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Miami Chapter 13 Bankruptcy Attorney

If you are carrying significant debt and find that you do not earn enough income to currently repay them, Chapter 13 bankruptcy may be the right solution for you. Some people are hesitant to file bankruptcy because they do not want to lose any property, or they do not want their credit score to take a hit. Fortunately, a Chapter 13 bankruptcy can help you repay your debt over time while avoiding the negative consequences. Below, our Miami Chapter 13 bankruptcy attorney explains the process and the factors to consider to determine if it is right for you.

Understanding Chapter 13 Bankruptcy

Also known as a wage-earner’s bankruptcy, Chapter 13 bankruptcy is a good option for individuals and married couples. Businesses cannot file Chapter 13. Unlike in a Chapter 7 bankruptcy, debt is not discharged during Chapter 13. Instead, it is restructured into a repayment plan that extends between three and five years. This allows you to repay your creditors but in a manner that is more affordable for you. Once you have made all payments, any remaining debt you carry will be discharged unless you do not qualify.

To qualify for Chapter 13, you can only carry a certain amount of debt. You must also have a regular source of income. If you are filing as a married couple, only you or your spouse must have a regular source of income.

Benefits of Filing Chapter 13 Bankruptcy

Filing Chapter 13 bankruptcy has many benefits and for some, these are even greater than those that come with Chapter 7. You do not have to pass a means test, which makes it a good option for people who do not qualify for Chapter 7. It also allows you to repay your debt in a way that is easier to manage. Also unlike in Chapter 7, you will not lose any property. This makes Chapter 13 a better option for people who do not want to face losing their home, vehicle, or other assets.

Any bankruptcy you file will remain on your credit report for several years. A Chapter 13 bankruptcy will only remain on your credit for seven years, contrary to the ten years a Chapter 7 will stay on the report. Still, most people find that their credit starts to improve between 12 and 18 months after filing. It is also important to remember that if you do not file bankruptcy, the debt will remain on your credit report but still go unpaid. This can damage your credit even more than filing bankruptcy.

Our Chapter 13 Bankruptcy Attorney in Miami Can Advise You of Your Options

If you think bankruptcy is the right option for you, it is important to obtain legal representation. At Ronald Cutler, our Miami Chapter 13 bankruptcy attorney can help you determine if it is the right option for you and if so, guide you through the process so you obtain the best possible outcome. Call us now at 386-490-9949 or contact us online to schedule a free consultation.

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