Irvine, California Chapter 13 Lawyer

The Chapter 13 Bankruptcy Process

Chapter 13 may not be the most complex type of bankruptcy, but it’s by no means simple. You should be sure that your Chapter 13 attorney has the experience and skill necessary to understand what to expect and when throughout this complicated process.

In the Beginning…

You will begin by completing some paperwork regarding your bankruptcy and attend pre-filing credit counseling. The latter is a prerequisite to filing, and the purpose is to help you determine if you really need to file for bankruptcy (even if it’s obvious to you that you do). Once this is complete, you will file for Chapter 13.

At the time of filing, an automatic stay goes into effect. This prevents your creditors from trying to collect on your debt throughout the bankruptcy process. The court will then appoint a third-party trustee who will ultimately be responsible for collecting your payments and redistributing funds to your creditors – but that comes much later in the process.

Once your trustee has been appointed, the court will notify you and your creditors of the following matters:

• When the meeting with your creditors will take place
• When your creditors must file their claims
• Whether or not you filed a repayment plan
• When the confirmation hearing (when whether or not your repayment plan will be approved by the court) will take place

At this point, your creditors can file written objections to your repayment plan or even support it if they so choose. At least seven days before you meet with your creditors, you will need to provide your most recent tax return and other financial statements to the Chapter 13 trustee.

About 30 days after you file for bankruptcy, you’ll begin to make payments according to the repayment plan you and your Chapter 13 attorney developed. If it is ultimately rejected by the court, your money will be returned to you with some administrative costs taken out.

Customized Debt Repayment Plans

When you file for Chapter 13 bankruptcy, you have the opportunity to reorganize your consumer debt into a manageable repayment plan. Our experienced Irvine Chapter 13 lawyers can help you create a customized plan that fits your unique financial situation. This plan will typically last between three to five years, during which you will make monthly payments to a trustee who will distribute the funds to your creditors.

Benefits of a Chapter 13 repayment plan include:

• Protection from foreclosure or repossession
• Ability to catch up on missed mortgage or car payments
• Reduced interest rates on certain debts
• Potential discharge of remaining unsecured debts at the end of the plan
• Opportunity to keep valuable assets

At Financial Relief Law Center, APC, we understand that every client's financial situation is unique, and we are committed to providing personalized attention and guidance throughout the Chapter 13 bankruptcy process.