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(PRWEB) January 19, 2013
The Orange County Bankruptcy offices of Zhou & Chini have released a new campaign focusing on filing for Chapter 13 bankruptcy in Orange County. Under the Chapter 13 provision on bankruptcy, the debtor is permitted to keep all of his assets regardless whether or not they are entirely exempt. Chapter 13 only requires that “plan payments” be made in accordance with law. This means that the debtor must be able to pay his creditors a certain percentage within a specified period of time. To learn more about Chapter 13 bankruptcy in Orange County or to speak with an Orange County Lawyer to discuss a possible filing visit, http://BankruptcyAttorneyOrangeCounty.org.
The main tool used to determine the amount of the plan payments is called the "means test". The “means test” is used to determine the debtor's "disposable income" which typically becomes the amount of the monthly plan payment subject. The amount of the monthly plan of course will determine how much if any of the debts are paid off through the Chapter 13. Each individual has a unique financial situation, is someone is considering filing for Chapter 13 bankruptcy in Orange County, it is probably best to consult with an experienced bankruptcy attorney.
Not all debts are treated the same, however, in a Chapter 13 plan. Certain debts such as certain taxes, domestic support obligations, child support are entitled to "priority" or preferential treatment. They get first pickings on the plan payments. Secured debts and any arrears are also typically treated "better" than unsecured debts such as personal loans, credit card debts, etc. Plans typically called for secured debts or in the least, their arrears to be paid in full through the payment plan. At such, it very well may be that unsecured creditors received little to no payment whatsoever. To know more about filing for Chapter 13 bankruptcy in Orange County California, or have questions concerning bankruptcy, call the firm directly at, 888-901-3440
Under the provision of Chapter 13, the plan must be able to meet several tests in order for the same to be confirmed or approved by the bankruptcy court. The process includes the following: (1) the plan must be proposed by the proponent in good faith; (2) the plan must meet the “best interest of creditors test”; (3) the plan must also meet the “best efforts” test. Speak to a bankruptcy attorney to learn more about the process.
The first test merely requires that the debtor has the intention to completely follow the terms contained on the plan and do not have any intention in misrepresenting his finances or to perpetrate fraud before the court. The “best interest of creditors test” requires that the “payment plan” must be able to pay the unsecured creditors with the amount that the latter would have been entitled to under a petition filed under a hypothetical Chapter 7 bankruptcy in Orange County. This test is easily met considering that most of the time the unsecured creditors do not recover anything under Chapter 7. The last test, on the other hand, requires the debtor to use their best efforts to pay off unsecured creditors. To find out more about chapter 7 bankruptcy in Orange County visit the bankruptcy firm’s website.
Chapter 13 also requires a trustee who administers the case on behalf of United States Trustee Office. The trustee has the task of reviewing the proposed “payment plan” of the debtor. The trustee also has the ability to challenge the plan in bankruptcy court in case he believes that the plan is improper. The trustee is considered as the intermediary between the debtor and creditors who should receive the payments. Accordingly, under a valid “payment plan” the debtor gives payment to the trustee on a monthly basis. After having received the payment, the trustee now has the task of dividing the payment as prescribed in the “payment plan” and issues the payments to the creditors. The issue for some in Orange County is having too much equity in their homes, but may not have enough income to sustain large debt payments. For individuals 62 or older, a Orange County reverse mortgage may be an option for them.
Chapter 13 also prohibits the debtor from incurring any other debts without the court’s approval. Additionally, the debtor has the obligation to maintain insurance on any collateral. At the end of the plan, the debtor shall be discharged of his obligations. This does not include non-dischargeable debts which includes taxes and domestic support obligations. However, non-discharge ability of such debts should not an issue in a Chapter 13 as the payment plan typically requires for all such priority debts to be paid off entirely through the plan. As such, when the plan is completed, all such debts should have been paid back in full.
The Orange County bankruptcy attorneys use the best SEO professionals to assist in law firm marketing to promote the message about the importance of speaking with a bankruptcy lawyer in Orange County CA. The attorneys continue their online presence by offering zero cost bankruptcy information on bankruptcy firm’s blog and social media pages. This information along with free consultations the firm hopes to attract more Orange County residents looking for financial relief. To read more about the firm’s bankruptcy attorney Orange County Facebook page visit, https://www.facebook.com/BankruptcyAttorneyOrangeCounty
About the Firm: The Law Office of Zhou & Chini servicing the cities and counties of California. He is a graduate of UCLA and has been practicing law since 1999. Mr. Zhou has a wealth of experience in bankruptcy, civil litigation, family law, criminal law and unlawful detainer. Zhou and Chini Law Offices provide bankruptcy assistance to Los Angeles, Orange County and San Diego residents.
Contact: Ron Chini