Los Angeles Chapter 13 Bankruptcy Attorneys

Understanding Chapter 13 Bankruptcy in Los Angeles

Despite what you may have heard, the bankruptcy process is still available for those 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.

Our Los Angeles office offers a deep understanding of California's specific bankruptcy laws, which can be significantly different from federal regulations. This local knowledge positions us uniquely to provide insights that could make a critical difference in your case outcome.

Have questions? Speak with a qualified Chapter 13 lawyer in Los Angeles at RHM LAW LLP. Start a free 30-minute consultation or call us at (213) 344-0043.

What Can Chapter 13 Do For Me?

Chapter 13 bankruptcy allows you to reorganize your debt. You will work with an attorney to set forth a plan to repay as much of 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 reported income 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 owed. Chapter 13 also stops increases in interest rates, such as those 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, 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.

For Los Angeles residents, protecting personal property is critical. With high living costs, any interruption in financial security can be especially challenging. Leveraging Chapter 13 can relieve these pressures, ensuring your assets remain safeguarded.

A new financial future may be possible for you, whether you file for Chapter 7 or Chapter 13.

What Can Chapter 13 Discharge?

Completing a Chapter 13 repayment plan in Los Angeles can offer significant relief by discharging various types of debts. Unlike other forms of bankruptcy, Chapter 13 allows for adjustments that can help you manage your financial obligations better. Discharged debts may include unsecured loans, significant credit card balances, and certain medical bills, helping you start with a cleaner slate post-bankruptcy.

It's important to work with attorneys who understand the intricacies of California's bankruptcy codes to ensure you're fully aware of all dischargeable debts in your situation. At RHM LAW LLP, our attorneys guide you through each step of the process, making sure you have a comprehensive understanding of what debts can be discharged and how that affects your long-term financial health.

After completing your Chapter 13 payment plans, you'll be able to discharge the remainder of your qualifying debts, meaning these 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 collateral

Completing the Chapter 13 process not only alleviates these debts but also provides individuals an opportunity to reset their financial health. The long-term benefits often extend beyond mere debt discharge, helping to establish a stable financial foundation.

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

Will I Lose My Property if I File for Bankruptcy in California?

No. One advantage of Chapter 13 is that it allows you to keep your property, even if you are behind on mortgage or car loan payments. The repayment plan will help you catch up on these arrears.

California's homestead exemptions play a significant role in how property is treated in Chapter 13 filings. These exemptions can potentially protect your property against liquidation, even in the face of financial distress. Consulting with a knowledgeable attorney familiar with California law ensures that your property rights are well defended during the bankruptcy process.

What Is a Hardship Discharge?

Sometimes, circumstances arise, prevent 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:

1. A debtor’s inability to complete plan payments is because of circumstances that are not in the debtor’s control and occur through no fault of the debtor; and
2. Creditors have received at least as much as they would have if the debtor had filed for a Chapter 7 liquidation case; and
3. Modification of the plan is not possible.

Events warranting a hardship discharge can include serious illness, job loss, or other inevitable disruptions that affect financial stability. It's important to communicate early with your attorney if such events occur, to explore all possible avenues under Chapter 13 regulations.

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) 344-0043 or contact us online.

About 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 for 3 years. If your income is greater, it can be 5 years.

The calculation of a Chapter 13 repayment plan is crucial, often requiring detailed attention to financial records and projections. Seeking assistance from an experienced Los Angeles Chapter 13 attorney can ensure that your plan is not only compliant with the court's requirements but also aligned with your financial capacities.

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 debtor's non-exempt assets had been liquidated under a Chapter 7 bankruptcy. This can be payment in full, a percentage of the claims, or, under appropriate situations, nothing.

Work with an experienced Chapter 13 bankruptcy attorney in Los Angeles to help you structure a manageable monthly payment plan.

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.

How does Chapter 13 differ from Chapter 7 bankruptcy?

Chapter 7 is a liquidation bankruptcy that discharges most unsecured debts without requiring repayment. Chapter 13 involves creating a repayment plan and allows you to keep your property and assets.

Choosing between Chapter 7 and Chapter 13 can be complex, depending on personal circumstances. While Chapter 7 may be quicker, Chapter 13 offers more protection for assets, often critical for sustaining life in high-cost cities like Los Angeles. Connect with a skilled Chapter 13 bankruptcy lawyer in Los Angeles to see which option will work best for you.

Can I File Chapter 13 After Chapter 7?

You cannot file for Chapter 13 bankruptcy after receiving a 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.

For many, the transition from Chapter 7 to Chapter 13 can offer a second chance at debt management, especially if facing new economic challenges in the Los Angeles area. Our team can help navigate this complex decision-making process.

