Filing Chapter 13 Bankruptcy: Advice to Take | FilingForBankruptcyOnline.com

Filing bankruptcy under Chapter 13 is usually done by individuals with a household income greater than the median income for their state of residence. Another requirement is the court’s opinion that the filer has the ability to make minimal payments to creditors. California bankruptcy attorneys will usually counsel individuals with an extensive list of assets that they can also benefit from a Chapter 13 bankruptcy due to greater flexibility in terms of keeping those assets versus a Chapter 7 filing. Also referred to as “reorganization bankruptcy” Chapter 13 bankruptcies allow filers to use bankruptcy exemptions to keep a wide variety of real and personal property after the bankruptcy process is completed.

Starting the Bankruptcy Process

The process should begin with an initial consultation with a Chapter 13 bankruptcy lawyer to determine the assets to be retained by the filer and valuation of the items. The process starts officially with the filing of the bankruptcy petition and other required documents in court.

You should be sure to work with a Chapter 13 bankruptcy lawyer to make sure that your bankruptcy filing is done correctly and completely. Filing bankruptcy will stop all collection efforts while the bankruptcy is in progress. In terms of a wage garnishment, bankruptcy can lift that as well, once the bankruptcy petition is filed.

Creating and Submitting a Repayment Plan

In a Chapter 13 bankruptcy, a payment schedule will be submitted by you and your Chapter 13 bankruptcy attorney. The plan must be approved by your creditors and the court. The schedule is based on a determination of your ability to make payments over an extended period of time. The typical benchmark is usually set at 25% of balances due but setting a schedule which will be approved by both the court and your creditors takes the skill of a California bankruptcy attorney to navigate the process.

Usually, an approved payment plan will have debt balances which are steeply discounted or discharged completely by the court. The monthly amount payable as set in the plan is based on disposable income remaining after a list of court approved expenses.

Financial Planning and Legal Strategy

A Chapter 13 carries some risk because it can result in the surrender of assets to satisfy creditors if planning and asset valuations aren’t done prior to filing bankruptcy. Prior to filing a Chapter 13 petition, the California bankruptcy attorneys at Zhou & Chini will consult with you regarding all aspects of the filing including your assets, income, expenses, and liabilities. This preparation allows us to create the most advantageous strategy possible in order to take advantage of every opportunity provided by the Chapter 13 bankruptcy code.

We always start the process with the offer of a free and confidential consultation with one of our attorneys to see whether filing a Chapter 13 bankruptcy is the best action to take on your behalf. If another option can serve you better, we’ll advise you on that as well. At Zhou & Chini, we pride ourselves on delivering the best solutions for your financial issues. To schedule a free consultation, visit zhouchinilaw.com or call (800) 972 9600.

From the author: California Chapter 13 Information

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