Chapter 13 Bankruptcy
Bankruptcy laws help people get a fresh start who can no longer pay their creditors. A Chapter 13 bankruptcy is known as the “wage earner reorganization” bankruptcy because it enables an individual with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over a three to five year period. If the debtor’s current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period for cause. If the debtor’s current monthly income is greater than the applicable state median, the repayment plan is usually set up for five years. In any case, no plan may exceed five years and during this time the law forbids creditors from continuing collection efforts. The main factor of qualification for a Chapter 13 bankruptcy is if the debtor has enough income, after expenses, to realistically repay their debt according to the terms of the schedule appointed by the court. There is also a hardship the debtor can file after a Chapter 13 schedule has been put into affect when circumstances that become out of the control of the debtor delay or prevent payments.
Thousands of Americans turn to Chapter 13 each month to help take control of their financial situation and some of the reasons you should consider Chapter 13 bankruptcy include:
- You are behind in paying your bills
- You are looking for extra time to pay your bills
- You are facing foreclosure and you want to keep your home
- You are facing car repossession and you want to keep your car
- You are in debt as a result of temporary financial setbacks such as loss of employment, injury, or illness
- You have regular income and you have the ability to make a lower, interest-free monthly payment required under Chapter 13
If any of the above situations pertain to you, Attorney Robert Pflueger at Orlando Bankruptcy Law Firm is an expert in Chapter 13 bankruptcy laws and he can help you. During your consultation, he will explain the advantages of choosing Chapter 13, the eligibility requirements, and how the process works from start to finish.
Chapter 13 Bankruptcy Overview
In summary, Chapter 13 bankruptcy was designed to stop to foreclosures, repossessions, wage garnishments, lawsuits, and creditor harassment. Debtors who have valuable assets, such as a home, that is not completely covered by exemptions and that they wish to keep, prefer Chapter 13. This is possible because under Chapter 13, a debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions. Instead of dealing with multiple creditors and bills, Chapter 13 creates a single repayment plan that is managed by the court and since this plan will require regular monthly or biweekly payments, Chapter 13 is usually only appropriate for a debtor who has a regular source of income. A Chapter 13 bankruptcy allows you to consolidate, prioritize, repay, and, in some cases, reduce or eliminate old debts while receiving the powerful protection against creditors that the bankruptcy court provides. Your plan will be decided at a confirmation hearing where the court will either approve or disapprove your plan, depending on whether it meets the Bankruptcy Code’s requirements for confirmation. Chapter 13 is very different from Chapter 7, since the chapter 13 debtor usually remains in possession of their property and they make payments based on the debtor’s anticipated income over the life of the plan. Unlike Chapter 7, the debtor does not receive an immediate discharge of debts.
Chapter 13 bankruptcy can be a complicated process and mistakes could potentially cost you the protection of your automatic stay or prevent your Chapter 13 bankruptcy repayment plan from being approved. Florida laws differ from Federal laws and they are very complex. With over 30 years experience dedicated solely to bankruptcy law, Robert H Pflueger will help you make the best decision with all of your credit and debt problems. To maintain certain assets, you will need to meet specific criteria for living in Florida for a minimum quantity of time. Each and every asset must be reviewed to see if it can be exempt from repossession and Robert H Pflueger will help you determine this prior to your bankruptcy filing. On the other hand, Florida bankruptcy laws can function in your favor in comparison to other states and Chapter 13 can be an enormous relief from stress. Despite your growing debt and the constant intimidation you face from collection agencies, there are options to help you regain control if you take immediate action. Having the appropriate lawyer will make an enormous difference in your financial outcome so before it is too late, call Robert H Pflueger at Orlando Bankruptcy today.