Chapter 13 is especially beneficial to borrowers who are facing foreclosure and do not want to lose their home or other assets. When a Chapter 13 bankruptcy is filed it will immediately stop all foreclosure and other debt collection activities. Chapter 13 can even allow you to get your driver’s license reinstated if it has been suspended due to unpaid parking tickets. Furthermore, our bankruptcy lawyers have helped many clients discharge their debt under Chapter 13 after only paying creditors a small percentage of the amount owed.
When a borrower files for Chapter 13 they will be required to comply with a court supervised payment plan. The payment plan outlines how a borrower’s disposable income will be used to pay the debts included in the bankruptcy. Disposable income is calculated by deducting a borrower’s expenses and cost of living from the income they receive. The payment plan will usually require the borrower to pay all of their disposable income for the next 3 to 5 years toward the debts included in the bankruptcy. If the borrower complies with the terms of the bankruptcy any balance still due on credit cards and other unsecured debt at the end of the bankruptcy will be discharged.
To be eligible for Chapter 13 bankruptcy you must meet the rigid requirements proscribed under bankruptcy law. To qualify for Chapter 13, your unsecured debts must be less than $383,175 and your secured debts must be less than $1,149,525. Secured debts are loans that have collateral, such as a car loans and mortgages. In addition, your payment plan must provide that your creditors receive as much as they would have if you filed for Chapter 7, instead of Chapter 13 bankruptcy. Determining eligibility for Chapter 13 can be complex and requires a thorough understanding of bankruptcy law. To see if you qualify for Chapter 13 bankruptcy contact us to speak with a Tampa bankruptcy lawyer at our firm.
Florida Law Advisers, P.A. is dedicated to providing effective representation, individual attention, and affordable fees to our bankruptcy clients. All of our initial consultations are free and convenient payment plans are always available. Florida Law Advisers, P.A. is a customer-service oriented firm with a strong reputation for providing personalized attention and dedicated legal counsel. Regardless if you need help with Chapter 13, Chapter 7, or other debt relief, our professional legal team will provide you with competent legal advice you can trust.