Hiring a Los Angeles chapter 13 attorney

A Chapter 13 bankruptcy helps client avoid the loss of his or her assets and lets him or her reduce the total amount of money that one must pay on certain types of debt.

Los Angeles, CA (prHWY.com) March 20, 2013 - A Chapter 13 bankruptcy helps client avoid the loss of his or her assets and lets him or her reduce the total amount of money that one must pay on certain types of debt. It helps client pay off his or her debts over a three- to five-year period according to the terms of the debt reorganization. In such situation hiring a Los Angeles chapter 13 attorney is very important. The automatic stay will protect client while he or she is paying off the debts. The creditors can object to the terms of the debt reorganization plan that client propose. If the judge upholds their objections, client will have to revise his or her plan before the judge will confirm it. The reorganization plan won't be official until it is confirmed. Once it is, client will have to live up to everything his or her promise to do in the plan.



However, if client begin having problems living up to the plan, let the attorney know. Client may be able to avoid having the bankruptcy dismissed--which would mean that the creditors could start trying to collect from client again--by modifying the plan or converting the bankruptcy to a Chapter 7. Both Chapter 7 and Chapter 13 bankruptcies have their own pluses and minuses. For example, although most of the debts get erased in a relatively short period of time when client file for Chapter 7, that kind of bankruptcy will stay in the credit histories for 10 years. During that time, as a result, the credit scores will be lower than if client hadn't filed for Chapter 7, and client won't qualify for new credit with attractive terms. However, the further in the past the Chapter 7 bankruptcy occurred, the less of a negative impact it will have on the life.



There are several benefits of filing for Chapter 13 and Los Angeles chapter 13 attorney. Client can keep most, if not all, of his or her assets. Under certain circumstances, client can pay off some types of secured debts (such as a car loan or a furniture loan) by paying the market value of the collateral that secures the debt in payments over the term of the plan keeping the total amount that client still owe on the debt. When client do, it's referred to as a cram down. A cram down makes sense if the loan collateral has lost so much value since client got the loan that the asset is now worth less than what client still owe on it.

###

Tag Words: chapter 13 attorney

Categories: Legal

Press Release Contact
Phone No :- (310) 853-6993

Address :- 510 W. Sixth Street Los Angeles, CA

Zip Code :- 90014

Link To This Press Release:

URL HTML Code