A Guide to Understanding Chapter 13 Bankruptcy Inside Out

1. A Guide to Understanding Chapter 13 Bankruptcy Inside Out Most people think that a bankruptcy court is one last stop on the road to a financial dead end. For many, going to a bankruptcy court is the last option when repaying all your debts seems next to impossible. However, there is hope in bankruptcy—it is called Chapter 13. Chapter 13 Bankruptcy, Explained Federal bankruptcy code’s Chapter 13 offers some relief from financial liabilities. Also referred to as the Wage Earner’s Bankruptcy, Chapter 13 has some helpful provisions for debtors with regular income. Through these provisions, you, as a debtor, will be allowed to pay back some creditors less than the actual amount owned while retaining all your assets such as a car and house. The most attractive feature of Chapter 13 is that it lets you keep your residential property if you are paying for the mortgage as per a defined settlement plan. When you file for Chapter 13 bankruptcy in Los Angeles, you will be usually given anywhere between three and five years for resolving your debts while applying all of your disposable income for debt reduction. This legal framework will let you eliminate any type of unsecured debts so that you can catch up on missed mortgage payments. Another attractive feature of Chapter 13 is that it helps in short-circuiting the option of home foreclosure.

2. The biggest benefit of Chapter 13 is that it lets you keep your home. However, you will spend the rest of your repayment years under the observation of a trustee appointed by court; this trustee will be responsible for collecting your payments and distributing them to your creditors. One important thing, though: Not everyone is eligible for filing for Chapter 13. Qualifying for Chapter 13 Bankruptcy As you now know, the biggest benefit of this chapter is that you are allowed to repay some of your debts over a repayment period ranging from three to five years. But before the court approves your repayment plan, you will need to fill out the necessary bankruptcy paperwork for proving that you: Have updated tax filings Fall within the defined debt amount limitations Are employed and have the needed income for providing monthly payments Are an individual and not an enterprise Filing for Chapter 13 Bankruptcy When you are filing for this bankruptcy chapter, you will need to disclose every single aspect of your existing financial condition. These aspects include expenses, income, creditors, previous transactions, and assets; and they need to be disclosed when you are preparing for the official bankruptcy paperwork. The case will begin once you file all the needed paperwork including forms. You will have fourteen days for submitting your Chapter 13 repayment process; this application submission will extend only if you receive an extension from court. Get in touch with top bankruptcy lawyers in Los Angeles So, now, you have a basic understanding of what Chapter 13 is. In case you need in-depth guidance related to this legal framework for filing for bankruptcy, get in touch with top bankruptcy lawyers in Los Angeles at Wajda & Associates. At this law firm, the attorneys have the right understanding and latest tools for helping you in filing bankruptcy in Los Angeles. Get connected with these lawyers today and start your free bankruptcy evaluation right now.