When someone files for Chapter 13 Bankruptcy, they can reorganize their debts into a repayment plan that the court supervises. While this may help in some cases, it does not erase all debt obligations, so interest continues to accumulate on certain types of loans. If you have assets with equity greater than your exemptions under state law, these will be liquidated and used towards paying back creditors according to value.
It is important to note that when considering filing for Chapter 13 bankruptcy, you must have a stable income and be willing to pay back your creditors over time. For this type of bankruptcy filing to work in your favor, the court requires you to enter into a repayment plan with all of your unsecured debt holders that is agreed upon within three months after filing or six months if there are secured debts involved. Once approved by the courts, payments made under Chapter 13 filings will go toward paying off certain types of loans while other obligations such as child support and taxes continue on their own separate path. The term for this form of bankruptcy runs from three years to five, depending on how much disposable income you make monthly.
How to find the right chapter 13 bankruptcy attorney
An experienced Chapter 13 bankruptcy attorney can guide you through the process of filing Chapter 13 bankruptcy and making sure that all deadlines are met, filing fees paid and completed repayment plans filed on time. When it comes to hiring a reputable chapter 13 bankruptcy attorney Los Angeles, who is an expert in this type of law, here’s what you need to look for:
- Strong litigation skills
The attorney should be able to successfully litigate your case on behalf of you and get the results that will best serve your interests.
- A track record for success
The attorney’s practice should have a solid, successful track record in representing people just like you who are filing Chapter 13 bankruptcy cases.
- An ability to communicate effectively with clients
A good chapter 13 bankruptcy attorney must be equipped with excellent communication skills so he or she can easily explain all aspects of this type of law and financial situation to their clients while maintaining confidentiality at the same time.
Matters to do with bankruptcy law are extremely complicated, and it’s important to have an attorney with the right experience in this area. Furthermore, the best chapter 13 bankruptcy lawyer will know all there is about local bankruptcy laws. How they work, when you can file for Chapter 13 or some other type of insolvency action that may be more suitable according to your situation, what types of assets are protected by exemptions etc. If possible, get referrals from friends who have had successful experiences working with a good lawyer before. Find out if he or she offers free initial consultations so you can ask any questions you might have on your mind at no risk whatsoever.
In conclusion, finding the right chapter 13 bankruptcy attorney is a crucial step to take in order to save your home, car or other types of collateral against the debt.