Florida Chapter 13 Bankruptcy Attorney
If you have high levels of debt you do not think you can repay, Chapter 13 may be a good solution. While a Chapter 7 bankruptcy will discharge your debt so you are no longer responsible for paying it, Chapter 13 will restructure your debt into a repayment plan. Repayment plans in Chapter 13 span between three and five years, which can lower the amount of installment payments and make the debt more affordable. Below, our Florida Chapter 13 bankruptcy attorney explains the eligibility requirements and the benefits that come with it.
How to Determine if You Qualify for Chapter 13
Qualifying for Chapter 13 is sometimes easier than qualifying for Chapter 7. This is due to the fact that you do not have to pass the means test as you do in Chapter 7. However, to be eligible for Chapter 13, you must have a regular source of income. It is for this reason that Chapter 13 is sometimes known as the wage-earner’s bankruptcy. Chapter 13 also only handles certain levels of debt. If you carry debt that is higher than this, you can still file bankruptcy but you do not qualify for Chapter 13. You may have to file Chapter 11 instead, which addresses much higher levels of debt.
Creating the Repayment Plan
The court does not create the repayment plan in Chapter 13 bankruptcy. This is your responsibility when you file and you must submit it a maximum of 14 days after you have filed your bankruptcy petition with the court. It is recommended that you always work with a Florida Chapter 13 bankruptcy attorney who can help you create your repayment plan. A attorney will negotiate with your creditors on your behalf to reduce the amount owed in the repayment plan.
After you have created a repayment plan, you must submit it to the court for approval. A judge will only approve a plan if it is fair and feasible. It is important to remember that the plan has to be realistic in order to be approved. Chapter 13 bankruptcies fail more often than Chapter 7, so it is critical that you make sure you have the ability to repay the debt.
The Automatic Stay
In all bankruptcy cases, an automatic stay is issued as soon as the bankruptcy petition is filed with the court. The automatic stay prevents creditors from contacting you in an attempt to recover the debt throughout the entire bankruptcy case, including when you are making payments according to the plan. Creditors are also prohibited from taking legal action against you when an automatic stay is in place.
Call Our Chapter 13 Bankruptcy Attorney in Florida for Legal Help
If you are struggling with high levels of debt, our Florida Chapter 13 bankruptcy attorney at Ronald Cutler can help. Our seasoned attorney can determine if you qualify and negotiate a repayment plan that is fair and will be approved by the court. Call or text us today at 386-490-9949 or reach out to us online to book a free review of your case.