The United States is going through an unprecedented time of economic turmoil, and as a result, the finances of millions of Americans have plummeted dramatically. In light of this, many have resorted to bankruptcy to get rid of their debts and have a chance for a fresh financial start. The vast majority of people go through two chapters of bankruptcy depending on their situation; those who want to get out of debt quickly and don’t mind having to sell some of their assets to do so, turn to Chapter 7 bankruptcy; while those who want to pay off their debts without having to put their assets at risk prefer Chapter 13 bankruptcy.

Chapter 13 bankruptcy, also known as wage earners’ bankruptcy, is the ideal alternative for those who want to eliminate their debt without having to risk their possessions. To do so, the debtor will have to develop a monthly payment plan through which he/she will pay off his/her debts over a certain period, which is usually from 3 to 5 years depending on the amount of accumulated debt. However, to ensure that your chapter 13 bankruptcy process is successful and efficient, you should work with a chapter 13 bankruptcy huntington beach.

Now, to find a bankruptcy lawyer near you who can guide you every step of the way, and whom you can trust at all times, you should start by looking at KT Bankruptcy. This law firm has helped hundreds of Californians get a fresh financial start, and you can be next. Don’t waste any more time, schedule your free consultation today.

Benefits of chapter 13 bankruptcy

Chapter 13 bankruptcy can bring you considerable benefits such as:

Keep your properties

The main benefit of Chapter 13 bankruptcy is that, as long as you meet the monthly payments stated in your repayment plan, both your exempt and non-exempt assets will not be affected in any way.

Stop foreclosure

Bankruptcy can help you stop foreclosure on your home.  The past due amounts of your mortgage will be divided into manageable chunks for you, and you will have the opportunity to include them in your payment plan.

Debt reduction

In certain cases, Chapter 13 may provide you with the opportunity to pay only a portion of your remaining debt. This could be as little as 10% of your debt in some instances, while the other 90% is cleared entirely.

Stop debtor harassment

If you feel harassed by your creditors demanding payment of your debts, bankruptcy is an option to get rid of them. By filing for bankruptcy, your creditors are legally obligated to leave you alone immediately.

Chapter 13 process

If you want to file for Chapter 13 bankruptcy, here’s what to do:

  1. Find a bankruptcy attorney near you

    The bankruptcy process can be very complicated for those who are not familiar with it. So, if you want your bankruptcy to be effective, you should work with a bankruptcy attorney in Huntington Beach.

  2. Collect and file your paperwork

    This might be the most time-consuming step. With the help of your attorney, you must collect all financial documents relevant to your case. Also, you must provide the forms required by the bankruptcy court, including your proposed repayment plan.

  3. The court appoints a Trustee

    The bankruptcy court will assign a trustee to your case, who will review your documents, and make sure your repayment plan complies with the law. Furthermore, the trustee will collect the money from your repayment plan and redistribute it to your creditors.

  4. Attend the meeting of creditors and confirmation hearing

    At the meeting of creditors, you will have to answer questions from your trustee and, occasionally, from your creditors, who may object to your repayment plan. Then, at the confirmation hearing, the objections will be considered and your plan will be approved.

  5. Keep up with your payments

    After your plan is approved, you will have to start paying monthly. You will have to get used to living on a slightly tighter budget, but it will be beneficial in the end. If you keep up with your payments, your assets will not be affected by the process.

  6. Comply with your plan and be discharged

    At the end of the repayment plan period, the court will grant you a discharge, which will eliminate all remaining debt. You will be officially debt-free, and ready to start rebuilding your finances.

If you want to start your journey towards a fresh financial start, you need an experienced Huntington Beach bankruptcy lawyer by your side. Schedule a free consultation with KT Bankruptcy today. Learn more about Legal facts.