Irvine Chapter 13 Lawyer

Providing Bankruptcy Counsel in Orange County

A Chapter 13 bankruptcy is very beneficial to the debtor in those situations where an asset or assets need to be protected, such as when a house is in foreclosure or a car is out for repossession.

Chapter 13 will immediately stop the foreclosure or repossession and all of the past due amounts may be put into the Chapter 13 plan and be paid over a 3 to 5 year period.

Contact The Law Offices of Joseph M. Tosti online or call (949) 245-6288 for a free consultation with an Irvine Chapter 13 attorney. Conveniently located in Irvine, we serve clients throughout Orange County.

How Does Chapter 13 Work?

Repayment Plan

• In Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court appointed trustee. The debtor will be required to pay back some or all of the debts over a three to a five year period.

How Much Do I Owe Each Month?

• The amount of the payment is based on the amount of your income and expenses. In some cases, it may be as low as $100 per month regardless of the amount of debt that you have.

Additional Options for Secured Loans

• 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. You also have the option to surrender the property to be relieved of the debt.

Have more questions? Schedule a free initial consultation with our Chapter 13 bankruptcy attorney in Orange County.

How to Qualify for Chapter 13 Bankruptcy

In order to qualify for Chapter 13, you must meet the requirements:

• Your debts cannot be over the limits (valid through April 2022):
  • Unsecured debt limit: $419,275
  • Secured debt limit: $1,257,850
• You must have regular income.
• After certain expenses, you have enough disposable income to repay your debt and live comfortably.
• You cannot be behind on your tax filings.
• You cannot have filed for Chapter 13 within the previous 2 years.
• You cannot have filed for Chapter 7 within the previous 4 years.
• You cannot have attempted to file Chapter 7 or 13 in the previous 180 days that was dismissed by the bankruptcy court for specific reasons.

Not everyone can file for Chapter 13. If you make too much income, you may qualify for a Chapter 7. In this situation, the court will require that you pay back a portion or all of your debt. If you are unsure if you qualify, reach out to a bankruptcy attorney near you.

How Much Debt Do You Need for Chapter 13?

As written above, in the state of California, in order to qualify for Chapter 13 bankruptcy, debts may not exceed $419,275 in unsecured and $1,257,850 in secured. For further answers to your bankruptcy questions, get in touch with our Irvine attorney today!

The Chapter 13 Process

Once the Chapter 13 is filed, the United States Bankruptcy Law prohibits all collection attempts by your creditors including telephone calls. Approximately thirty 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 to make sure 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.

What Is the Chapter 13 Filing Fee?

The court cost to file a Chapter 13 case is $274. This must be paid 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. During your free consultation we will be able to quote you an exact fee.

Serving Orange County For 30+ Years

It is important to remember when choosing a bankruptcy attorney in Irvine, that not all attorneys have the requisite knowledge and experience in handling these cases. The Law Offices of Joseph M. Tosti has been committed to representing those consumers and businesses that have been suffering from severe financial hardship for over a quarter of a century.