Consulting a chapter 13 bankruptcy lawyer Orange County for your repayment plan will give you a better insight on how you will deal with your creditors. A bankruptcy plan will include ways on how to repay your debts. You can pay in full or the partial amount.
Are You Eligible?
Chapter 13 repayment plans can run from three to five years. To determine your eligibility for this plan, you may need to undergo a means test.
For example, if your household income surpasses the median income for the geographic region, you could file a chapter 13 bankruptcy. The means test, however, will be performed by your chapter 13 bankruptcy lawyer in Orange County.
It is vital to remember, though, that not all debts can be wiped out. Some debts could not be discharged. These debts would include spousal and child support.
In most cases, student loans must be paid off. To know more about the debts that cannot be eliminated in bankruptcy, make sure to consult a chapter 13 bankruptcy lawyer.
Are There Advantages of Filing a Bankruptcy?
When you file bankruptcy, you are automatically protected from any type of collection activity. It stops repossessions, foreclosures and license suspensions, among others.
It can also halt any form of creditor harassment. However, the automatic stay may just be temporary. For that reason, it is best that you contact a bankruptcy lawyer to know how the automatic stay impacts your financial status.
Another benefit of filing a chapter 13 bankruptcy is that it protects your assets. These are the items that you own.
Excluded assets are items or properties that you can keep when you file. There are several exemptions in protecting your assets.
A chapter 13 bankruptcy lawyer in Orange County will analyze your financial situation to know the best exemptions appropriate for your case.
The Emotional Toll
Filing bankruptcy can negatively affect your self-esteem. It also impacts your financial future for many years to come.
If you think that you could not handle those consequences, your bankruptcy lawyer will give you other debt repayments that will suit your situation better with fewer negative effects.
When you do file a chapter 13 bankruptcy, it would be difficult for you to find a new house. Remember that most landlords will evaluate your credit reports.
They might not allow you to rent their property or building because of your past financial situation. To avoid this issue, however, you can ask a letter of recommendation from your previous landlord. You may also consider moving in with your family or renting from a friend.
Finding a job is also a lot harder. Most employers will evaluate your credit information. Bad credit could mean losing some job opportunities.
And if you are applying for an auto loan, your insurance premium may increase. Your premium will be high if you get a bad credit score.
To discuss your many options on how to deal with your debts, you may contact our chapter 13 bankruptcy lawyer in Orange County today. We offer a free consultation. All discussions are confidential. Now is the time to start conquering your debts. Call (949) 565-4707 or (818) 960-6460.