Fort Lauderdale Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a great option for people who either do not qualify for Chapter 7, or who want to ensure they do not lose any property during the process. A Chapter 13 bankruptcy will not discharge, or eliminate, your debt in the same manner a Chapter 7 will. Instead, your debt is reorganized into a repayment plan. It is for this reason that Chapter 13 is also known as a wage earner’s bankruptcy. Repayment plans in Chapter 13 bankruptcies typically extend between three and five years. Below, our Fort Lauderdale Chapter 13 bankruptcy attorney explains more about the process.
Determining Eligibility for Chapter 13
Unfortunately, not everyone qualifies for Chapter 13. While you do not have to pass a means test the way you do when filing Chapter 7, you must earn a regular income. If you are filing with your spouse, only one of you must earn a regular income. Additionally, Chapter 13 only deals with a certain amount of debt. If your debt exceeds that limit, you will have to explore other options, such as filing Chapter 11 bankruptcy.
The Automatic Stay
Immediately after any bankruptcy is filed, the bankruptcy court will issue an automatic stay. The automatic stay prohibits debt collectors and creditors from contacting you in an attempt to collect on the debt. Creditors and debt collectors are also prohibited from taking legal action against you, such as filing a lawsuit. The automatic stay remains in effect until your bankruptcy case is finalized.
You Can Stop Foreclosure
People often file Chapter 13 bankruptcy when they are about to lose their home to foreclosure because they are behind on mortgage payments. The mortgage debt that is due can also be reorganized into the repayment plan, allowing homeowners to keep their house. Even if a lender had previously denied a loan modification, a Chapter 13 bankruptcy can force them to make the necessary changes so the debt is more affordable for you to repay.
The Repayment Plan
Of all the different elements of Chapter 13 bankruptcy, the repayment plan is by far the most important. You must submit your proposed plan to the court within 14 days of filing. If it is feasible and fair, the judge will approve it. When creating your repayment plan, it is important to work with a Fort Lauderdale Chapter 13 bankruptcy. While your creditors will want to receive as much as possible in installments, you also want to pay the lowest. A attorney can negotiate a plan on your behalf and help you draft one that will be approved by the court.
Our Chapter 13 Bankruptcy Attorney in Fort Lauderdale Can Advise On Your Case
Chapter 13 bankruptcy can be a great option when you are struggling with debt, but you need legal representation when going through the process. At Ronald Cutler, our Fort Lauderdale Chapter 13 bankruptcy attorney can help you create an appropriate repayment plan and guide you through the process to make it as easy as possible for you. Call us now at 386-490-9949 or chat with us online to book a free consultation.