Los Angeles Chapter 13 Bankruptcy Attorneys
Using Experience & Knowledge to Put Clients on the Right Path
Despite what you may have heard, the bankruptcy process is still available for those people who need to find their way out of debt. If you are a wage earner with a regular income, you can eliminate some debts and reduce others by filing for Chapter 13 bankruptcy. You can pay back taxes, back child support and alimony, and a small amount on your remaining debt each month, without penalties or interest. After a few short years, you can emerge from the process with confidence and the expectation of better times ahead.
Why Choose Our Chapter 13 Lawyers
At RHM LAW LLP, our bankruptcy attorneys have helped thousands of people get out from under the burden of debt – and we can help you. We understand that these difficult times have people all over the greater Los Angeles area struggling with serious financial issues, such as foreclosures, mounting debts, and repossessions. If you are currently facing these financial hurdles, you should reach out to our legal team to discuss your situation so we can determine if filing for Chapter 13 bankruptcy is the right option for you.
What Can Chapter 13 Do For Me?
Chapter 13 bankruptcy allows you to reorganize your debt. You work with an attorney to set forth a plan to repay as much as your debt as possible during a 3-5 year period. You’ll be required by a bankruptcy court to provide detailed financial statements that support your proclaimed revenue and expenses. Once the plan is created you’ll have to make monthly payments to a trustee, who in turn pays off your creditors.
Once you have completed the repayment plan, you are no longer responsible for any previous debts, even if through repayment, you are not required to pay the entire amount that was owed. Chapter 13 also stops increases on interest rates, such as the interest rate owed on a credit card.
Chapter 13 Protects Your Home, Car & Personal Property
A Los Angeles Chapter 13 lawyer at our firm can discuss your options and whether a Chapter 13 bankruptcy is right for you. For some people, we recommend a Chapter 7 bankruptcy filing. Whatever option you choose, we can take action that very day.
Chapter 13 provides many benefits:
- As soon as we file for you, we can stop foreclosure actions, repossession actions, garnishment, and creditor harassment.
- Under Chapter 13, you can keep your home, your car, and personal property. We may even be able to remove a second or third mortgage entirely.
- Your unsecured debts are reduced or eliminated.
- You will have a manageable monthly payment to repay a portion of your debts from your disposable income.
A new financial future may be possible for you whether you file for Chapter 7 or Chapter 13.
What Can Chapter 13 Discharge?
After completing your Chapter 13 payment plans, you'll be able to discharge the remainder of your qualifying debts - meaning this will be dismissed and you will not have to repay them.
Debts that can be discharged at the end of Chapter 13 include:
- Credit card debts
- Medical and hospital bills
- Personal loans not backed by a collateral
Debts that are nondischargeable under Chapter 7 and are dischargeable under Chapter 13 include:
- Debts (other than support related debts) that arise from a divorce or separation agreement
- Debts that arise from a willful or malicious injury caused by the debtor (unless there has already been restitution or damages awarded in a civil action against the debtor)
- Debts from government fines, penalties and forfeitures
What Is a Hardship Discharge?
Sometimes circumstances arise, preventing the debtor from completing the plan. When this happens the debtor may ask the court to grant a “hardship discharge.”
A Hardship discharge is available only if the following occur:
- A debtor’s inability to complete plan payments is because of circumstances that are not in debtor’s control and occur through no fault of the debtor; and
- Creditors have received at least as much as they would have if the debtor had filed for Chapter 7 liquidation case; and
- Modification of the plan is not possible.
Sometimes injury or illness that precludes employment sufficient to fund even a modified plan can serve as leverage for a hardship discharge. You should discuss your hardships with your attorney to help you determine how to move forward.
Filing for bankruptcy is a serious decision. To learn more about which option is best for your situation, get in touch with a Los Angeles Chapter 13 attorney at RHM LAW LLP. Dial (213) 344-0043or contact us online.
Chapter 13 Repayment Plans
As part of your Chapter 13 filing, you must create a monthly payment plan that details how you intend to repay your creditors.
Your Chapter 13 payment plans are created by factoring in:
- How many debts you have, including priority debts, unsecured debts, and secured debts. If you are keeping your house and car, you must catch up with past payments and keep up with current payments.
- How much income you have. You must calculate your disposable income, which is your total income minus your necessary expenses to help determine how much you can afford to pay out monthly.
- The length of your repayment plan. Most payment plans last from 3 to 5 years. If your average monthly income is less than your state's median, your plan will be 3 years. If your income is greater, it can be 5 years.
The unsecured debtors receive a payment that reflects what the debtor could reasonably afford. A limitation of a Chapter 13 Plan is that it is required to pay the unsecured debts at least as much as the creditors would have received if the debtors non exempt assets had been liquidated under a Chapter 7 bankruptcy. This can be payment in full, a percentage of the claims, or even under the appropriate situations, nothing.
Work with an experienced Los Angeles Chapter 13 attorney to help you structure a monthly payment plan that is manageable.
Is Chapter 13 Bankruptcy Right for Me?
Chapter 13 bankruptcy might suit your situation if you have a regular income and it can help you catch up on past-due payments and deal with outstanding debts in an affordable, manageable way to get your life back on track.
If you owe more than you can afford to pay, or if you are having difficulty paying medical, credit card, or other bills, then contact our Los Angeles Chapter 13 bankruptcy lawyers to get advice from a seasoned legal professional.
Can I File Chapter 13 After Chapter 7?
You cannot file for Chapter 13 bankruptcy after receiving debt discharge through Chapter 7 within the last 4 years. Chapter 7 bankruptcy involves liquidating assets to pay off debts, while Chapter 13 allows repayment of debts through a court-approved plan over 3 to 5 years.
However, you may be able to file for Chapter 13 bankruptcy within 4-8 years if your financial situation has changed significantly since the Chapter 7 discharge. You should consult with a bankruptcy attorney to determine if filing Chapter 13 bankruptcy is an option for you, based on your individual circumstances and eligibility. The attorney can also help you decide which bankruptcy chapter is best suited to resolve your debts and financial situation.
We Guide You Through the Process
Our job is to guide our clients to a new and better life after bankruptcy. We take care of everything – from filing papers in court, to negotiating with creditors to reduce your debt, to developing a repayment plan and getting it approved by the Court.
At the time we file Chapter 13 bankruptcy for you, you will owe only the court filing fee. RHM LAW LLP offers reasonable upfront fees and payment plans to help you preserve your money.
Call now to speak with a Los Angeles Chapter 13 lawyer – debt relief and financial freedom are just a phone call away.
Call (213) 344-0043to request a 30-minute risk-free consultation with our Los Angeles Chapter 13 bankruptcy lawyer. With our trusted legal team on your side, you can get the help you need to resolve your financial issues and get a fresh start in life.
M. Jonathan Hayes Certified Bankruptcy Specialist
Matt D. Resnik | Managing Partner Certified Bankruptcy Specialist
Roksana D. Moradi-Brovia | Partner Certified Bankruptcy Specialist
W. Sloan Youkstetter | Associate Attorney Certified Bankruptcy Specialist
Russell J. Stong III | Associate Attorney Certified Bankruptcy Specialist
David M. Kritzer Associate Attorney
Committed to making the process as stress-free as possible for our clients, our Los Angeles bankruptcy attorneys and dedicated staff will handle everything for you. From filling out paperwork through getting end results, we will work to help your case run smoothly and efficiently. We serve our clients in English, Spanish and Farsi.