Reorganizing Your Debt In A Chapter 13 Repayment Plan

If you are ineligible for a Chapter 7 bankruptcy, or want to ensure your most valuable assets are protected, then a Chapter 13 bankruptcy could be very beneficial to you. Chapter 13 bankruptcy will immediately stop the foreclosure or repossession, and all past due payments may be put into the Chapter 13 repayment plan and be paid over a couple of years. At The Law Offices of Joseph M. Tosti, we have over 30 years of experience helping those in Irvine and Orange County find the best debt relief plan for their needs.

In a Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court-appointed trustee. You will be required to pay back some or all of your debts over three to five years. The amount of the payment is based on the amount of your income and expenses, and in some cases is as low as $100 per month regardless of the amount of debt that you have.

For secured loans like home mortgage or vehicle loans, you have the option to pay these on your own, or you can put the loans into the plan and restructure the payments. Chapter 13 can also stop repossessions or foreclosures by allowing you three to five years to catch up on the back payments through the trustee. You also have the option to surrender the property to be relieved of the debt.

What To Expect When You File

Once the Chapter 13 bankruptcy is filed, the United States Bankruptcy Law prohibits all collection attempts and harassment by your creditors. Approximately 30 days after the Chapter 13 is filed with the court, you will be required to make one appearance in front of the court-appointed trustee and the judge. The court and the trustee need to make sure that you know and understand what payments will be required by you, and need to confirm that you have enough income to make those payments.

Once you have completed all the payments, the court will enter a discharge order which will relieve you of liability on all the debts in the plan.

The court cost to file a Chapter 13 case is $274. This must be paid by before the case is filed. The attorney fees for a Chapter 13 case will depend on the nature and complexity of the case. The fees must be approved by the court. Typically, a portion of the fee is paid before the filing of the Chapter 13 bankruptcy, and the balance of the attorney fee is paid through the Chapter 13 plan.

Schedule a free consultation with our lawyers to discuss your needs and receive a quote for any attorney's fees. Call 949-864-6276 or send us your information to get started.

We are a debt relief agency pursuant to Federal Law S524 of Title 11 of the US Code. The Law Offices of Joseph M. Tosti provides assistance and helps people file for bankruptcy relief under the United States Bankruptcy Code.