San Diego Chapter 13 Bankruptcy Lawyers
Repay Your Debts Through Affordable Payment Plans
Are you feeling the overwhelming weight of accumulated debts gathering on your shoulders? Especially amid a growing recession, many individuals have become stressed and anxious as their salary and savings decrease on account of the poor economy, which has been even further affected by the terrible consequences of COVID-19. When it feels like your pile of debt has become a volcano ready to erupt, you need to know there is hope.
Our Chapter 13 attorneys in San Diego can support you in an application for bankruptcy, which provides immediate relief to those suffering from growing arrears on mortgage payments or car debts. At Debt Relief Legal Clinic, our team is dedicated to offering you a lifeline from crippling collections from creditors through the bankruptcy process.
Call Debt Relief Legal Clinic at (619) 639-9228 or contact us online for a personalized, effective plan to resolve your financial stress.
How Does Chapter 13 Work?
One of the common terms for Chapter 13 is that of a “reorganization” bankruptcy strategy, also called a “wage earner’s plan.” This is because those who file for Chapter 13 usually still have a steady source of income, but one that is simply not enough to help you get rid of all your debts immediately.
When you file for Chapter 13, your skilled Chapter 13 bankruptcy lawyer will mediate between you and your creditors to first seek opportunities to decrease the amount of payment due. Then there will be a negotiation of your plan of payment. Rather than trying to scrape up enough funds to pay a large sum every month, the monthly payment can be greatly reduced into more manageable, bite-sized chunks.
Am I Eligible for Chapter 13 Bankruptcy?
There are a number of requirements that are necessary to begin the process for this bankruptcy plan. Your knowledgeable lawyer can also help you determine exactly whether you fit the required attributes.
The eligibility requirements for Chapter 13 include:
- Applying as an individual, since no corporations or partnerships are allowed
- Receiving a reliable, steady income which has at least a slightly larger amount of earnings than what you typically spend on living costs
- Possessing unsecured and liquidated debts which total less than $383,175
- Having secured debts that amount to being less than $1,149,525
How Can Chapter 13 Help Resolve My Debts?
The decision to file for Chapter 13 bankruptcy can be tough, as many people worry about what it can do to their credit and ability to get loans in the future. However, continuing to remain in debt can be even more damaging to your credit and keep you in a cycle of debt for a longer period of time.
Filing for Chapter 13 can be an effective form of debt relief that comes with several benefits:
- You can save your home from being foreclosed on, allowing you to catch up on back payments.
- You may be able to modify your current mortgage payments to make them more manageable for you.
- You can tackle tax debts and create a repayment plan to avoid ongoing penalties.
- You can catch up on your car payments and stop repossession.
- You only repay a portion of your unsecured debts, and can have the remaining discharged.
If you are still unsure about filing for Chapter 13, feel free to contact our team for more information on whether it is a right choice for you. Or, if you qualify for Chapter 7 instead, we can review your eligibility.
Call a Chapter 13 lawyer in San Diego from Debt Relief Legal Clinic at (619) 639-9228.
How Are Chapter 13 Repayment Plans Calculated?
Each payment plan will be different, and is based on what you can afford to pay monthly.
When creating your repayment plan, you must factor in:
- Disposable income - The higher your disposable income (your monthly income minus your necessary expenses), the higher your monthly plan will be.
- Debts - You must include all of the debts that you need to repay, including priority debts (alimony, back taxes, child support) and unsecured debts.
- Length of plan - Most payment plans last between 3 to 5 years, depending on how much debt you have to repay.
Make sure that you work with an attorney to help you determine a manageable plan. Our attorneys can review your finances, income, and debts to help you determine an effective debt relief solution.
How Do I Know If I Should File for Chapter 13?
If you are wondering whether Chapter 13 bankruptcy is an option for you, there are several indicators that can let you know if this payment relief plan will suit your individual needs.
Some of the scenarios where Chapter 13 is the optimum choice are when you:
- Owe debts which are unable to be forgiven and discharged under Chapter 7, including settlements for child support, marital property, or taxes
- Have been forced to experience liens that are larger in monetary value than the property or object being used for debt security
- Need to fulfill loan requirements for your retirement, which are barred from Chapter 7 payment plans
- Have been falling behind or completely unable to pay your mortgage or automobile payments, and are facing foreclosure or repossession
Get Personalized Debt Solutions from Certified Bankruptcy Attorneys
At the Debt Relief Legal Clinic, our dependable attorneys are dedicated to giving you the support you need. Unlike most San Diego Chapter 13 lawyers, our entire team is fully Certified Bankruptcy Specialists. You can count on our experience to help you no matter what the challenges are surrounding your application.
Contact us now at (619) 639-9228 to experience a wave of financial relief from your debts through a Chapter 13 bankruptcy plan. Schedule your free case consultation today.
Why Choose Debt Relief Legal Clinic?
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Attorney John C. Colwell has been recognized by the State Bar of California as one of 12 certified legal specialists in San Diego County for Bankruptcy Law.
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Our attorney has over 35 years of experience and has dedicated the firm to consumer bankruptcy.
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Our legal team is bilingual and serve our clients in English and Spanish.
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John C. Colwell has been a member of NACBA for 25 years and is the Immediate Past President.
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We are a family-oriented business, committed to helping you get relief from debt.
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We offer free consultations and take online payments for your convenience.