Skip to Content
Free Consultations Via Phone or Webchat - We Answer Live 24/7
Top
A Dedicated Team Focused on Finding Solutions We're here to help you find and gain financial relief.

Chapter 13 Bankruptcy Attorney in Valencia

What Is Chapter 13 Bankruptcy?

Chapter 13 is one of a variety of bankruptcy options available to individuals struggling with overwhelming debt in the United States. It is primarily focused on individuals who are seeking a way to rid themselves of their debt without having to part from the valuable assets that they possess. As opposed to Chapter 7, which involves asset liquidation in order to assist in the repayment of creditors, Chapter 13 enrolls the individual in a creditor payment plan, which allows them to pay towards their debts on a monthly basis.

How Long is Chapter 13 Bankruptcy?

The person continues to pay their creditors in installments (typically for a period lasting three to five years), until their debts have been fully satisfied, at which point they are released from having the majority, or all, of their financial liabilities. By actually paying their creditors the money that they are owed, they are able to avoid the loss of any assets that they would be reluctant to part with.

See if Chapter 13 will work for you. Call (888) 256-8581 or contact us online for a free consultation with a Santa Clarita Chapter 13 bankruptcy attorney. We speak Spanish!

Understanding the Chapter 13 Bankruptcy Process

Chapter 13 bankruptcy, also known as a wage earner's plan, allows individuals with a regular income to create a repayment plan to pay off all or part of their debts over a period of three to five years. This type of bankruptcy can be a beneficial option for those who do not qualify for Chapter 7 or who want to protect their assets from liquidation.

Key steps in the Chapter 13 bankruptcy process include:

  1. Filing a petition with the bankruptcy court
  2. Creating a repayment plan based on your income and expenses
  3. Attending a meeting of creditors to review and approve the plan
  4. Making regular payments to a trustee, who distributes funds to creditors
  5. Completing a financial management course
  6. Receiving a discharge of remaining eligible debts upon successful completion of the plan

Our experienced Valencia chapter 13 bankruptcy attorney can guide you through each step of the process and help you achieve financial relief.

Benefits of Filing For Chapter 13

Filing for Chapter 13 bankruptcy comes with many benefits. Below are some of the common benefits:

  • Triggers an automatic stay, which means that creditors are required to stop any efforts to collect from you.
  • Stops foreclosure proceedings.
  • Stops repossession.
  • Debts are discharged within 3 - 5 years.
  • Ability to lower payments on secured debts.

For more about the benefits of filing, reach out to Financial Recovery Law today: (888) 256-8581.

Do I Qualify For Chapter 13 Bankruptcy?

Not everyone is eligible for Chapter 13. In order to qualify for Chapter 13, you must have these four things:

  1. Your income tax filings must be current.
  2. You have sufficient disposable income.
  3. Your debts can’t be too high.
  4. You cannot be file because you own a business that is in debt.

Before filing for Chapter 13 bankruptcy, you must complete specific documentation and prove the items listed above. Regarding your income tax, you must submit proof of filing your federal and state income tax returns for the last four years. If you do not provide your returns or transcripts of the returns, your case will be dismissed. Our bankruptcy Chapter 13 attorneys can ensure you have all the information and forms you need beforehand to prevent getting your case dismissed.

Start a free consultation with a Chapter 13 lawyer in Santa Clarita. Call (888) 256-8581 today.

Do I Have Sufficient Disposable Income?

In order for the court to consider your case, you must prove that you have sufficient disposable income. You must show the court that you have enough income left behind to meet your repayment obligations (per a 3-5 year repayment plan) after subtracting specific expenses and required payments on secured debts (like a car loan or mortgage).

If your secured and unsecured debt exceeds a certain amount, it will be considered “too high” and you will not be eligible for Chapter 13 bankruptcy.

The limit changes every three years. As of April 2019, the debt limitations are:

  • $1,257,850 of secured debt, and
  • $419,275 of unsecured debt

If your debt exceeds this, you must file an individual Chapter 11 bankruptcy case instead.

