Chapter 13 Bankruptcy Attorneys in Los Angeles

Chapter 13 is a debt reorganization plan for people facing significant debt who have a high income. This is different from Chapter 7, in which debtors do not earn enough to reliably make repayments.

In this type of bankruptcy, certain debts must be repaid in full, while others may be consolidated or even dismissed. An OakTree Chapter 13 lawyer can:

• Ascertain whether your debt qualifies for Chapter 13 relief
• Help you understand what is and is not dischargeable
• Assess your ability to repay under a reorganization plan
• Negotiate the best possible repayment terms
• Protect your assets from creditors

The court will determine how much of your debt will be discharged and implement a monthly repayment plan based on what you owe and what you earn. You’ll be permitted to meet necessary expenses, but excess income will go toward your obligation. The repayment plan typically lasts 3-5 years. When you successfully complete the plan, eligible remaining debts will be discharged.

Most people choose Chapter 13 bankruptcy as a means to hold onto their homes and other valuable assets as their debt problems are resolved. If you are carrying a second mortgage or home equity line of credit, you may also qualify to have those dismissed. Consult with an OakTree attorney to ensure your mortgage payments are covered under your Chapter 13 bankruptcy and to discuss your options.

With court approval, you may be able to secure a vehicle loan or mortgage after filing for Chapter 13 bankruptcy. Reach out to an OakTree attorney for a FREE case evaluation to review this and other short- and long-term impacts of Chapter 13 bankruptcy.

Chapter 13 bankruptcy is often better for people whose debts can’t be discharged through Chapter 7. It enables a repayment plan for income tax debt, domestic support obligations, student loans, and other qualifying debts. Chapter 13 filers aren’t subject to the income limits of Chapter 7 (which is more suited for low-income earners). Individuals and sole proprietors can file for Chapter 13 bankruptcy.

Taxes, alimony, child support, court costs, and attorneys’ fees must be repaid in full. Most other claims, credit cards, medical bills, and other unsecured debts do not have to be repaid in full, and may be fully discharged. An experienced Chapter 13 bankruptcy attorney can help you identify as many eligible debts for discharge as possible.