An Experienced Advocate Helping You Seek Debt Relief Through Chapter 13 Bankruptcy
Insurmountable debt is not an easy reality to face. While debts accrue and may feel overwhelming, rest assured that you always have legal options to get out of your financial mess. Chapter 13 is one such way to wipe away your debts with a structured plan. Attorney Danny Agai can help you file Chapter 13 and save your home from foreclosure while protecting your financial future. He has helping clients with bankruptcy cases for more than a decade, including former nonprofit work filing Chapter 13 for indigent clients. The Law Offices of Danny K. Agai is personally committed to helping clients emerge from financial turmoil and has the success rate to prove it.
Who Can File Chapter 13?
Chapter 13 bankruptcy, also known as a “wage earner’s plan,” is a bankruptcy option that allows individuals with regular income to develop a repayment plan to repay all or most of their debts in installments over three to five years. The duration of the repayment plan will depend on the debtor’s median income.
Anyone with a steady income may pursue Chapter 13 if their unsecured and secured debts meet the following limits, according to 11 U.S.C. § 109(e):
- Unsecured debts – less than $394,725
- Secured debts – less than $1,184,299
The debtor must be ready to prove to the court that they have a “steady income” by showing they can afford to meet their monthly household obligations and pay into a repayment plan. Note that a person cannot file Chapter 13 if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to their willful failure to appear before the court or comply with orders of the court.
Chapter 13 Can Help You Keep Your Important Assets
One of the most important benefits of filing under Chapter 13 is saving the home from foreclosure. When the automatic stay is enacted, foreclosure and other collection actions must cease. This gives you time to catch up on missed mortgage payments and work out a plan to continue paying.
Chapter 13 also allows individuals to reschedule secured debts (other than a mortgage for their primary home) and extend them over the course of the repayment plan, helping to lower the payment amounts. Thankfully, Chapter 13 doesn’t require debtors to have direct contact with their creditors. Instead, they make payments to their assigned trustee who then distributes payments to the creditors.
Documents And Paperwork Needed In A Chapter 13 Filing
To begin the filing process, the debtor should present a certificate proving that they have received mandatory credit counseling education from an approved agency. This shows that the debtor has sufficient income to repay their creditors in a repayment plan. According to the U.S. Bankruptcy Code, the following should also be filed with the bankruptcy court:
- Schedules of assets and liabilities
- A schedule of current income and expenditures
- A schedule of executory contracts and unexpired leases
- A statement of financial affairs
- Any debt repayment plan developed through credit counseling
- Evidence of payment from employers, if any, received 60 days before filing
- A statement of monthly net income and any anticipated increase in income or expenses after filing
- A record of any interest the debtor has in federal or state-qualified education or tuition accounts
The debtor must also provide their case trustee with a copy of the tax return or transcripts for the most recent tax year as well as tax returns filed during the case.
Creating A Repayment Plan
The core of the Chapter 13 process lies in the repayment plan and confirmation hearing. The plan should be filed with the court, and the creditors and trustee may agree or object to your plan. The court may then approve the plan at the confirmation hearing if it meets all of the following requirements:
- The plan is feasible (the debtor can make the payments).
- The debtor proposed the plan in good faith.
- The plan complies with bankruptcy law.
Some examples of debts to repay in a Chapter 13 plan include:
- Priority debt, such as child support, alimony, and most tax obligations
- Secured debt (debt backed by collateral), particularly if the debtor intends to keep their car or home
- Unsecured debt, such as credit card balances and medical bills (these do not necessarily have to be fully repaid)
- The value of any nonexempt property if they can afford to keep the property
The filer will have all their debts wiped out once they make all their payments over the course of three to five years.
Speak To An Experienced Attorney About Your Bankruptcy Options
While it is possible to file Chapter 13 on your own, individual filings have much lower success rates and will put an undue amount of stress and anxiety on you as you try to make sense of all the legal jargon while still trying to balance the financial chaos around you. Attorney Danny Agai has over a decade of experience helping clients save their homes from foreclosure and proposing strong repayment plans to wipe away their debts. Let the Law Offices of Danny K. Agai help you get the fresh start you deserve with Chapter 13 bankruptcy.
The firm is located in Valley Village, California, and serves clients in North Hollywood and throughout the Los Angeles area. To take advantage of a free initial consultation, you can contact the firm online or call 818-867-3697. Se habla español.
This firm is a debt relief agency. Attorney Danny Agai helps people file for relief under the Bankruptcy Code.