Chapter 13 bankruptcy los angeles

Reorganization/debt repayment for individuals with “regular income”.

Chapter 13 Bankruptcy Los Angeles does nearly everything a Chapter 7 does, but it allows for more options.  Chapter 13 is inherently more expensive and takes more time to receive a discharge of debts.

The benefits of a Chapter 13 Bankruptcy are:

  1. You can keep all your assets
  2. You can have certain liens against your property (judgment liens and also sometimes junior mortgage liens) removed
  3. You can catch up on past due mortgage payments
  4. You can make payments according to your budget and pay anywhere from 0-100% of your unsecured debts over a period of 36 to 60 months at 0% interest.

There are other rules as well.

The primary “trade-off” in a Chapter 13 is that you must have a repayment plan over 36 to 60 months.  The amount of the monthly payment depends on a number of variables, including your budget and the non-exempt equity in your assets.

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Eligibility for Chapter 13 Bankruptcy

Anybody, even when self-employed or operating an unincorporated company, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $394,725 and secured debts are less compared to 1,184,200. 1 1 U.S.C. § 109(e).

All these numbers are adjusted periodically to reflect fluctuations in the consumer price index. A corporation or partnership might well not be considered a chapter 13 debtor. Id.

A person can’t file a chapter 13 or any chapter unless she or he has, within 180 days before filing, received credit counseling from an approved credit counseling agency either at an individual or group briefing. 1 1 U.S.C. §§ 109, 111.

There are exceptions in emergency situations or where the U.S. Trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to deliver the necessary counselling.

When your debt management program is developed throughout mandatory credit counseling, then it has to be filed with the court.

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