Many people in Los Angeles will be waking up today to bills and debt demands that they can’t satisfy. For many of them, tucking those bills into the drawer and trying to forget about them might seem the easiest way to make your money troubles go away, but there will come a time when debt collectors are at the door, and you are facing civil claims and legal proceedings. If you come to this point, then you may decide that bankruptcy is the only solution to your financial problems, and that you need someone who can help you to cope with this. A Chapter 13 Bankruptcy Attorney in Los Angeles can help you to cope more effectively with your debts, so that you don’t end up in a black hole financially.
Understanding Chapter 13 bankruptcy
If you don’t have much knowledge of financial law, then you might have started the process thinking that bankruptcy is a single thing, and there is only one way to manage it. However, if you are in a position where paying off your debts could still be an option, then your lawyer might recommend a Chapter 13 bankruptcy instead. This is a very specific type of bankruptcy, where you are acknowledging your debt, and making a promise to pay some money over a particular period of time. If you have a type of debt that can be discharged after a Chapter 13 agreement, then you can really benefit from this plan.
Discharging your debts
The law requires that you be allowed to make some payments towards a debt over a certain number of years, and that the debt shall then be considered as discharged. This process applies only to a few debts, including credit card and medical debts. So, for example, if you are in financial trouble with your mortgage broker, then this is the wrong type of bankruptcy for you. However, if you have maxed out your cards, and now cannot pay, or broke your leg a few years ago and are now facing a mountain of hospital bills, then you can reach some kind of agreement with the company, and your lawyer will negotiate that bill for you.
Making a plan
This proposal to repay is a hallmark of the chapter 13 bankruptcy plan. In order to achieve this plan, you and your lawyer will have to work together to agree a financial plan that meets the guidelines required by law. For example, your repayment plan will be built upon two pillars: the value of your assets that are not protected through exemptions, and the disposable income that you have available after covering housing, food and other expenses. If you have an income that is no more than the median income for the state, then you may propose a three-year payment plan. However, if you earn more than this, then you must pay your debts for five years.
Getting through the process with a Chapter 13 Attorney in Los Angeles
For many people in LA, the idea of employing a bankruptcy lawyer may fill you full of dread. You may believe that you will be taking on more debt, not lessening your burden, but in fact we would always recommend that you make use of a bankruptcy lawyer when trying to negotiate with a bankruptcy trustee, or the legal system. Having a lawyer can be the best way to ensure that you get a good outcome, as it has been shown throughout the US. People trying to fill in the forms by themselves make legal errors that cost them money. In some cases, often in LA, people are taken in by ‘petition preparers’, who don’t follow the bankruptcy laws to the letter, and therefore put you at risk of being exposed to unexpected debts. Making sure that you get a professional, skilled, lawyer, is the only way to make sure that you can get what you need from the process, and avoid making costly errors that could result in you owing even more.
Avoid mistakes with a professional team
When you are applying for bankruptcy, only an experienced law firm like Karine Karadjian can help you. Our teams are specially experienced in handling bankruptcy claims, so that we can work with you to negotiate the best bankruptcy deal for your circumstances. Avoid making mistakes or trying to complete the forms today, and make sure that your Chapter 13 plan is correct and fully agreed by putting your trust in us. We will help you to recover your financial situation, and ensure that you don’t lose everything by trying to meet your debts. You can talk to us today by calling 949-565-4707, or you can email us using our online form now.