Businesses and Filing for Chapter 13

A business owner cannot file for Chapter 13 in the name of the business. Chapter 11 bankruptcy is for businesses that need help reorganizing their debts. There may be a few exceptions, however, you may have to speak with an experienced bankruptcy lawyer to determine this. Note that you can file for Chapter 13 as an individual if you are a business owner. Learn more during a free consultation with an attorney at Financial Recovery Law.

What Happens When My Chapter 13 is Paid Off?

When your Chapter 13 is paid off, you will receive a discharge order from the bankruptcy court that will wipe out the remaining balance of your debt and creditors can no longer contact you to collect on your debts. Most nonpriority, unsecured debt will be discharged, however, student loan balances are an exception, and you will be responsible for those.

How do I Know When Chapter 13 is Over?

When Chapter 13 is over you will receive discharge papers and a final decree via mail.

Some examples of debts that are covered in Chapter 13, but not Chapter 7:

  • Debts incurred to pay nondischargeable taxes -- for example, if you paid taxes via credit card
  • Obligation to your former spouse for other debts assigned to you during a divorce
  • Fines or penalties owed to the city, county, state
  • Stripped or crammed-down liens
  • Debt from a previous bankruptcy case -- for example if you tried to file for Chapter 7, but were not eligible or if you waived your discharge

Call a Santa Clarita Chapter 13 Bankruptcy Lawyer

The legal team at Financial Recovery Law has successfully guided thousands of individuals through their bankruptcy proceedings, including those filing for Chapter 13. We utilize our considerable knowledge and experience in bankruptcy law in guiding each client through the process, so that they can enjoy a strong chance of reaching a successful conclusion to their case. If you are considering Chapter 13 bankruptcy, contact our offices as soon as possible, and a Valencia bankruptcy lawyer will provide you with the information you need to come to a decision in your case.

It is not recommended that one try and navigate through the bankruptcy process on one's own. There are many nuances and legal details involved in filing for bankruptcy, and a person unfamiliar with these can potentially get themselves into deeper financial trouble. Retaining the services of an attorney familiar with bankruptcy law can ensure that one avoids these pitfalls, and maximizes one's chances of obtaining a debt free life.

Contact a Valencia Chapter 13 Bankruptcy Lawyer for information on Chapter 13 Bankruptcy and how it may be able to help you in your financial situation.

Download Our Free Bankruptcy eBook Get a fresh start with Chapter 7 or Chapter 13 bankruptcy. Our firm is here to help.

Real Stories From Real People

    "Clearly understood"
    Great explanation. Clearly understood. Ready for the next step!
    - Benjie B.
    "Thank you for your help."
    Very informative and highly recommended. Thank you for your help. God bless you Attorney Ray.
    - Michael C.
    "Very impressed"
    Very impressed with Mr. Bulaon. He is obviously very good at what he does. He is friendly, smart, and patient and makes you feel comfortable right away. I wouldn't hesitate to hire this firm or recommend him to anyone needing the service he provides!
    - Traci B.
    "Very professional and kind person."
    Very helpful. Explained every possible way to solve my case. Very professional and kind person. Thank you for helping me again.
    - Normita
    "Thank you"
    After being frustrated with our case being prolonged by another firm, I found Mr. Bulaon of RJB Law Offices. I was very pleased with our initial meeting. I look forward to getting our case resolved finally and behind us. My only disappointment was with myself for not finding Mr. Bulaon sooner. Thank you.
    - Verla R.
    "Thanks for all your help"
    Best lawyer and crew. Thanks for all your help!
    - Marco J.
    "Very professional"
    Very professional and informed, his knowledge of our situation was obvious and I feel we will come to a great resolution.
    - Michael G.
    "They really want to help"
    Very informative and patient and seemed to really want to help.
    - Greg W.

Contact Us Today

Need Immediate Assistance? Call (888) 256-8581 Now - We Answer Live 24/7!
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.
  • By submitting, you agree to be contacted about your request & other information using automated technology. Message frequency varies. Msg & data rates may apply. Text STOP to cancel. Acceptable Use Policy

Why Choose Us

We Put You & Your Needs First
  • We will treat you, like we treat all our clients, with respect and decency.
  • We are a multi-lingual firm with attorneys fluent in English, Tagalog, and Armenian.
  • We are known for honest, knowledgeable, and client-focused service.
  • We've helped thousands of people and businesses find debt relief.