Do you need a break? Your financial situation is getting out of hand and you are overwhelmed by debt. Although you have a well-paying job, you may have overlooked your ability to pay all your creditors on time. Now your creditors are hounding you night and day, and you feel that it’s just a matter of time before you can’t take it anymore.
What you need is some breathing space, a chance to adjust your payments so that they can match your income. Chang & Diamond, APC, are your La Mesa bankruptcy attorneys who can analyze your debt, income, and assets. By so doing, they will guide you into how you can make more convenient payments to your creditors through debt consolidation.
Why Chapter 13?
The goal of Chapter 13 bankruptcy is to give the debtor an opportunity to resume a regular monthly payment plan, to pay off what they owe over a specified period of time. The United States Bankruptcy Code allows a maximum of five years to repay your creditors.
During this time, the court will protect you against any harassment or collection action from your debtors. Visiting the La Mesa bankruptcy lawyers today is the first step towards improving the quality of your life and well-being, until you can settle with your creditors. Otherwise, the calls and letters will not stop.
With our help, you can impose a plan on your creditors that will best serve to manage your debt. The creditors, in turn, have to comply with the plan and stop the generation of interest on credit cards or face the law. At the end of the three or five-year plan, any dischargeable debt that you were unable to pay is discharged.
Eligibility for Chapter 13 Bankruptcy
Deciding which bankruptcy to file for shouldn’t be on your plate. Let the bankruptcy attorneys at La Mesa do that work for you. However, for informational purposes, we thought you should know who is eligible to file under Chapter 13.
In this chapter, you are required to meet your monthly payments with your disposable income. Therefore, you must prove to the court your ability to meet the payment obligations. To be approved, your income must be regular and above a certain limit. Again, your debt load should not be too high, or you are ineligible. The court places a certain limit on both your secured and unsecured debt.
Did you know that some debts are of higher priority than others? Well, all this is information that the La Mesa bankruptcy attorneys use to give you the best counsel. Priority debts are so crucial that they come first in your repayment plan. They include alimony, unpaid employee wages, and some tax obligations.
Additionally, your payment plan should include regular repayments on your secured debts (mortgage and car loans) and in case you had fallen behind on payment, payment of arrearages. The plan also has to show that the net disposable income after paying for priority and secured debts goes to repaying the unsecured debts you owe.
The beauty of all this is that the La Mesa bankruptcy lawyers are by your side every step of the way giving you the best advice. Therefore, do not shy way from approaching us, and seek our advice to declare bankruptcy for it may be the best decision you ever made.