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.
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 foreclosure of your San Diego property.
- 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.
- You’re sick of debt collectors harassing you.
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
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.
We're here to help you file your bankruptcy
Text us at (619) 574-0551 or call us at (619) 574-0551!
Frequently Asked Questions
The purpose of a Chapter 13 bankruptcy is to consolidate and reduce the debt to one monthly payment over a 3-5 year period of time to pay off, at least, a portion of your debt. You have to file a Chapter 13 if you have assets you want to keep but would lose in a Chapter 7, you have debt which can only be dealt with in a Chapter 13, or you have too much money left over at the end of the month and can afford to pay off at least some of your debt over time.
The purpose of a Chapter 13 bankruptcy is to consolidate and reduce the debt to one monthly payment over a 3-5 year period of time to pay off, at least, a portion of your debt. You have to file a Chapter 13 if you have assets you want to keep but would lose in a Chapter 7, you have debt which can only be dealt with in a Chapter 13, or you have too much money left over at the end of the month and can afford to pay off at least some of your debt over time.
Yes, it is as it brings several important benefits:
- Firstly, keeping your home in San Diego from foreclosing is the most beneficial reason for filing a Plan of Reorganization. The past due balance on your mortgage loan will be restructured into your monthly plan payment. Meanwhile, you retain your home and keep it out of foreclosure.
- Another positive is that your debt will be restructured into one fixed monthly payment. You will not have to pay multiple payments every month. Instead, your creditors will be paid each month by the Bankruptcy Trustee appointed to your case by the United States Bankruptcy Trustee.
- Your payments will be set for a period of 3 or 5 years. To determine the length of your plan, your monthly income will be calculated using the "means test". If your income is higher than the "median income" for your household size, your payments will be structured over 5 years. If your income is below median, your plan length will be 3 years.
- Unsecured debts are not paid any interest in a Chapter 13 plan. This amounts to potentially thousands of dollars of savings on interest alone.
- Another reason to file bankruptcy under this chapter is the ability to reduce the balance owed on your vehicle loan. Process called a "cram down" (only available through a Chapter 13 filing) can reduce the balance owed on your vehicle loan. Using the "cram down" you can also reduce the interest rate on your vehicle loan.
Not to mention that you will begin rebuilding your credit!
There isn’t a minimum amount of debt you should have incurred to qualify for Chapter 13 bankruptcy. However, there are limitations regarding the maximum amount of debt allowed for a successful plan or case.
The allowed maximum amount for secured debt is $1,257,850 and $419,275 for unsecured debt. Note that these amounts are strictly enforced and miscalculating them can result in the dismissal of your case. However, even if you exceed debt limitations, you can still attempt to file Chapter 11 bankruptcy in San Diego.
Law Offices of Mark L. Miller will help you calculate the maximum debt amount and advise you on the best course of action.
You will not lose your property if you can afford to keep making the monthly payments designated in your bankruptcy plan. That is why you need experienced Chapter 13 bankruptcy attorneys in San Diego to outline a sound repayment plan. Law Offices of Mark L. Miller will design a unique plan for your particular situation.
Law Offices of Mark L. Miller are your reliable bankruptcy attorneys who are able to help you with all the aspects of your case, whether you’re thinking about filing Chapter 7 bankruptcy or Chapter 13.
We will explain the important aspects of the bankruptcy process, handle all the paperwork for you, and file it to ensure your claim is successful. We want you to get out of your debt and regain financial freedom. Reach out to us today and begin your financial recovery!
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