Most people have heard the term “bankruptcy” at least a few times in their lives. Nonetheless, the word “bankruptcy” is often associated with a Chapter 7 bankruptcy case in Los Angeles. However, a Chapter 7 case is not the only kind of bankruptcy that one can file. A Chapter 13 is often the alternative bankruptcy for individuals in Los Angeles. While some people choose to file a Chapter 13 bankruptcy in Los Angeles, others are required to file it because of assets they own, or because they are not eligible for a Chapter 7 bankruptcy case in light of their income levels. To determine if you qualify for a Chapter 13, or determine if Chapter 13 is the right option for you, we suggest you contact a qualified Los Angeles Bankruptcy Attorney.

The Goal of a Chapter 13 Bankruptcy in Los Angeles Is Different than a Chapter 7 Bankruptcy

Chapter 7 cases are designed to liquidate assets, and wipe out debt completely. On the other hand, the goal of a Chapter 13 bankruptcy is to wipe some portion of the debt and/or pay other debt over time. Additionally, in a Chapter 13, a Debtor is entitled to keep assets such as a home or a car. Further, any default in payments can be made-up throughout the Chapter 13 bankruptcy. In a Chapter 13, everything will be set forth in the “Plan” that must be approved by the Court. That Plan will lists how much and when creditors can get paid through the Chapter 13 bankruptcy case.

The Length and Process of Chapter 13 Bankruptcies in Los Angeles

Unlike Chapter 7 cases, Chapter 13 bankruptcy cases normally take anywhere between 3 to 5 years. During this time, you will be required to make monthly payments that will pay at least a portion of your debt to creditors. Normally, the amount of the payment depends on how much you earn and the amount of your debt. Prior to the bankruptcy filing, it may also take some time to prepare the bankruptcy documents and ensure that everything listed in the bankruptcy documents is true and correct. This is a process that a qualified Los Angeles Bankruptcy Attorney can assist with.

You Normally Do Not Have to Appear in Court, But Your Attorney Does

Most Chapter 13 bankruptcy cases in Los Angeles to not require the appearance of the debtor (the person filing the bankruptcy) at Court. However, every person that files a Chapter 13 bankruptcy must appear before a Trustee at a meeting called “creditors’ meeting” or a “341(a) meeting”. This meeting often lasts only a few minutes, and some of the goals of this meeting is for the Trustee to ensure that the debtor is eligible for a bankruptcy, that the debtor is not hiding anything from the Trustee and creditors, and that the debtor is aware of the bankruptcy documents that were filed with the Court and ensures that those are accurate. There may also be creditors that appear at the 341(a) meeting, but the appearance of creditors is rare. Your qualified Los Angeles Bankruptcy Attorney will then appear on your behalf at a hearing called a “confirmation hearing”, at which time the Court will determine if the proposed “repayment plan” that the debtor files is acceptable.

What Payments Will I Have to Make During the Chapter 13 Bankruptcy

In Chapter 13 bankruptcy cases in Los Angeles, the person filing the bankruptcy must make a plan payment that is paid to the Trustee. The Trustee, in turn, takes the money received and pays creditors (and himself/herself) in an amount set pursuant to the proposed Plan filed with the bankruptcy court. In addition to these plan payments, car payments and home mortgage payments also have to be paid.

Cost Involved With Filing a Chapter 13 Bankruptcy in Los Angeles

With regard to the amount that a Chapter 13 Bankruptcy will cost, there are two (2) items that a debtor normally has to pay for. The first one is “costs”, which include the Court fees, credit report fees, and debtor counseling fees. The other item are “attorneys’ fees.” Attorneys’ fees vary depending on the complexity of the bankruptcy, but the prices at Katz Law are known to be some of the most competitive in the market. Additionally, in a Chapter 13 we often accept some portion of the fees to be paid before the bankruptcy is filed, and the rest of the fees paid in installment payments after the bankruptcy is filed. If you would like to learn more about the costs and fees for filing your specific bankruptcy in Los Angeles, give us a call now at (310) 444-9444.

Want to Learn More About When You Should File a Bankruptcy, Consult With a Los Angeles Bankruptcy Attorney Now!

If you or your loved one is considering bankruptcy, give us a call now. We would be happy to talk to you. 

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