Debt Relief

Debt is a major issue in this country, and with Covid-19 causing businesses to shut their doors or needing to downsize severely, it has become worse. People who have substantial debt are looking for solutions other than taking out Chapter 7 bankruptcy, which carries many consequences.

Discover how you can get debt relief in today’s blog.

Chapter 13 Bankruptcy Plan

Here is why financial experts in Orange County, Los Angeles County, San Bernardino County, and Riverside County, CA, discuss a bill consolidation plan for consumers. (Chapter 13). A chapter 13 case can put the consumer back in charge of his or her financial obligations. It is a plan of reorganization for the self-employed consumer, a sole proprietor, an employee, or wage earner. The chapter 13 process is designed to cure arrears on house payments, pay a tax debt, or pay a money judgment. Here are some of the benefits of a chapter 13 case.

Benefits of Chapter 13

There are several benefits of a Chapter 13 case, including:

  • Stopping foreclosures (Trustee’s Sales), which provides the homeowner up to 60 months to cure the arrears on past due house payments and real property taxes
  • Stopping motor vehicle repossessions, providing the owner up to 60 months to cure the arrears on past due car payments —the debtor is entitled to reinstate the payments that are in arrears on secured debts. The arrears on a deed of trust can be amortized over 60 months in many cases to bring the loan current. The arrears on a car payment can also be cured during this same 60 month period.
  • Stopping the telephone calls, collection letters, and collection efforts by creditors because of the bankruptcy court’s automatic stay issued in a bankruptcy case — the automatic stay stops the creditors from enforcing the debt while the bankruptcy case is pending in the court. The creditor must obtain relief from the automatic stay before continuing to enforce the debt after the debtor files the case.
  • Protecting your real property, your paycheck earnings, personal property, and bank accounts from seizure, liquidation, or foreclosure by creditors 
  • Stopping Garnishment and Bank Account Levies by the automatic stay 
  • Stopping Creditors — Reorganize your debt payments under the Bankruptcy Code. A chapter 13 case is also known as a bill consolidation plan which allows the debtor to use his or her best efforts to use all disposable income to repay creditors.
  • Make your creditors comply with your reorganization plan as approved by the Bankruptcy Court. The Bankruptcy Court conducts a hearing after giving your creditors the terms and details of your proposed reorganization plan.

Contact Us for Chapter 13 Bankruptcy Help

Are you facing bankruptcy and need debt relief? Get in touch with The Law Offices of Charles W. Daff and allow us to consult with you about your circumstances. Our law firm has over 39 years of experience offering legal services to people in need. We serve clients in Los Angeles, Riverside, Orange, and San Bernardino counties.

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