Chapter 13 Bankruptcy Insights: Eligibility, Duration, Expectations
Chapter 13, or the Wage Earner’s plan, is a type of bankruptcy which allows keeping your assets while drafting a plan to repay all your debts in a timespan of three to five years. As it represents a less extreme alternative to Chapter 7, this bankruptcy plan is often a solution debtors turn to. If you are wondering whether you qualify for Chapter 13 and how an experienced bankruptcy attorney in San Diego can help in the process, here is all you need to know.
Should I file Chapter 13 bankruptcy?
Filing for bankruptcy is a difficult time when your thoughts are racing, posing all sorts of questions. Will my bankruptcy go public? Do I have to hire a lawyer to file Chapter 7? How will I find an exceptional bankruptcy attorney in San Diego? Bankruptcy-related stress can negatively affect your health, but knowing what to expect and consulting a dependable, expert legal representative can make the situation a lot more bearable.
When should you consider filing for Chapter 13 plan? If you wish to save your Golden Hill family home, your car, or any other asset from foreclosure, this type of bankruptcy is a good fit for you. It will offer you an opportunity to repay your debts in monthly instalments, leaving you in control of your financial position for years to come.
How to know if you’re eligible to file Chapter 13
You can file this bankruptcy plan if:
- Your unsecured debts are under $394,725, and your secured debts are under $1,184,200;
- Your prior bankruptcy filings weren’t dismissed in the preceding 180 days, for some of the following reasons: failing to appear before the court, or failing to comply with the requested court orders;
- You haven’t received any credit counselling from an approved agency within 180 days before your bankruptcy filing.
How long does it take to file Chapter 13 bankruptcy?
The length of time your Chapter 13 case will take may vary. However, you can make plans based on this general timeline that corresponds with most Chapter 13 cases.
- After you file your petition, it will usually take up to 30 days to be summoned to attend the meeting of creditors.
- After the meeting of creditors, your appointed Trustee gets up to 30 days to supply any objection considering your petition.
- Within 45 days after the meeting of creditors, the confirmation hearing for your Chapter 13 case will be scheduled. Your court-appointed Trustee will recommend the approval or rejection of your petition. This is the time when your legal representative works out the details with the Trustee. Your attorney will make sure you comply with every requested court order, ensuring your case will be approved rather than rejected.
- Just before your plan approval, you will be obliged to take a financial management course.
- Once your payment plan is fully completed, which happens three to five years following your meeting of creditors, you will be granted bankruptcy discharge.
What happens when you file for Chapter 13 bankruptcy?
The moment you file for Chapter 13 bankruptcy, the period called “the automatic stay” takes effect. This means that filing for this bankruptcy plan protects your assets from foreclosure, even in cases when a mortgage sale is already scheduled. This is the reason why Chapter 13 bankruptcies are often referred to as the “emergency bankruptcies”.
Protect your San Diego assets and build a stable financial future
When there’s a lot at stake, risking your financial future even further can lead to critical outcomes. Although you are legally allowed to represent yourself when filing bankruptcy, the experts emphasize that hiring a reliable San Diego bankruptcy representative is the only genuinely safe course of action.
Contact the law offices of Chang & Diamond, experienced bankruptcy attorneys, and let us help you build a more secure future – starting today.