Naples Chapter 13 Bankruptcy Attorney
People who do not qualify for Chapter 7 bankruptcy, or who want to ensure they do not lose any property, often find that Chapter 13 is a great option. Unlike in Chapter 7, debt is not discharged or eliminated in Chapter 13. Rather, it is restructured into a repayment plan that extends between three and five years. Spreading the debt out over that period of time makes payments more affordable for borrowers. Below, our Naples Chapter 13 bankruptcy attorney explains how to determine if you are eligible, and the benefits this type of bankruptcy brings.
Eligibility Requirements for Chapter 13
Some people find it easier to qualify for Chapter 13 because it does not involve passing a means test in the same way as Chapter 7. However, you must have a regular source of income, which is why Chapter 13 is also called the wage-earner’s bankruptcy. Chapter 13 will also only address a certain amount of debt. If the debt you want to restructure is valued at more than this, you will have to explore other options. Many people in this situation file Chapter 11 instead, which can handle larger amounts of debt.
Creditors Will Stop Calling
One of the biggest benefits of filing any type of bankruptcy is the issuance of the automatic stay. The automatic stay is issued as soon as your bankruptcy petition is filed. It prohibits creditors and debt collectors from calling you or writing letters in an attempt to collect the debt. The automatic stay can also protect you from lawsuits, wage garnishments, and more. The automatic stay remains in effect until your case is finalized.
Chapter 13 Can Stop Foreclosure
One reason people file Chapter 13 is to stop foreclosure on their home. The automatic stay applies to mortgage lenders, as well, so it will stop a short sale or any other action from proceeding. Even if your lender has refused a repayment plan or a loan modification, Chapter 13 can force them into it. If you are behind on mortgage payments, you can include the arrears in your repayment plan. This can allow you to become current on your mortgage over time and with payments that are more affordable.
Drafting the Repayment Plan
A Chapter 13 bankruptcy relies on the repayment plan, so it is important to draft one that will be approved by the court. Your plan must be submitted to the court within 14 days of filing bankruptcy. It must also be fair and feasible in order for a judge to approve it. A Naples Chapter 13 bankruptcy attorney can negotiate with your creditors to ensure the plan shows good faith.
Call Our Chapter 13 Bankruptcy Attorney in Naples for a Free Consultation
If you have incurred a lot of debt and are finding it unmanageable, our Naples Chapter 13 bankruptcy attorney at Ronald Cutler can determine if you are eligible and help you create your repayment plan. Call or text us now at 386-490-9949 or contact us online to schedule a free consultation.
