San Diego Chapter 13 Bankruptcy Attorney

Reorganize Your Debts into Affordable Payments

When you fall behind on payments, filing a Chapter 13 bankruptcy allows you to freeze debt collection and catch up with payments over time. You can keep your house, car, business, career, and job and make manageable payments over time. Chapter 13 sets up a repayment plan you can afford and allows you to be in control. The Law Offices of Mark L. Miller in San Diego can help.

Is Chapter 13 Bankruptcy Worth Filing?

Chapter 13 may be better than filing for Chapter 7 because you still have an income and do not have to liquidate your personal assets. Chapter 13 allows you repay a portion of your debt over time ( 3 - 5 years ) while the Bankruptcy Court protects you from collection actions. It is important that you consider any alternatives before filing and give a considerable amount of thought to it.

Consider Chapter 13 if you are:

• Behind on house payments
• Facing foreclosure
• Facing eviction
• About to lose your car
• Struggling with owed taxes
• Struggling with a wage garnishment
• Facing a Collection Lawsuit
• Feeling like you should be able to afford your debt
• Wanting to feel organized and that you are taking care of your finances
• Wanting to turn around your debt situation
• Sick of debt collectors

Chapter 13 bankruptcy can also allow you to combine all of your debt including credit cards, property taxes, and income taxes into one set monthly payment. You can even use it to refinance your auto loan into only what the car is worth—rather than what you owe—to reduce monthly payments and the interest rate.

Qualifying for Chapter 13

First, you can only file for Chapter 13 as an individual, not a business. You must demonstrate that you have regular income and therefor can repay your debts.

Your sources of income can include:

• Unemployment compensation
• Royalties
• Social security payments
• Pensions
• Property sale proceeds

Additionally, you will need to submit proof that you are current in your tax filings for the past four years. Your secured and unsecured debts also cannot exceed certain limits, which change every three years.

Chapter 13 vs. Debt Consolidation

Chapter 13 has many advantages over debt consolidation, which is not a legal process. Creditors are not required to agree to any proposal you make when lowering your payments, making solutions shaky. On the other hand, Chapter 13 is a legal process where the U.S. Bankruptcy Court orders creditors to accept an approved Chapter 13 plan of reorganization. All debt is lumped into a single, fixed, affordable monthly payment for three or five years.

The required paperwork in a Chapter 13 can be overwhelming with constant deadlines, court meetings, and red tape. You need an experienced attorney who can navigate the Bankruptcy Court, negotiate with the Trustee, deal with creditors, and ultimately get your case approved so you can move forward with your life.