Lancaster Chapter 13 Bankruptcy Lawyers
It is not unusual for people to fall behind on repaying their debts. But while missing an occasional credit card payment may not be a catastrophe, if you are suddenly behind with all of your creditors–especially your mortgage or car payments–you can quickly find yourself in a downward financial spiral. And it may feel like there is no way to pull yourself out of this financial hole.
If that describes your current financial situation, filing for Chapter 13 bankruptcy may be a viable option. Wadhwani & Shanfeld is a team of dedicated Lancaster Chapter 13 bankruptcy lawyers who have helped thousands of clients in southern California restructure their debts so they can get current with their creditors. Attorneys Raj Wadhwani and Greg Shanfeld are Board-certified bankruptcy specialists who can review your unique situation and advise you on whether Chapter 13 is the right choice for you and your family.
How Chapter 13 Reorganizes Your Debts
The basic idea of Chapter 13 bankruptcy is that a debtor can restructure their existing debts into a three- or five-year repayment plan. Some debts are considered “priority” and must be fully repaid during the lifetime of the plan. But other debts can be reduced or discharged, meaning the debtor can walk away from them once the Chapter 13 process is completed.
Chapter 13 is designed for individual debtors with a regular income. If you are currently unemployed or lack sufficient disposable income to meet a Chapter 13 payment plan, you may be eligible for a Chapter 7 “liquidation” bankruptcy instead. And even if you are eligible for Chapter 7, there are cases where it may be in your best interests to file for Chapter 13, notably if you are looking to keep your home or other property with a secured claim on it. In fact, the main reason that many of our clients file for Chapter 13 bankruptcy is because it allows them to catch up on missed mortgage payments and stop the foreclosure process.
There are, of course, a number of potential disadvantages to filing for Chapter 13. The process takes several years to complete. And the bankruptcy itself will remain on your credit report for up to 10 years. There are also certain kinds of debts, such as alimony or child support, that cannot be reduced or discharged in Chapter 13. Still, depending on your current financial situation, Chapter 13 may still be your best option for obtaining long-term debt relief.
Contact Wadhwani & Shanfeld Today
The Chapter 13 process is rather complex. You need to come up with a payment plan that satisfies the court and federal bankruptcy requirements. This involves a fairly complicated set of calculations that must take into account your income and expenses, the total amount of your debts, and the value of any property you own. A qualified Lancaster bankruptcy attorney can guide you through this process and help you decide whether Chapter 13 is ultimately right for you.
Contact Wadhwani & Shanfeld today to schedule a consultation with a member of our bankruptcy team. We serve clients throughout Los Angeles County and southern California.