Chapter 13 Bankruptcy

Kosnett Law will file Chapter 13 bankruptcy for you in Los Angeles and Orange counties. We have 7 offices in both counties.

A Chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period “for cause.” If the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1322(d). During this time the law forbids creditors from starting or continuing collection efforts.

Advantages of Chapter 13

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the Chapter 13 plan on time.

Another advantage of Chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the Chapter 13 plan. Doing this may lower the payments.

Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers.

Finally, Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under Chapter 13 protection.

What we do for you

Filing bankruptcy under Chapter 13 requires careful preparation and understanding of legal issues. We will help you navigate these issues.

• We will take the time to listen to your unique story and situation by and extensive interview, we will review all of your financial documents. We will also obtain your credit report and reviews it with you.
• We will explain the relief available under each of the Bankruptcy Codes. We will also review with you other options that may be appropriate such as debt consolidation, mortgage litigation, repayment plans and other defenses that may be available, based on your situation.
• We will advise you on whether your debts can be discharged.
• We will advise you on what property you can keep after you file.
• We will advise you of the tax consequences of filing.

Once retained we will perform the following services:

1. We will prepare and file your petition, schedules, and all required statements.
2. We will prepare and file a plan of reorganization under Chapter 13.
3. We will provide emergency notices to creditors where pending actions such as foreclosure or wage garnishment threaten the immediate loss of your property to stop these actions.
4. We will work with the Bankruptcy Trustee to provide all necessary documents and facts concerning your case and to negotiate the approval of your plan.
5. We will meet with you to prepare you for the §341a meeting, we will attend and represent you at the meeting or any subsequently requested examinations.
6. We will make any amendments that are necessary following the meeting.
7. We will represent you and the hearing to confirm your Chapter 13 plan.
8. We will file your post BK counseling certificate and monitor your case until the discharge is entered.

The services offered by Kosnett Law firm may involve a recommendation to file for Bankruptcy relief under the United States Bankruptcy code. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.