Life After Chapter 13 

Completing a Chapter 13 bankruptcy in California brings significant changes and financial relief. This structured process allows you to repay a portion of your debts over 3-5 years. Here's what life may look like after:

1. Debt Relief: After your successful Chapter 13 repayment plan, unsecured debts like credit cards and medical bills are significantly reduced.
2. Credit Score: While it may lower your credit score, it's often less severe and shorter-lived than Chapter 7. Over time, you can rebuild credit responsibly.
3. Financial Stability: You regain stability with a clear plan to pay secured debts, like mortgages and car loans, and catch up on arrears.
4. Retaining Assets: Chapter 13 lets you keep your property, safeguarding it from liquidation, including homes and cars.
5. Budgeting Skills: You learn valuable budgeting skills during the plan, helping prevent future financial difficulties.
6. Reduced Stress: Relief from debt and asset protection reduces the stress of financial burdens.
7. Legal Obligations: Ongoing financial obligations, like child and spousal support, remain after completing Chapter 13.
8. Financial Planning: Continuing financial guidance helps plan for emergencies, retirement, and future financial goals.
9. Rebuilding Credit: Start rebuilding credit with secured cards and responsible financial management.
10. Bankruptcy on Record: Chapter 13 bankruptcy remains on your credit report for seven years, but improves with responsible financial management.

Life after Chapter 13 in California offers a fresh start, empowering you to regain control of your finances and build a brighter financial future. Maintain good financial habits, seek guidance as needed, and be patient while rebuilding credit and securing financial stability.

How Can a Bankruptcy Attorney Help You With a Chapter 13 Filing?

Bankruptcy attorneys specializing in Chapter 13 filings play a crucial role in aiding individuals facing financial difficulties. They offer legal advice, help you understand the nuances of Chapter 13 bankruptcy, and guide you through the filing process. They work closely with you to design a repayment plan tailored to your specific situation and present this plan to the court. Once the plan is approved, they continue to provide counsel and support until the completion of the repayment period, ensuring you meet all obligations and ultimately achieve financial stability.

Bankruptcy attorneys provide the following services:

• Consultation: They usually start with a consultation to discuss your financial situation and assess your eligibility for Chapter 13 bankruptcy.
• Paperwork Preparation: They handle all necessary paperwork and ensure that it is filled out correctly and filed in a timely manner.
• Repayment Plan Design: They work with you to design a feasible repayment plan that aligns with your income level and ability to pay.
• Debt Negotiation: They negotiate with creditors to reduce your debt and stop actions such as wage garnishment and repossession.
• Court Representation: They represent you in court proceedings, protecting your rights and interests.
• Post-Filing Advice: Upon successful filing, they provide advice on managing your finances and rebuilding your credit score.
• Legal Support: They offer ongoing legal support and expertise throughout the repayment period to navigate any challenges that might arise.

Struggling with debt? Our Chapter 13 bankruptcy attorney in Los Angeles is here to help. Call (213) 344-0043 or contact us online for a free 30-minute consultation!

Frequently Asked Questions About Chapter 13

What Is the Role of a Trustee in Chapter 13 Bankruptcy?

In Chapter 13 bankruptcy, a trustee manages the debtor's repayment plan, ensuring payments are correctly distributed to creditors. They collect payments, prioritize debts based on the court-approved plan, and review financial records for accuracy. Trustees may challenge discrepancies to ensure fairness and transparency throughout the process.

How Do I Know If Chapter 13 Is My Best Option?

Determining if Chapter 13 is right for you depends on factors like income stability, debt type, and financial goals. It’s ideal for those with regular income seeking to restructure debt and protect assets. Consultation with an experienced Los Angeles Chapter 13 attorney at RHM LAW LLP can ensure expert evaluation of your unique situation and guidance toward the best financial recovery plan.

What Happens If I Miss a Payment During My Chapter 13 Plan?

Missing payments in Chapter 13 can lead to case dismissal and loss of benefits like foreclosure protection. If you face financial struggles, notify your attorney immediately. They can help modify your repayment plan to fit your situation, ensuring continued protection and case stability. At RHM LAW LLP, we focus on guiding clients through challenges and providing solutions to keep you on track toward financial recovery. Speak with a skilled Chapter 13 bankruptcy attorney in Los Angeles now.

Contact Our Chapter 13 Lawyer

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.

California's local court system benefits those who actively engage with knowledgeable attorneys who understand the intricacies of Southern California's financial regulations. Choosing the right legal guidance can be crucial for successfully navigating the Chapter 13 process.

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) 344-0043 to request a 30-minute complimentary 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.