Filing for Chapter 13 Bankruptcy may allow you to overcome a large debt load while limiting the property you must relinquish. A Chapter 13 Bankruptcy is more complex than a Chapter 7 Bankruptcy, and it can take anywhere from three to five years to complete, but a Chapter 13 Bankruptcy might be the most appropriate route for you.
To schedule an appointment for a free Chapter 13 bankruptcy consultation, call 407-926-0324 or contact us online. We are ready to help you!
Debt Relief for Individuals and Sole Proprietorship Businesses
In a Chapter 13 bankruptcy, all of your dischargeable debts are reorganized into one monthly payment. For three to five years, you will make monthly payments to a Chapter 13 trustee, who in turn distributes those payments to your creditors. At the end of the three to five year period, your dischargeable debts are discharged (meaning you are no longer legally obligated to pay them). A Chapter 13 Bankruptcy might be appropriate for individuals who earn income and want to limit the assets they must relinquish to the Bankruptcy trustee. A Chapter 13 Bankruptcy might also be appropriate for wage earners who are behind on their mortgage payments and would like to become current over the course of the 3-5 year payment plan. A Chapter 13 Bankruptcy might also be appropriate for wage earners with a second mortgage, home equity loan, and/or home equity line of credit (HELOC) and whose home is not worth as much as their first (primary) mortgage - the second mortgage may be stripped away and classified as unsecured debt like any other.
Secured Debts
Secured debts like home mortgages or car payments can sometimes be restructured under a Chapter 13 Bankruptcy plan. However, the amount owed on most home mortgages and consumer car loans cannot be lowered. On the other hand, by paying only a percentage of the amount owed on your unsecured debts, you might be able to free up income and allow yourself to catch up on payments to avoid foreclosure or repossession.
Unsecured Debts
In a Chapter 13 Bankruptcy, the payment you make to the chapter 13 trustee each month of your plan will be distributed to your unsecured creditors in proportion to how much money you owe to each of them. When you've completed your chapter 13 payment plan in full, unsecured debts that remain unpaid will be discharged by the bankruptcy court, and you will no longer be legally obligated to pay them. Schedule an appointment for a free initial consultation with Orlando, Florida bankruptcy attorney Matt Tabakman by calling 407-926-0324 or by contacting us online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
