The experienced and reliable Chapter 13 bankruptcy lawyers at Weintraub Zolkin Talerico & Selth LLP are here to answers all of your questions about bankruptcy law and filing for bankruptcy in Los Angeles, including possible alternatives that might suit your situation. If you are facing overwhelming debt or need to save your home from foreclosure, we can help you explore your debt relief options. We can work with you to propose your repayment plan and file for Chapter 13.

Why Should I File for Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is the second most popular form of personal bankruptcy, second only to Chapter 7. If you are being pestered by debt collectors, have a steady income and assets, and the equity in your home is not protected by filing Chapter 7 bankruptcy, then Chapter 13 bankruptcy might be the best option.

Chapter 13 can be effective for those who are experiencing the following:

• You have fallen behind on mortgage payments, or your house is in foreclosure
• You have back taxes and need time to repay them
• Your wages are being garnished, making it difficult to keep up with your bills
• You are behind on your car payments and your vehicle has been repossessed
• You do not qualify for Chapter 7 but need debt relief
• Consumers who are being crushed beneath the burden of credit card or medical debt

We can review your individual circumstance to help you determine whether or not Chapter 13 is the right option to help get rid of your debts. Bankruptcy is a big decision, so it's important that you review the pros and cons with a qualified attorney.

What Types of Debt Can Chapter 13 Eliminate or Reduce?

Both Chapter 7 and Chapter 13 can help eliminate many unsecured debts. However, as it is a repayment plan, Chapter 13 can allow you to reduce certain debts that are not covered under Chapter 7.

Chapter 13 can eliminate or reduce many types of debt, including:

Importantly, Chapter 13 also allows you to stop foreclosure and catch up on mortgage payments as part of your plan.

What Determines My Chapter 13 Repayment Plan?

While Chapter 7 bankruptcy requires liquidation of some of your assets for repayment of your debt, Chapter 13 bankruptcy allows you to reorganize your debt and repay a small part before you receive a discharge. This typically is achieved after approximately three to five years of adhering to an approved repayment plan.

You repayment plan is determined by several factors:

• Monthly payments: The monthly amount you must repay is determined in part by how much disposable income you have. Disposable income is typically defined as money you have left after paying your necessary living expenses.
• Length of plan: If your current monthly income is less than your state's median for your household, then your plan will last 3 years. If that amount is more than your state's median for your household, the plan will be 5 years.
• Total debts: Your plan must account for all debts, including priority debts, unsecured debts, and secured debts for property that you will want to keep (such as a home or car).

After creating a strategic plan to help you realistically repay your debt, we will structure the debts that will be included in the repayment plan as well as the percentage of them that you will repay. The more of your debt we can discharge, the lower the percentage of debt you will have to repay.

Once you complete the repayment plan, your remaining eligible debts will be discharged. In Chapter 13 bankruptcy, this may include unsecured debts such as medical bills and credit card debt.

Chapter 7 Bankruptcy vs Chapter 13 

Chapter 7

A Chapter 7 bankruptcy covers all of your assets at the time it is filed, protects the assets that qualify as "exempt," and discharges most or all of your debts.

Chapter 13

As with Chapter 7, Chapter 13 looks at your financial situation as of the filing date, but takes a more comprehensive approach to taking care of your secured debts (house, car, etc.) while also discharging most or all of your unsecured debts.

Learn More About Our Affordable Debt Solutions

Our Chapter 13 attorneys are committed to delivering aggressive and creative debt solutions at affordable fees. We have developed an innovative fee structure that allows us to bundle legal services for a flat or monthly fee. This enables our clients to cap their costs for legal services or plan their monthly expense for filing Chapter 13 bankruptcy. Call us now to determine how we can help you.

Call (310) 220-4147 to get started with a free consultation with our Chapter 13 bankruptcy attorney.