Bankruptcy is most commonly comprehended as a hopeless situation which leaves the debtor’s property up for grabs, and the debtor himself vulnerable and exposed before the creditors. Luckily, thanks to the Bankruptcy Code, the reality is much brighter. The Bankruptcy Code is a set of federal laws divided into several Chapters, and one of them is Chapter 13. This type of bankruptcy proceedings allows debtors to pay a portion of their debts or even all debts through a repayment plan. Do you have a regular income, but also a number of debts you’re struggling with? Book an appointment with the most reliable bankruptcy lawyers Escondido CA has to offer to get advice and legal information relevant to your specific case. For starters, here is some basic information on Chapter 13 bankruptcy, as well as an answer to the question every debtor asked themselves at the beginning of their legal journey: “How to find a trustworthy Chapter 13 bankruptcy attorney near me?”

What is Chapter 13 repayment plan?

Chapter 13 bankruptcy allows individuals with regular income to manage their debts and control the situation, keeping both their exempt and non-exempt property in the process. This is accomplished by forming a solid 3-to-5-year repayment plan, which consists of agreed-on monthly installments to be paid within the estimated timeframe. This type of bankruptcy is designed for individuals with regular monthly income who are struggling to make all debt payments within strict time limits. This is why Chapter 13 Bankruptcy is commonly referred to as “a wage earner plan”. “Would Chapter 13 bankruptcy attorney near me recommend this bankruptcy option, and why?” Let’s go through some basic Chapter 13 advantages and limitations.

Chapter 13 bankruptcy benefits

As mentioned, with Chapter 13 bankruptcy in motion, assets are protected from repossession or liquidation, which is usually the most important benefit for many debtors. The amount of debts that has to be paid over the years is determined in accordance with a debtor’s income, which is another advantage of the wage earner plan. If you file for Chapter 13 bankruptcy, the court will appoint you a bankruptcy trustee. This official will review the plan and monitor the payments, redirecting them to the appropriate creditors. This is yet another Chapter 13 plan benefit – a debtor does not communicate with the creditors, as the trustee manages those relationships, as long as the payments are made on time.

Chapter 13 plan restrictions

It takes between 3 and 5 years to repay debts, which most people find convenient. With the benefits, however, come a few restrictions:

  1. Chapter 13 bankruptcy remains on your credit card report for the following 7-10 years;
    2. Chapter 13 plan can make it more difficult to file for Chapter 7 in the future, while specific previous Chapter 7 dismissals may disable filing for Chapter 13 afterward;
  2. Some debts, such as mortgage lien, will still need to be paid after the repayment plan is completed.

Should I seek the help of a dependable Chapter 13 bankruptcy attorney near me?

Carrying out any bankruptcy plan requires a lot of thought, understanding the financial situation, and getting the appropriate legal support. This is why a “Should I seek the help of a dependable Chapter 13 bankruptcy attorney near me?” question must be answered with: “Yes, most definitely so.” An experienced bankruptcy attorney will help you stay on top of the situation, making sure that no piece of paperwork is missed or any debt aspect is overlooked. Our reputable and well-versed bankruptcy lawyers at Chang & Diamond, APC, have years of experience in the field. They will provide valuable assistance in drafting a functional repayment plan that will get your life back on track. Bankruptcy is not the end of you; it is your new beginning. Our attorneys are here to help you prove it.