Chapter 13 bankruptcy in El Centro
Chapter 13 bankruptcy enables you to retain your property, prevent foreclosure, and settle debts over time. Begin your financial recovery with skilled El Centro attorneys today.
Qualified Chapter 13 Bankruptcy Attorneys in El Centro
You can trust our Chapter 13 bankruptcy lawyers
Law Offices of Mark L. Miller are El Centro's premier Chapter 13 bankruptcy attorneys, with the experience and expertise required for your successful claim. We'll guide you through the process of restructuring your debt through this bankruptcy option. Achieve a fresh financial start by eliminating your debt and adhering to a structured repayment plan. Contact us today!
Reorganize Your Debts into Affordable Payments
Filing a bankruptcy case enables you to consolidate your bills into one manageable monthly payment. Initially, you'll need to meet with a lawyer who will assess whether Chapter 7 or Chapter 13 is more suitable for you. Our El Centro bankruptcy attorneys walk you through options for eliminating debt and assist you in deciding which solution is best for you.
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Chapter 13 bankruptcy is the ideal choice in specific scenarios
Review the situations in which Chapter 13 may be your optimal solution:
- You're behind on mortgage payments.
- You're facing eviction proceedings.
- You're about to lose your vehicle.
- You're dealing with tax balances.
- You're experiencing wage garnishments.
- You’re facing a Collection Lawsuit.
- You want to feel organized and get your finances in order.
- You want to reverse your debt situation.
This bankruptcy also enables you to consolidate all of your unsecured debt into one fixed monthly payment. The debts included in your monthly payment consist of credit cards, personal loans, medical bills, property taxes, and even income taxes.
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 prove that you have regular monthly income. The purpose of regular monthly income is to demonstrate to the bankruptcy court, Trustee and your creditors that you can manage the payments under your plan. On the positive side, multiple 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 below the limits established by the United States Bankruptcy Code. Secured debts and unsecured debts are calculated separately and must fall within the permitted amounts. These debt limits change every three years therefore it is essential that you consult with an experienced bankruptcy attorney to determine if you qualify.
Fourth, you need to be current 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 elapsed 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 comparable to debt consolidation or debt settlement, this chapter has numerous advantages over those other programs:
- Debt consolidation is not a legal process. The judge doesn't oversee the terms of creditor negotiations. In a debt consolidation, your creditors are not obligated to accept your settlement offer.
- Creditors and third party debt collectors can file lawsuits against you. The lawsuits are often the outcome of unsuccessful settlement negotiations between the consolidation company and your creditors. Additionally, you may not know that the creditors refused to negotiate and the lawsuit can arrive 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 lowering your monthly payments. Payment terms may be unaffordable. The fees for these consolidation companies are typically quite high.
On 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 organized into a single affordable monthly payment for 3 or 5 years.
Get help with your Chapter 13 bankruptcy case paperwork in El Centro
The required paperwork for this bankruptcy type can be daunting. The bankruptcy code imposes constant deadlines, court meetings, and significant red tape. That is why you need an experienced attorney who can navigate the Bankruptcy Court. Negotiating with the Trustee, filing your plan, managing creditors, and getting your case approved requires a Chapter 13 bankruptcy attorney who will advocate for you so you can move forward with your life.
Since bankruptcy law varies considerably from court to court, it is important to find an attorney who is knowledgeable about how the courts operate in your specific area. The attorneys at the Bankruptcy Law Offices of Mark L. Miller have 25 years of experience with bankruptcy courts and have helped over 12,000 clients regain financial freedom.