Have your debts grown larger than you can handle? Are you afraid that you will lose your car or home? Are creditors hassling you and making threats? When facing these financial hardships, it is important to remember that you have options. Chapter 13 bankruptcy can help you take control of your debt while still retaining your property.
Our Redlands Chapter 13 bankruptcy attorney can help you tackle these complications and resolve your debts. At Dolen, Tucker, Tierney & Abraham, our attorneys have a reputation of dedication. Attorney M. Wayne Tucker has over 30 years of experience helping families. His work has helped save houses, cars, and financial futures. He is ready to help you file for Chapter 13 bankruptcy and revive your finances.
Chapter 13 bankruptcy helps individuals with a steady income overcome their debt problems while retaining their property. Sometimes called the "wage earner plan," Chapter 13 helps you restructure your debt into manageable payments. This differs from the Chapter 7 bankruptcy process, which liquidates non-exempt assets.
After determining your eligibility, you will create a repayment plan to submit to the court. This will allow you to restructure your debt into more manageable payments. This plan will take into consideration your:
The Chapter 13 process can help you catch up on late payments for mortgages, cars, and other debts. Most Chapter 13 repayment plans take place over three to five years. For debtors who make less than California’s median income, repayment plans will be three years long. For debtors who make more than the median, repayment plans are five years. The court must approve these plans. Unsecured debts that are not completely paid off at the end of these plans are usually discharged.
Chapter 13 bankruptcy has many advantages. As with other bankruptcy processes, an automatic stay will begin when you file Chapter 13. This will halt:
Filing Chapter 13 bankruptcy in California may allow you to keep all your property. This will protect items such as, but not limited to:
During the plan you make monthly payments to a Chapter 13 Trustee. The Trustee disburses the money to allowed creditors. To make these payments manageable, the court may reduce your liabilities. At the end of your repayment plan, the court will discharge your remaining unsecured debts. This can be an incredible relief to families struggling with financial pressure. A Chapter 13 plan will pay off income tax liabilities. Student loans can be included in a plan or be put on forbearance until the plan is completed. They can only be discharged if they are not federally insured loans. Bankruptcy court rarely reduces or discharges child or spousal support obligations, but sometimes these can be restructured.
Filing for Chapter 13 bankruptcy also does less damage to your credit. This is due to your effort to repay your creditors.
As mentioned before, filing for Chapter 13 bankruptcy can be a complex process. You must first determine if you qualify for the process. Before the filing, you must complete an accredited credit counseling course. Then, you must submit a debt reorganization plan to the court. After filing you will need to attend a 341(a) meeting and a confirmation hearing. These are only a few of the tasks required to pursue Chapter 13.
To successfully navigate the entire Chapter 13 process, you should retain an attorney to help. Most Chapter 13’s filed without an attorney fail. The deadlines, requirements and restrictions are challenging. One mistake could delay your bankruptcy for months or cause it to be dismissed. Even the Administrative Office of the U.S. Courts recommends consulting with an experienced attorney.
Our Redlands law firm has served the Inland Empire since 1973. We have handled a wide variety of cases including personal injury law, estate planning, civil litigation and bankruptcy. When your family is facing financial struggles, our Chapter 13 bankruptcy attorney is ready to help. Call Dolen, Tucker, Tierney & Abraham at (909) 326-2769 or fill out our online contact form. Remember, the initial consultation is free, and there is no obligation.