What a Chapter 13 Attorney Does for Arcadia-Area Homeowners

A Chapter 13 attorney builds a three-to-five-year repayment plan that the court and trustee will approve, then keeps it on track until you finish. For homeowners in Arcadia and nearby cities, the most common goal is to stop a foreclosure and catch up on missed mortgage payments while keeping the house.

Before filing: choosing the plan length and payment

Your attorney reviews your income, expenses, mortgage arrears and other debts to calculate a payment you can realistically make. Plans generally last at least three years if your income is below the California median and five years if it is above. The plan must pay certain debts in full, such as mortgage arrears you want to cure and most recent taxes, and must pay unsecured creditors at least what they would receive in a Chapter 7 case.

Filing stops the foreclosure

Filing the case triggers the automatic stay, which stops a scheduled foreclosure sale. Timing matters: the case must be filed before the sale. Read more about foreclosure defense.

Getting the plan confirmed

After filing, you attend the meeting of creditors with the Chapter 13 trustee. The trustee reviews the plan and may ask for changes or documents. The court then holds a confirmation hearing. Your attorney negotiates with the trustee and creditors and handles any objections.

Tools available in Chapter 13

• Curing mortgage arrears over the life of the plan while you keep paying the regular monthly amount
• Removing a second mortgage or home equity line when the home is worth less than the first mortgage
• Paying back taxes over time without new penalties in many cases
• Protecting co-signers on many consumer debts while the plan is active

During the plan

Life changes over five years. If your income drops, a job ends or a new expense comes up, your attorney can ask the court to modify the plan. Part of the attorney fee can often be paid through the plan rather than up front.

Is Chapter 13 right for you?

Chapter 13 fits homeowners who want to keep a home they are behind on, people with income above the median, and anyone with property worth more than the exemptions protect. If you are current on the mortgage and mainly have credit card debt, Chapter 7 may be simpler. See our Chapter 13 page, or the pages for Temple City and San Marino homeowners.

Talk to an attorney in Arcadia. Free consultation at 255 E Santa Clara St, Suite 210, Arcadia, CA 91006. Call (626) 593-1558 or use the form below.

This article is general information, not legal advice for your situation.