Bankruptcy Attorneys Serving Southern California

The Advantages of Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a viable option for individuals seeking debt relief. Also known as a wage earner’s plan, this chapter focuses on repaying your debts through a repayment plan that allows you to pay back your debts over a three to five year period. Here are some benefits of filing under this chapter.

Stop Harassing Phone Calls from Creditors

When you’re in debt, creditors have the right to call and ask for their money. They can also hire collection agencies to contact you on their behalf. Some agencies engage in questionable behavior, such as a constant barrage of harassing phone calls. But creditors and collection agencies are legally prohibited from contacting anyone who has filed Chapter 13. As soon as your creditors are informed of your filing, they are prohibited from making any collection efforts.

Stop Home Foreclosure

Filing Chapter 13 can help save your home from foreclosure proceedings. You may also gain the ability to cure your late mortgage payments. The cure amount is what you need to pay in order to bring the loan current. Having an experienced attorney on your side can make all the difference when it comes to home foreclosures.

Protect Assets from Creditors

Filing for Chapter 13 can assist you with protecting certain assets from creditors. This means your creditors can’t repossess items that you file under bankruptcy. Exempt items vary, from state to state and federal law defines which assets are included. Generally, items such as cars, clothes, furniture, and jewelry are protected under Chapter 13 bankruptcy.

Protection for Third-Parties

Under Chapter 13 bankruptcy, creditors can’t go after third-parties for your debts. This provision is in place to provide protection to co-signers. Normally, a creditor can contact a co-signer who signed for you to get a loan, credit card, or other assets. When you file for Chapter 13, your creditors are prohibited from contacting your co-signers for any reason.

The Importance of Legal Representation

Filing for bankruptcy on your own is a daunting task. Individuals who take on the courts alone are expected to know bankruptcy laws and the courts are not permitted to give legal advice. Hiring an attorney is the best way to avoid making costly mistakes that would otherwise be a detriment to your case. Without legal counsel, you may fail to understand certain rules and codes that are essential for a successful filing.

Contact the attorneys at Wadhwani & Shanfeld for help with your case. Call us today at (800) 996-9932 to schedule a free consultation.