Irvine, California Chapter 13 Lawyer

Reorganize Your Consumer Debt in Orange County

You don’t have to lose everything, or even anything, in bankruptcy. One of the main things people fear when they think about filing for bankruptcy is losing their homes, cars, family heirlooms, and other possessions. That may be the case in a Chapter 7 bankruptcy, but there’s another option in Chapter 13 to reorganize your debt without liquidation.

Financial Relief Law Center, APC can help you explore your options in Chapter 13 bankruptcy. Available to individuals and even small business owners, this option can empower debtors to restructure their financial obligations to stop arrears from snowballing out of control and stop a foreclosure. We can help you develop a repayment plan that can help you satisfy your debt for less than it’s worth in three to five years.

For help with a Chapter 13 filing in Orange County, reach out to the Financial Relief Law Center, APC in Orange County. Contact us online or call (949) 570-5466 for assistance and a free consultation!

  • “I was directed to Andrew Warshaw at the Financial Relief Law Center. He was able to negotiate an agreement outside of court which saved me hundreds of thousands of dollars and prevented me from filing Chapter 11.”
    Elijah B.

Do I Have to Pay off All of My Debt in Chapter 13?

One of the biggest draws toward Chapter 13 is that the full value of your debt may not have to be paid off. As long as you fulfill the terms of your repayment plan throughout its duration, you can end up satisfying a significant amount of debt for much less than its value.

That said, not all debt can be reduced, and your creditors will have a chance to provide input on your payment plan before a bankruptcy judge decides to approve it or not. Generally speaking, only unsecured debt such as medical bills, personal loans, and credit card balances can be reduced in Chapter 13.

When it comes to debts secured by collateral, such as a car or home, falling behind on these payments can open you up to collections actions where the repossession of the car or home will satisfy repayment of the loan. If you haven’t fallen behind on secured debt payments, you might not be at risk of losing anything. If you have, filing for Chapter 13 can stop actions like foreclosure to give you a chance to stay current on your payments and catch up on paying off arrears (missed or partial payments).

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.

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What Sets Us Apart?

As attorneys who routinely support consumers in potentially dire financial straits, we are empathetic and compassionate about what these problems mean to our clients. More importantly, we’ve grown to understand how important it is that we only deliver our best possible work so our clients’ chances of getting the best possible outcome are secured.

  1. Free Consultations
  2. Constant Client Communication
  3. Solutions Fit for Your Unique Case
  4. 30+ Years of Combined Legal Experience

A Firm Focused on Personal Attention

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