As seasoned OC Chapter 13 bankruptcy lawyers, we realize unforeseen circumstances can make it difficult for many to pay all of their obligations on time. We understand how hard it is to move forward while one is dealing with the stress of harassing phone calls, lawsuits, wage garnishments, foreclosure, and overwhelming credit card debt. We can help you determine if Chapter
13 bankruptcy can help you get a fresh start and put your life back
on track. Contact us today by calling 949 - 450 - 8500 for your
Orange County Chapter 13 Attorneys – Hallstrom, Klein & Ward LLP
Serving Rancho Santa Margarita, Huntington Beach, Fountain Valley, San Clemente
Chapter 13 bankruptcy is referred to as a "reorganization" because it allows individuals to consolidate their debt into an affordable monthly payment plan. In addition, filing for Chapter 13 bankruptcy stops creditor harassment and gives the debtor powerful protection of the Bankruptcy Court.
Who Can File for Chapter 13 Bankruptcy?
People who usually qualify for Chapter 13 make enough income to cover any living expenses, but not enough to pay off all of their debts. In many situations, individuals file for Chapter 13 bankruptcy when they have suffered a temporary loss or hardship. While there is no “means test” like in Chapter 7 bankruptcy, an individual must prove to the court that he or she has a consistent source of income to afford the monthly payments. This can be a difficult task, and the help of an experienced Orange County bankruptcy attorney is often crucial.
Is Chapter 7 or Chapter 13 Bankruptcy Better?
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a full or partial debt repayment plan administered by the Bankruptcy Court. The debtor submits a plan to the court for approval and, when a plan is approved, the debtor makes monthly payments to the bankruptcy trustee.
The trustee in turn makes payments to the creditors. The repayment period may be from 3-5 years. If all payments have been made according to the plan, the remaining debt is discharged (eliminated) at the end of the plan.
It all depends on your specific situation. Generally, Chapter 7 bankruptcy is better for people who have a lot of unsecured debts, like credit card debt and medical bills, and do not have a lot of property. However, if you have regular income and non-exempt property you want to keep (such as your home), you should consider a Chapter 13 bankruptcy. Chapter 13 might also be better if you have a second mortgage on your home. This is because a procedure called lien strip can help you completely eliminate the lien of your second mortgage.
Contact a Skilled Chapter 13 Lawyer in Orange County
Lien strip and Chapter 13 can be very complex proceedings, which is why it is best to consult with an experienced OC lien stripping / bankruptcy attorney. The attorney will carefully review your specific financial situation and advise you about bankruptcy options, lien strip, and credit rebuilding