Orange County Chapter 13 Bankruptcy Lawyers

A Chapter 13 repayment plan can include certain types of both secured and unsecured debt. Common unsecured debts, such as credit card debt and payday loans, can be partially or fully repaid through the plan, with any remaining eligible amounts discharged at the end. Secured debts like car loans and mortgage arrears may also be included and restructured. 

However, it’s important to note that child support payments and other domestic support obligations must be paid in full and cannot be discharged, though they can be addressed in the plan to help you catch up.

Both Chapter 7 and Chapter 13 bankruptcy have their own advantages, depending on your financial goals and the types of debt you owe. Chapter 7 is generally faster and is best suited for eliminating unsecured debts such as credit card balances, medical bills, and personal loans. However, it may require you to give up non-exempt assets, including a second vehicle, investment property, or valuable items like artwork, depending on how your exemptions apply.

In contrast, Chapter 13 is often a better option if you need to keep important assets or catch up on secured debts like mortgage arrears. It also offers protection for co-signers, who may remain vulnerable to collection efforts in a Chapter 7 case. What’s more, if you're facing foreclosure, filing for Chapter 7 bankruptcy in Orange County may only delay the process temporarily, whereas Chapter 13 allows you to include past-due mortgage payments in a structured repayment plan and keep your home.

The federal bankruptcy court fee for a Chapter 13 petition in California is $313, which includes a $235 filing fee plus a $78 administrative fee. This does not include attorney fees.

Yes, filing Chapter 13 can stop foreclosure proceedings through an automatic stay that immediately halts all collection actions, including scheduled foreclosure sales. It also gives you the opportunity to catch up on past-due mortgage payments through a court-approved repayment plan, allowing you to keep your home while resolving your debt.

After completing a Chapter 13 bankruptcy in California, you must continue making regular mortgage payments if you want to keep your home. If your repayment plan was used to cure delinquent mortgage payments, those past-due amounts should be fully caught up by the end of the plan, allowing you to keep your home and avoid foreclosure. Once your case is closed, ongoing monthly payments remain your responsibility moving forward.

Chapter 13 payments are based on the debtor’s gross income minus allowable expenses, resulting in what the court considers disposable income. This is the amount you’re expected to contribute toward your repayment plan each month. Disposable income excludes certain items like ordinary operating expenses for a business, but may factor in specific sources of income like child support payments received.

To estimate your payments, check out our Chapter 13 payment calculator.

Chapter 13 contains three types of creditor claims: priority, secured, and unsecured. The type of creditor claim determines which debt gets paid first. Your repayment plan will put priority claims first. These include alimony, child support, bankruptcy filing fees, wages owed to employers, and recently incurred taxes. These debts must be paid in full.

The second type of debt is secured debt. This debt is categorized as any debt that creditors can take back. Examples of secured debt are mortgages and car loans. To keep your home and car, payments must be made on time and will usually need to be paid in full.

The third type of debt is non-priority unsecured debt. The rest of your debt should fall under this category. This type of debt is not backed by collateral and cannot result in anything being taken from you. Unsecured debt includes credit card debt, medical bills, and personal loans. This debt is not usually paid in full. Instead, your disposable income is used to pay these off during the course of your bankruptcy.

There is a possibility that the court may discharge your remaining eligible debt. You could qualify for debt discharge if you’ve paid your domestic obligations, have not received a discharge for Chapter 7 or 13, and have completed an approved financial management program.

Missing a Chapter 13 payment has the potential to negatively impact your bankruptcy case. If you miss a payment, you could be at risk of your bankruptcy case being dismissed or being changed to a Chapter 7. If you make a payment several days late because of an unexpected financial emergency, it may not cause a bankruptcy dismissal, but it’s best not to take the chance.

If you encounter a financial emergency, you can explain the situation to your trustee, who should be able to assist you in avoiding any extreme consequences from the missed payment. When the bankruptcy payment is late in Chapter 13, the trustee cannot pay the creditors, so it’s important to let them know if you have an emergency that will affect your payment.

The timeline for Chapter 13 bankruptcy varies according to the results of your means test. Depending on the calculation of your median income levels, you could qualify for the 36-month (3-year) plan. Those qualifying for the 36-month plan have a median income below the state median income. If you’re above California’s median income, you will likely have to complete the 60-month (5-year) plan. Your bankruptcy payment plans will never exceed five years.

Attorney fees for Chapter 13 vary depending on the complexity of your case and the region, but they are typically structured to fit within your repayment plan. 

Unlike debt settlement schemes that often lack court protection and long-term relief, working with a bankruptcy attorney offers a legal path to a fresh financial start. Most firms also offer free consults to help you understand your options and what legal services may cost in your situation.

Filing for Chapter 13 bankruptcy is a complex legal process. While you’re not required to have a lawyer for your bankruptcy case, it is recommended. The judge will often suggest that you retain a lawyer to handle your bankruptcy. Filing your bankruptcy on your own can be overwhelming.

Every form needs to be filed accurately; even the slightest misstep can result in losing your home or dismissing your case. Without a bankruptcy attorney, you could even end up paying more than necessary to get out of debt.