Chapter 13 – Reorganization Bankruptcy

Chapter 13 bankruptcy is different from Chapter 7 bankruptcy in many ways. Perhaps the most significant difference to debtors is the fact that Chapter 13 does not call for a debtor to give up their property, like Chapter 7 filing process requires. Instead, under a Chapter 13 bankruptcy, a debtor will be mandated to create a repayment plan that shows structure and strict adherence to the deadlines established in the plan. The plan will outline specific ways that you will use your income to pay off the outstanding debts you have accumulated. Those who choose Chapter 13 bankruptcy are typically provided with anywhere from three to five years to pay off their debts.

Because Chapter 13 bankruptcy uses the personal income of a debtor to pay off the money owed to one or more creditors, it must be evidentially proven that the debtor has a steady job and enough income to make payments. Individuals with a significantly low income or no income at all will not be eligible to file for bankruptcy under Chapter 13. The amount of debt you have accumulated may also factor into your eligibility to file under this chapter of the law. For example, debtors who owe more than $1,010,650 in secured debts or $336,000 in unsecured debts will lose their eligibility to utilize Chapter 13 as a debt relief solution.

Experienced Help with Chapter 13 Bankruptcy

Certain conditions must be met before you will be permitted to file bankruptcy anywhere in the U.S., including Florida. One of these conditions is receiving credit counseling from an agency that has been approved by the office of the United States Trustee. A $306 court filing fee will also be required for your bankruptcy petition. Once these actions have been taken, the court process begins. One of the most difficult aspects throughout the process will undoubtedly be the creation of your repayment plan, which should be not formulated without first receiving advice from a Clearwater bankruptcy lawyer.

Together, you and your attorney can devise a repayment plan that will best fit your needs and lifestyle. Under my guidance, a structured legal plan may be created that provides you with an affordable payment plan which should not impede your ability to live. The length of a repayment schedule can range anywhere from three years to five years. Upon reviewing your case, we can decide the time that will most appropriately allow you to comfortably pay off your debts. I am here to help meet your needs at all times and I can work around issues that may seem like barriers to your ability to successfully file for bankruptcy. Most often, these barriers can be addressed and worked out accordingly.