Lancaster Chapter 13 Bankruptcy Attorneys
Proven Representation Focused on Your Future
If you are one of the millions of Americans grappling with insurmountable debt and financial fears, you can find the support you need with our bankruptcy lawyers at Wadhwani & Shanfeld. Over the years, our award-winning legal team has helped more than 20,000 clients across the Lancaster, Palmdale, and Southern California, and has handled thousands bankruptcy filings, including those involving Chapter 13 bankruptcy.
On This Page:
- What is Chapter 13 Bankruptcy?
- Is Chapter 13 Right for You?
- How Wadhwani & Shanfeld Can Help You
Known as the wage earner’s plan, Chapter 13 bankruptcy is often a debt solution for consumers who earn a regular income, and who have enough disposable income to make at least some form of payment toward pre-existing debts. Chapter 13 can be an effective option for consumers who wish to keep possession of certain property, including homes, and, like Chapter 7 bankruptcy, will still conclude with a discharge of remaining debts.
Because the decisions you make now regarding bankruptcy and how you navigate the process can make all the difference in your financial future, it is vital that you have proven assistance during your legal journey. Our attorneys at Wadhwani & Shanfeld are standing by to help you better understand your current situation and available options, as well as how we can leverage decades of combined experience and the expertise of our two Board-Certified Bankruptcy Specialists to help you obtain the financial fresh start you deserve.
The hallmark of Chapter 13 bankruptcy filings are the repayment plans. These plans allow consumers to make installments to creditors over three to five years. If you have regular income and the means to continue making payments toward debt, Chapter 13 may be an option. When it is, it is important to consider your goals and how filing under Chapter 13 may benefit you. For example, it may enable you to save your home from foreclosure, extend secured debts of the life of a plan (which can lower payments), and clear up obligations by consolidating debts into payments made to a trustee who then distributed payments to your creditors.
Before beginning the Chapter 13 process, you must attend credit counseling and debtor education from an approved agency. You must also understand the terms of your plan. This means understanding that priority debts, such as child support or tax obligations, must be paid in full. Regular payments will also be made toward secured debts, such as auto loans or mortgages. If there is disposable income left, it will go toward unsecured debts, including credit card debt. Unsecured debts do not have to be paid in full, or at all in some cases, during the life of your plan.
Debts remaining at the end of your payment plan will be eligible for discharge. This means you will no longer be required to make payments toward these debts, and will have the financial fresh start to begin rebuilding your credit and financial health. The length of your Chapter 13 repayment plan will depend on your unique financial circumstances. Consumers with an average monthly income over the median income in California will have to make a five-year plan, while those with lower income may choose a three-year plan.
At Wadhwani & Shanfeld, our legal team does not use a one-size-fits-all approach to handling cases. We know that every financial situation is different, which is why we work closely with clients and personally explore all of their available options. Our attorneys then work to help our clients understand whether they qualify for Chapter 7 or Chapter 13 bankruptcy, how they may benefit, and what we can do to make the process run as efficiently and effectively as possible.