Those who have regulated income can file Chapter 13 bankruptcy to create a repayment plan for all or part of their debt. In Chapter 13, debtors propose a plan that includes making installment payments to their creditors between three to five years. If the debtor’s current income is less than the state median, the plan can only be up to three years. Depending on other circumstances, the court can approve the plan for a longer duration.
What Are the Advantages of Chapter 13?
In comparison to Chapter 7, filing for Chapter 13 bankruptcy offers many advantages as opposed to liquidation. Chapter 13 bankruptcy promotes the opportunity to save homes and businesses from foreclosure. You would be able to put a stop to foreclosure proceedings, but of course, you are still required to make your mortgage payments. Chapter 13 bankruptcy also allows for you to reschedule secured debts (which does not include a mortgage) and prolong them throughout the course of the plan.
How to File for Chapter 13
A Chapter 13 bankruptcy normally starts with filing a petition with the Bankruptcy Court. The debtor must list all assets and liabilities, current income and expenditures, executory contracts, unexpired leases, and financial affairs. All debtors under Chapter 13 bankruptcy must also provide the trustee with a copy of the year’s most recent tax return and transcripts.
Chapter 13 bankruptcy also includes an automatic stay provision. This protects co-debtors. Creditors are prohibited from seeking a consumer debt collection unless the court authorizes this action.
Am I Eligible for Chapter 13 Bankruptcy?
If you have questions, or issues, concerning Chapter 13 bankruptcy eligibility, you could speak with a bankruptcy attorney. The Law Offices of Emil Fleysher, P.A. can assist you in determining whether if Chapter 13 is right for you. All areas of your credit, assets, liabilities, and more are reviewed to determine your eligibility. If your unsecured debts total less than $395k and your secured debts total less than $1.18M, then you should be able to file Chapter 13.
The conditions in which you cannot file are as follows: a prior bankruptcy petition was dismissed due to the debtor’s willful failure to appear before the court or neglected to receive credit counseling from an approved credit agency.
Call an Experienced Bankruptcy Attorney in South Florida Today
When you seek more information about filing for Chapter 13 bankruptcy, it is in your best interest to speak with an experienced bankruptcy attorney. We are dedicated to each one of our clients and their needs. Our team takes your situation seriously and does everything possible to help you secure a favorable outcome with the bankruptcy court. The Law Offices of Emil Fleysher, P.A. can assist with your case. Call our office today at 888-886-0020 to schedule a consultation. You can also complete a contact form on our website for more information.