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Chapter 13 Bankruptcy

Accomplished Chapter 13 Bankruptcy Lawyer Serving the Greater Los Angeles Area

If you are employed with steady income but still grapple with how you are going to pay your bills each month, you do not need to feel trapped in a cycle of debt. Chapter 13 bankruptcy is a viable option for you. Chapter 13 bankruptcy allows you to restructure your debt in order to make it easier to keep your home and pay your bills over a three to five year period of time. A knowledgeable bankruptcy attorney like Kourosh Pourmorady can help you understand the bankruptcy process and determine if Chapter 13 is the right course of action for you.

The Law Offices of Kourosh Pourmorady has been servicing bankruptcy clients for over 47 combined years in the Los Angeles area. Kourosh Pourmorady is a renowned bankruptcy expert, both in Los Angeles and nationwide. He has been invited to speak at numerous conferences, has shared his expertise on CNN as a commentator, and has been nominated for various bankruptcy and legal awards. The Law Offices of Kourosh Pourmorady is dedicated to providing you with a specialized and personalized level of representation that is unrivaled in the business. We do not discriminate based on size of case or level of income. Contact The Law Offices of Kourosh Pourmorady today at (866) 666-6529 to begin the bankruptcy petition process.

Chapter 13 Overview

Chapter 13 is targeted towards individuals who make a steady income but still struggle with high debt loads. Chapter 13 is reserved for individuals only. Businesses must file under another chapter. Individuals who make too much money to qualify for discharge under Chapter 7 are permitted to file under Chapter 13 and enter into a repayment plan.

Chapter 13 is designed to assist both the debtor and his or her creditors. The debtor and the creditors agree on a repayment plan that is spread out over 3 to 5 years based on the debtor’s ability to pay and the debt load. The debtor may receive a discount on the interest rate or a reduction in principle. If the debtor successfully makes all timely payments required by the plan, any remainder balances will be forgiven. The debtor is then able to start anew and acquire new credit.

In determining whether the repayment plan is 3 or 5 years long, the bankruptcy judge will compare the debtor’s income to the state median. If the debtor’s income is more than the state median, the plan will last for 5 years. If the debtor’s income is under the state median, the plan will last for only 3 years.

Chapter 13 is the best form of bankruptcy for those seeking to save their homes. Individuals can halt foreclosure proceedings and can include their mortgage in the debt repayment plan in order to fix delinquent payments and provide for current and future payments in a timely manner.

In addition, debtors can lower monthly payments by spreading out the life of the loan over the length of the repayment plan. This assists individuals who struggle with monthly expenses that exceed their current income level.

Unlike Chapter 7, which provides for a complete discharge of certain debts, Chapter 13 is more akin to a lump sum loan with favorable conditions. One payment into the plan will then be disbursed to creditors in fixed amounts on dates specified in the plan.

Eligibility for Chapter 13

Chapter 13 is available for individuals only. If you have less than $383,175 in unsecured debts and $1,149,525 in secured debts, you are eligible for relief under Chapter 13. Within 180 days prior to filing your petition, you must receive credit counseling. Any debt management plan drafted by the credit counselor must be included with your petition.

If you have filed for bankruptcy and then voluntarily withdrawn your petition or if you have filed but failed to appear for a hearing within the past 180 days, you must wait to re-file.

Seeking Chapter 13 Assistance? Contact Us Now

Taking the step towards filing for Chapter 13 is a big decision. The Law Offices of Kourosh Pourmorady understands the stress and anxiety caused by exorbitant debt loads and wants to assist you with starting over with a clean slate. Our skilled bankruptcy attorneys can help you understand the different types of bankruptcy and which form best fits your financial situation and goals. Call The Law Offices of Kourosh Pourmorady today at (866) 666-6529 for a free bankruptcy consultation.