Some firms handle bankruptcy proceedings like a production line. The Chapter 13 bankruptcy attorneys at MacLean Chung Law Firm will never do that. We will give you the personal attention you deserve. We will give an honest evaluation of your situation and give you all of your bankruptcy and non-bankruptcy options. Moreover, we believe in providing quality representation at a fair and reasonable fee. Remember to check out our “Frequently Asked Questions” page for answers to the most common bankruptcy questions.
We take great pride in providing great service to our clients. Check out our great reviews on Yelp and Google. Our Chapter 13 bankruptcy lawyers will find out as much as we can about you, your situation and your goals, and use this information to create a personalized plan for you.
Chapter 13 bankruptcy is an alternative to filing for Chapter 7 bankruptcy. In its most essential form, Chapter 13 bankruptcy is a repayment plan. However, how much you are required to repay your creditors will be determined by your financial situation. Some people pay less than 5% of what they owe to their creditors, while others are required to pay 100% of what they owe. Each case is different and requires an honest evaluation.
The most common reason people file for Chapter 13 bankruptcy is because they do not qualify for a Chapter 7 bankruptcy. The stringent “Means Test” required to file Chapter 7 bankruptcy can be a difficult barrier for many people. In certain situations, even a “modest” income will disqualify people from filing Chapter 7 bankruptcy.
Another reason people choose Chapter 13 bankruptcy is to stop the foreclosure of their house. Chapter 13 bankruptcy can immediately stop a foreclosure from taking place and allow the debtor to repay the deficiency through a Chapter 13 repayment plan. A Chapter 13 bankruptcy can also stop any other kinds of property, such as a car, from being repossessed and allow the debtor to retain the property.
There are many other reasons to file Chapter 13 bankruptcy. Getting a full bankruptcy consultation with an experienced bankruptcy attorney is essential to exploring your full range of viable options.
A Chapter 13 payment plan is based upon a number of different factors. Some people pay a very minimal payment of around $100.00 a month or even lower, wherein they only pay back less than 5% of their debt. Others will be required to pay back 100% of what they owe to their creditors. And the vast majority of people will fall somewhere in the middle.
The two main factors the bankruptcy court considers are the debtor’s disposable income and their un-exempt assets. Issues with un-exempt assets usually only arise if you own a home with a large amount of equity (over $100K). If either the disposable income is high or the un-exempt assets have a high value, the result will be a higher repayment plan. A lower disposable income and having no un-exempt assets will typically result in a low repayment plan.
Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy does not place any of your property in danger of being seized. You will not lose any property when you file for Chapter 13 bankruptcy. Chapter 13 bankruptcy can help you keep your property and get back on your feet.
You may have heard or seen advertisements for debt consolidation companies (Freedom Debt Relief, National Debt Relief, etc.). Debt consolidation companies insist that people should not file for bankruptcy and instead should allow the companies to negotiate their debt through a long term payment plan.
There are a couple things these companies typically do not tell you. First, it is highly likely that you will be served with a lawsuit during your debt consolidation payment plan. The lawsuit will become a judgment against you. Second, your credit score will completely tank as you will continually miss payments on your debt. Debt consolidation does not help your credit score. Third, in the event they negotiate any of your debt for less than what you owe, your former creditor will give you a 1099c and you will have to pay income taxes on the forgiven debt. Fourth, once you get served with a lawsuit, the debt consolidation company will increase your monthly payment and possibly extend your payment term with them. Fifth, their fees are typically significantly higher than any fees you will pay a bankruptcy attorney. Sixth, debt consolidation plans have a extremely high rate of failure (many of our clients come from failed debt consolidation plans). And finally, filing for Chapter 7 or Chapter 13 bankruptcy would have likely saved you thousands of dollars and would have been a better alternative for your credit score. For more information, check out our blog post on how debt consolidation is really just digging a bigger hole for yourself.
Many of our clients file bankruptcy come from failed debt consolidation plans. Chapter 13 bankruptcy takes the uncertainty of debt reorganization away and forces the creditors to submit to the rules outlined in bankruptcy law.
There is a great amount of information on the internet about bankruptcy. However, only an experienced bankruptcy attorney can assess your particular situation and give you your debt relief options. Our bankruptcy attorneys counsel people about all of their options outside of bankruptcy, as well as their options in Chapter 13 and Chapter 7 bankruptcy. We pride ourselves on providing the best bankruptcy consultation in the business. Schedule a free consultation with our office and see why time and again we are told we have the best consultation because we take time to explain all of the options and the process of bankruptcy in a clear and concise manner.
For other Frequently Asked Bankruptcy Questions follow the link.
The Chapter 13 bankruptcy attorney at MacLean Chung Law Firm will tell you if Chapter 13 bankruptcy is a viable alternative for your situation. The Los Angeles Chapter 13 bankruptcy lawyers at MacLean Chung Law Firm will give you an honest assessment of your case.
WE ARE A DEBT RELIEF AGENCY. WE HELP PEOPLE FILE FOR RELIEF UNDER THE BANKRUPTCY CODE.
MacLean Chung Law Firm provides legal advice and representation for questions about Chapter 7, Chapter 13, foreclosure and debt repayment in communities throughout Los Angeles and California. Our main office is in Burbank. For your convenience, we can meet by appointment at our branch offices in Valencia and Pasadena, California. We also offer consultations via phone and Zoom. Our office hours are from 9 a.m. to 5 p.m., Monday through Friday, but we are available to meet with clients at any time by appointment.
