Chapter 13 bankruptcy in San Diego
Chapter 13 bankruptcy allows you to keep your property, stop foreclosure, and repay debts over time. Start your financial recovery with experienced San Diego attorneys today.
Qualified Chapter 13 Bankruptcy Attorneys in San Diego
You can rely on our Chapter 13 bankruptcy lawyers
Law Offices of Mark L. Miller are San Diego’s leading Chapter 13 bankruptcy attorneys, with experience and knowledge necessary for your successful claim. We will lead you through the process of reorganizing your debt through this type of bankruptcy. Get a fresh financial start by eliminating your debt and following a detailed repayment plan. Contact us today!
Reorganize Your Debts into Affordable Payments
Filing a bankruptcy case allows you to reorganize your bills into one fixed monthly payment. To begin with, you need to meet with a lawyer who will determine if Chapter 7 or Chapter 13 is better for you. Our San Diego bankruptcy attorneys guide you through options for getting out of debt and help you decide which option is best for you.
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Contact us today to schedule a confidential consultation. We’re here to answer your questions and help you take the first step toward a fresh start.
Chapter 13 bankruptcy is the best choice in certain scenarios
Take a look at the situations in which Chapter 13 may be your best option:
- You’re behind on house payments.
- You’re facing eviction.
- You’re about to lose your car.
- You’re struggling with tax balances.
- You’re having your wages garnished.
- You’re facing a Collection Lawsuit.
- You want to feel organized and get your finances in order.
- You want to turn around your debt situation.
This bankruptcy also allows you to combine all of your unsecured debt into one set monthly payment. Among the debts included in your monthly payment are credit cards, personal loans, medical bills, property taxes, and even income taxes.
How to qualify
First, you can only file for this bankruptcy as an individual. If you own a business, you can file a personal Chapter 13 but your business cannot.
Second, you must demonstrate that you have regular monthly income. The purpose of regular monthly income is to show the United States Bankruptcy Court, the Trustee assigned to your case, and your creditors that you can afford the payments proposed in your bankruptcy plan. The definition of “regular” income is very broad. For example, your income sources may include:
- Wages from your job
- Business income
- Unemployment compensation
- Spousal support
- Child support
- Royalties
- Social security payments
- Pension
- Property sale proceeds
- Disability pay
- Retirement account payments
- Contributions from family members
- Assistance from friends
- Bonuses
Third, your debt balances must be less than the limits set forth by the United States Bankruptcy Code. Secured and unsecured debts are calculated separately and must be within the allowed amounts. The debt limits change every three years, so it is imperative that you consult with us. Our experienced Chapter 13 bankruptcy attorney in San Diego will determine if you qualify.
Fourth, you need to be up to date with filing your income tax returns. Additionally, you must provide your last two years’ tax returns as part of your claim.
Lastly, at least two years must have passed since you filed bankruptcy under the same chapter. You need to wait at least four years after filing Chapter 7 bankruptcy before filing Chapter 13.
Qualifying for Chapter 13
First, you can only file for this bankruptcy as an individual. If you own a business you can file but your business cannot file for Chapter 13.
Second, you must demonstrate that you have regular monthly income. The purpose of regular monthly income is to show the bankruptcy court, Trustee and your creditors that you can afford the payments under your plan. On the positive side, several types of income are included in the definition of "regular" income.
Your income sources may include:
- Wages from your job
- Business income
- Unemployment compensation
- Spousal support
- Child support
- Royalties
- Social security payments
- Pensions
- Property sale proceeds
- Retirement account payments
- Contributions from family members
Third, your debt balances must be less than the limits set forth by the United States Bankruptcy Code. Secured debts and unsecured debts are calculated separately and must be within the allowed amounts. These debt limits change every three years therefore it is imperative that you consult with an experienced bankruptcy attorney to determine if you qualify.
Fourth, you need to be up to date with filing your income tax returns. You must provide your last two years’ tax returns as part of your bankruptcy claim.
Lastly, at least two years must have passed since you filed bankruptcy under the same chapter. You need to wait at least four years after filing Chapter 7 bankruptcy before filing Chapter 13.
Differences between Chapter 13 and debt consolidation
While Chapter 13 bankruptcy is similar to debt consolidation or debt settlement, this chapter has many advantages over those other programs:
- Debt consolidation is not a legal process. The judge doesn’t preside over the terms of creditor negotiations. In a debt consolidation, your creditors are not required to accept your settlement offer.
- Creditors and third party debt collectors can file lawsuits against you. The lawsuits are often the result of failed settlement negotiations between the consolidation company and your creditors. Also, you may not know that the creditors refused to negotiate and the lawsuit can come as a complete surprise.
- Your credit accounts must be past due before the debt consolidation company will even discuss reducing your monthly payments.
- Debt consolidation programs have a very high failure rate. As mentioned above, your creditors are under no obligation to accept a payment arrangement or even discuss reducing your monthly payments. Payment terms may be unmanageable. The fees for these consolidation companies are typically very high.
One the other hand, Chapter 13 bankruptcy is a legal process where a United States Bankruptcy Judge orders your creditors to accept an approved Court ordered plan of reorganization. Your creditors are bound by the terms of your confirmed plan. Furthermore, all of your debt is structured into a single affordable monthly payment for 3 or 5 years.
Get help with your Chapter 13 bankruptcy case paperwork in San Diego
The required paperwork for this type of bankruptcy can be overwhelming. The bankruptcy code imposes constant deadlines, court meetings, and a lot of red tape. That is why you need an experienced attorney who can navigate the Bankruptcy Court. Negotiating with the Trustee, filing your plan, dealing with creditors, and getting your case approved requires a Chapter 13 bankruptcy attorney who will fight for you so you can move forward with your life.
Since bankruptcy law varies significantly from court to court, it is important to find an attorney who is familiar with how the courts operate in your particular area. The attorneys at the Bankruptcy Law Offices of Mark L. Miller have 25 years of experience with San Diego bankruptcy courts and have helped over 12,000 clients regain financial freedom.