Filing Chapter 13 Bankruptcy in Long Beach

In an era of extreme financial stress, increasing numbers of people, often out of work, cannot pay their bills or make their mortgage payments. If you find yourself in need of assistance to pay your debts, contact Long Beach, California bankruptcy attorney Laura E. Claveran at the Claveran Law Firm to discuss your options for filing bankruptcy.

One of the options available to financially-strapped individuals is to file for bankruptcy under Chapter 13 of the United States Bankruptcy Code. Under Chapter 13, an individual – the debtor - files a petition in the Bankruptcy Court for the district in which he lives, and lists on schedules all of his creditors, assets, and liabilities. He must also file a schedule of income and expenditures, and a statement of financial affairs. With these documents, any creditor or other interested party can get a true picture of the debtor’s financial position. The debtor must also perform a proposed payment plan with the petition.

The purpose of the bankruptcy proceeding is to give the debtor “breathing room.” It is not meant to be an escape from all debt, nor will it discharge all debt. The payment plan must provide for the payment of all “priority claims,” which are defined by the Bankruptcy Code. The plan is given to all interested parties, including a trustee appointed by the Bankruptcy Court to oversee the proceeding. Creditors may object to the plan. The plan may be revised to satisfy objections to it. Once approved, the debtor makes monthly payments to the trustee who distributes the money to the creditors.

A Chapter 13 bankruptcy has advantages and disadvantages, and you must be fully apprised of both before you file for bankruptcy. You should know what the ramifications of a bankruptcy may be, and what alternatives you have. The Claveran Law Firm has 20 years of experience advising clients how to get out of debt.

Contact Laura E. Claveran at 888.838.0431 to discuss your situation, or email us online via our contact form.