Ontario Chapter 13 Bankruptcy Attorney
Chapter 13 bankruptcy allows people with a sufficient regular income to develop a plan to repay their debt over an agreed upon period of time – typically three to five years. This type of bankruptcy is good for people who want to keep certain assets, like their home or car, which could be repossessed or foreclosed upon in Chapter 7. Chapter 13 lets people reorganize their finances by consolidating their debts and create a manageable repayment plan while receiving protection from the bankruptcy court against collection actions from creditors.
The Law Office of Curtis R. Aijala, APLC in Ontario, California, can assist you with the bankruptcy process. They provide thoughtful, personal guidance in these matters.
Debt Reorganization With Chapter 13 Bankruptcy
Chapter 13 bankruptcy helps with a variety of debts. It can eliminate certain debts, like credit card debt, with a repayment plan. It also allows you to find a structured way to pay off your arrearages on your home mortgage or car loan.
While the Chapter 13 process is difficult, the eligibility requirements for filing Chapter 13 bankruptcy are relatively straightforward. You must, for example, be up to date with income tax filings, have sufficient regular income, and have debt that does not exceed the secured and unsecured limit. The Law Office of Curtis R. Aijala, APLC can provide more details and information about eligibility and debt reorganization in the free assessment.
Frequently Asked Questions About Chapter 13 Bankruptcy
Below are answers to some common questions about Chapter 13 bankruptcy.
How does filing for Chapter 13 bankruptcy affect my credit score?
Filing for Chapter 13 bankruptcy will initially lower your credit score – the exact impact depends on your pre-filing credit history. The bankruptcy will remain on your credit report for seven years from the filing date, which is three years less than a Chapter 7 bankruptcy. However, many clients see their credit scores begin improving during their repayment plan as they demonstrate consistent payment history.
Some lenders view Chapter 13 more favorably than Chapter 7 because it shows a commitment to repaying debts rather than discharging them completely. Most find their credit scores have recovered substantially by the time they complete their repayment plan, allowing them to qualify for new credit, mortgages or auto loans at reasonable rates within a few years after discharge.
How long does a Chapter 13 repayment plan last?
Repayment plans typically last between three to five years. The length depends primarily on your income level compared to the median income in California. If your income is below the state median, you may qualify for a three-year plan. If your income exceeds the median, you will generally be required to commit to a five-year plan.
However, even with below-median income, you might choose a longer plan to make monthly payments more affordable or to address specific debts like mortgage arrears. During your free assessment at our office, we can calculate your specific plan length based on your financial circumstances and help you understand how this timeframe affects your overall repayment obligation.
What happens after I complete my Chapter 13 repayment plan?
Upon successful completion of your Chapter 13 repayment plan, the court will issue a discharge order that releases you from the remaining debts covered by your bankruptcy. This typically includes any unsecured debt balances that were not paid through your plan. You will have retained ownership of secured assets like your home and vehicles by bringing payments current during your plan. Your case will officially close, ending the bankruptcy court’s supervision of your finances. You will receive a discharge certificate, which serves as proof that you have fulfilled your obligations under bankruptcy law. At this point, you emerge from bankruptcy with substantially reduced debt, assets preserved and a foundation for rebuilding your financial future.
Get The Help You Need From An Ontario Chapter 13 Bankruptcy Lawyer
If you are trying to navigate alone through overwhelming debt, and you do not qualify for a Chapter 7 bankruptcy, Chapter 13 may be a good solution for you. The Law Office of Curtis R. Aijala, APLC can help you figure out what your best options are. The staff at The Law Office of Curtis R. Aijala, APLC speaks Spanish. Schedule a free initial assessment of your case today to learn more about our efficient personal service. Use the online contact form or call 909-983-0877 to get in touch.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.