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 Overview

• 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.

Monthly Payment Amounts Explained

• 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.

Options for Secured Loans in Chapter 13

• 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.

Debt Limits for Chapter 13 Bankruptcy in California

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!