Chapter 13

The Law Office of Nima Taherian assists individuals in filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy allows eligible consumers to reorganize their debt into a payment plan with repayment occurring over a three to five year period. Generally, the plan lowers payments and makes paying off the debt more realistic. This allows individuals to get caught up on house and car loan payments and achieve financial stability.

Filing for bankruptcy is not a tragedy — in reality, it can be a fresh start for you and your family. Chapter 13 bankruptcy reorganization can be a viable option for consumers who cannot repay their debts as scheduled. You may wish to consider Chapter 13 if you have assets and steady income but are facing a home foreclosure, past-due credit card payments, delinquent mortgage payments, significant consumer debt without home equity, or tax arrearages.

Chapter 13 gives you the chance to get caught up with your house if you have been behind on payments for up to 60 months. You are also able to repay your car loans over the same amount of time at a 5.25% interest rate. If you have had a note on your car for at least 910 days, then you can reduce payments, paying only the value of the vehicle rather than the balance on the note. For example, if your car is worth $15,000 and the balance on the note is $20,000, under Chapter 13, if you have had the car note for at least 910 days, then you can pay only $15,000. You can also pay non-dischargeable IRS debts at 0% interest.

For individuals with regular income, Chapter 13 enables the development and proposal of a structured repayment plan, or “wage earner’s” plan, to repay debts at a more affordable rate. The court will order a repayment plan that gives you three to five years to pay off your debts, depending on your monthly income in relation to the state median. Chapter 13 can be beneficial for individuals with steady income who have a valuable asset they wish to protect, such as a home, which may not completely exempt under Chapter 7. By developing a suitable Chapter 13 repayment plan, you may be able to save your home from foreclosure, extend the payment period for other secured debts, and protect third parties that co-signed on your loans and are thus also liable.

While the complexity of a Chapter 13 filing varies according to each client’s financial situation, we provide essential guidance throughout the entire process. After filing the petition in bankruptcy court, we can help you develop and prepare a proposed payment plan, examining your finances and drafting a feasible plan that accounts for your unique circumstances. After filing your wage earner’s plan, we can accompany you in meeting with a court-appointed trustee and any of your creditors who choose to attend. Once any necessary adjustments are made, the bankruptcy court will confirm your payment plan for a duration ranging from three to five years.

Creditors can be unrelenting in their collection actions against you. Filing under Chapter 13 can stop this constant harassment and provide a stable repayment plan for the years to come. During your repayment period, creditors are prohibited from pursuing collection actions, including directly contacting you via telephone, email, or mail. The court-appointed trustee manages your payments and then distributes them to creditors.

For many individuals, Chapter 13 bankruptcy is the optimal means of establishing stability and avoiding financial collapse. Do not wait until it is too late. For experienced bankruptcy advice and representation, contact the Law Office of Nima Taherian today for a free initial consultation. Mr. Taherian personally handles all clients’ matters and is available by appointment evenings and weekends if necessary.