Los Angeles Chapter 13 Bankruptcy Lawyers
If you are struggling to pay your bills every month and have accumulated more debt than you can afford, Chapter 13 bankruptcy might provide the right solution for you. In Chapter 13, you can reorganize all your debts into a single monthly payment on a convenient, affordable plan. Along the way, your debts can be adjusted so you only pay what you can afford. At the end of the plan, much of your remaining debts, such as credit card bills, medical bills, or personal loans, can be discharged so you are no longer obligated to repay them. The Board-Certified bankruptcy specialists at Wadhwani & Shanfeld can help you determine if Chapter 13 is the right solution that best meets your current situation. If it is, we’ll go to work right away to secure the best outcome so you can exit Chapter 13 with minimal debt and the financial strength to stay on top of your finances. Contact our experienced Los Angeles Chapter 13 bankruptcy lawyers today for a complimentary consultation and immediate assistance.
When Is Chapter 13 Right for Me?
If any of the following apply to you, then you likely could benefit from Chapter 13:
- You have too much income to qualify for Chapter 7
- You need to protect your home from foreclosure
- You have non-exempt assets you want to protect from liquidation in Chapter 7
- You have debts to repay, such as car loans or tax debts, but you need additional time
Chapter 13 is commonly referred to as reorganization bankruptcy, debt adjustment, or a wage earner’s plan. If you have a steady source of income but have acquired more debt than you can afford to repay, a Chapter 13 bankruptcy lets you create a plan that pays off your creditors over a three or five-year period. In the plan, you can adjust your debts to an affordable amount, and some debts might not have to be repaid at all. Your creditors are bound to accept the terms of the plan, and they cannot pursue any collection activity (such as wage garnishment, bank levy, liens, repossession, foreclosure, etc.) while the plan is in effect.
Chapter 13 Can Save Your Home From Foreclosure
For most homeowners, their monthly mortgage payment is the biggest financial obligation they have to meet every month. If you miss your mortgage payment, you can quickly get placed in default. Once you’ve received a notice of default from the lender, you have 90 days to make up all missed payments before the bank can schedule a foreclosure sale of your home. Once a foreclosure sale occurs, you can be evicted.
Chapter 13 can protect you from having your house foreclosed on. First of all, as soon as you file your Chapter 13 petition, the “automatic stay” goes into effect. This powerful bankruptcy provision tells your creditors that you filed for bankruptcy and they are to cease all collection activities immediately. This applies to foreclosures as well, even if you’ve already received a Notice of Default or a Notice of Trustee’s Sale from the bank.
With the automatic stay in place, you have the breathing room to create a plan that adjusts and reorganizes your debts into a plan you can afford. Any past due payments or mortgage arrears can be folded into your Chapter 13 plan, which you can pay off over either a three-year or five-year period, depending on your means. Your creditors cannot pursue any collection efforts outside of the bankruptcy so long as you are compliant with your plan.
Chapter 13 can make many important adjustments to your mortgage in addition to getting you out of default and stopping a foreclosure. During the reorganization process, it is possible to lower your mortgage payments through a loan modification approved by your lender. In addition, if you are underwater on your first mortgage and have a second mortgage as well, that junior lien can be stripped away and dealt with as an unsecured debt, requiring you to make little or no payments in some cases to get rid of that debt.
Contact Our Los Angeles Chapter 13 Bankruptcy Lawyers Today
Chapter 13 is the best solution for many California consumers who need help dealing with overwhelming debt and taking back control of their financial situation. The bankruptcy specialists at Wadhwani & Shanfeld provide expert advice and assistance at every step of the way. Contact our Los Angeles Chapter 13 bankruptcy lawyers for a complimentary consultation to explore and understand your options. Call now to speak to a lawyer today and get the help you need.
