Chapter 13 Bankruptcy Lawyer

Providing Debtors with Solutions

If you are having difficulty paying your bills, but you want to keep your home, business, or other assets, Chapter 13 bankruptcy may be a good option for you and your family. Chapter 13 bankruptcy allows you to maintain many of your assets and properties while still getting a break on payment amounts and plan structure through the bankruptcy process. Bankruptcy is a serious legal decision, and the Los Angeles bankruptcy attorneys at SM Law Group, APC can help provide you with the information and the tools you need to make the best decision for you and your family.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy also known as “restructuring bankruptcy.” It is designed to assist indebted individuals who wish to retain some of the property they own and restructure their payment plans over an extended time period to make their payments more affordable.

Our attorneys assist many Californians with their Chapter 13 bankruptcy cases. If you are having difficulty paying your bills and you want to keep your home and other assets while restructuring your debt, you should speak to an attorney as soon as possible. We can review your financial situation and help you determine whether Chapter 13 bankruptcy is the right choice for you.

How to Know if You Qualify for Chapter 13 Bankruptcy

Chapter 13 bankruptcy is not for everyone. Unlike Chapter 7 bankruptcy, with Chapter 13, your debts will not be wiped away. Instead, they will be restructured – meaning you will have to repay your debts over time through a repayment plan.

A debtor will qualify for Chapter 13 bankruptcy if they receive a steady income and have debts that do not exceed the maximum limit. If you have excessive debt with little income, you may need to instead file for Chapter 7.

Conversely, if a debtor makes too much income, or doesn’t have enough debt, they may not qualify for bankruptcy at all. Determining whether you qualify for Chapter 13 bankruptcy can be confusing and difficult. The best way to figure this out is to meet with an experienced bankruptcy lawyer. Our attorneys can sit down with you and help you review your financial situation to help you decide if you wish to file for Chapter 13 bankruptcy.

Benefits of Chapter 13 Bankruptcy

Chapter 13 offers debtors many advantages, including:

• Save your home from foreclosure – You can work out a plan to repay your mortgage arrears so that you can get back on track and stay in your home.
• Protection from creditor lawsuits and actions – Wage garnishments, repossessions, and harassment from creditors must be stopped once you file for bankruptcy.
• Keep most of your property – Unlike Chapter 7 which requires liquidating most of your property, Chapter 13 allows you to keep your belongings, including furniture, car, home, and other personal property.
• Affordable Monthly Payments – You can set a monthly payment plan that is affordable for you, as long as the court approves it. In addition, not all debt needs to be repaid – your remaining debt may even be forgiven once you complete your repayment plan.