Bankruptcy Chapter 13
Skilled Fullerton Bankruptcy Attorney Explains the Bankruptcy Process
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Bankruptcy Chapter 13
A Chapter 13 Bankruptcy permits you to pay your creditors in monthly instalments over three-to-five years. You will submit a formal plan to the court which states the amount of money that will be paid each month to your creditors to satisfy their claims. You do not have to pay your creditors in full. The amount that you must pay your creditors is determined by two tests:
- You must pay them at least as much as they would receive if you filed a Chapter 7 bankruptcy. Frequently, this is very little.
- You must pay your creditors your net disposable income during the term of the plan. This means that we will prepare a monthly budget for you. The income in excess of your monthly expenses \will be paid to your creditors. In order to qualify for a Chapter 13 bankruptcy a person must have less than $383,175 in unsecured debts and less than $1,149,525 in secured debts. Chapter 13 Bankruptcy is normally the appropriate remedy for persons in the following situations:
- Chapter 13 mostly is for persons who are in default on their mortgage payments and do not have the ability to bring those payments current within several months. Chapter 13 allows the default to be paid in smaller. Installments over 36-to-60 months. It is important to note though that the current trust deed payments must be kept current during the Chapter 13 bankruptcy_ Chapter 13 bankruptcy will not work if a person does not have the ability to make the current trust deed payments and the plan payment.
- Chapter 13 mostly is for persons who are in default on their mortgage payments and do not have the ability to bring those payments current within several months. Chapter 13 allows the default to be paid in smaller. Installments over 36-to-60 months. It is important to note though that the current trust deed payments must be kept current during the Chapter 13 bankruptcy. Chapter 13 bankruptcy will not work if a person does not have the ability to make the current trust deed payments and the plan payments.
Reliable Orange county Attorney Managing Your Chapter 13 Bankruptcy
Helpful advice on reorganizing debt
As hard as you work to make ends meet, you still struggle under a mountain of debt. You may have considered bankruptcy, but with a regular income, you don’t want to lose your property to a Chapter 7 process. Chapter 13 may be the option for you. Our bankruptcy attorney at the Law Office of Madaen can help you achieve an affordable Chapter 13 filing to preserve your property while setting a course for your financial recovery.
Mr. Madaen, our skilled Bankruptcy Attorney, lives and works in the Orange County area and understands the all-too-common struggles of working families to keep one step ahead of debt and ever-rising expenses. Madaen Law, Inc. offers inexpensive filing and management of your Chapter 13 case. As dedicated as we are to keeping costs low, we are as generous with our time and skill in managing the complex aspects of your case.
What you need to know about Chapter 13
Filing for Chapter 13 bankruptcy reorganizes your debts into one monthly payment plan. While Bankruptcy Chapter 7 takes 90 days, the Chapter 13 repayment plan takes from three to five years to pay off some debts and eliminate others. The length of time it takes depends on the amount you can afford to pay each month after paying necessary living expenses, such as insurance premiums and your mortgage or rent.
You may be able to use Chapter 13 to avoid foreclosure, vehicle repossession or the repossession of other personal property. Despite Chapter 13’s primary function as a repayment plan, it is still Bankruptcy and affects your credit rating.
For more information on the process of Chapter 13 bankruptcy, please visit our Frequently Asked Question Page.
Experienced California Bankruptcy Law Attorney Providing Affordable Counsel
Mr Madaen is committed to providing affordable, accessible services to help financially strapped members of the community. The chance to file bankruptcy for less than $1,000 offers real hope to those struggling with debt. Mr.Madaen believes this is both good business practice and a way of giving back to our friends and neighbors.
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Here are all resources you would need to know about bankruptcy!
This is called straight bankruptcy. It is the most commonly used. You will retain all your exempt assets free of any creditor claims.
Chapter 11, mostly used by businesses –also concerns reorganization of your debts–that is, payments over a period of time which is similar to Chapter 13.
A Chapter 13 Bankruptcy permits you to pay your creditors in monthly installments over three to five years.
Click here to know more about Involuntary Bankruptcy.
An adversarial action is somehow a civil lawsuit within bankruptcy court.