Orlando Chapter 13 Bankruptcy Attorney
Whether you purchased a car, a home, or just needed to cover your daily expenses, you have likely incurred some debt during your life. Debt is not necessarily bad but if yours becomes unmanageable, it can be devastating. Fortunately, a Chapter 13 bankruptcy provides you with the option of repaying your debt in a manner that is more affordable, and that will not impact your credit as much as Chapter 7. If you are ready for a clean financial slate, it is important to speak to our Orlando Chapter 13 bankruptcy attorney to learn more about your options.
How Does Chapter 13 Bankruptcy Work?
Unlike Chapter 7, a Chapter 13 bankruptcy does not discharge or eliminate your debt. Rather, the debt is restructured into a repayment plan. Repayment plans in Chapter 13 extend between three and five years. Spreading your debt out over this time results in smaller payments that are more manageable for you to pay.
As in all bankruptcy cases, a trustee will be assigned to your case after you file. The bankruptcy trustee will oversee all aspects of your case, including receiving the payments for the plan and distributing them to your creditors. The bankruptcy case is not finalized until all payments have been made. At that time, some remaining debt may be discharged, as long as you qualify.
Eligibility Requirements for Chapter 13 Bankruptcy
All types of bankruptcy have eligibility requirements and Chapter 13 is no different. To qualify, you must meet the following requirements:
- Regular source of income: Chapter 13 bankruptcy is also known as a wage-earner’s bankruptcy. This is due to the fact that you must have a regular source of income to qualify. If you are filing as a married couple, only you or your spouse must have a regular source of income.
- You are an individual or married couple: Only married couples and individuals are allowed to file Chapter 13. Businesses are ineligible.
- Debt levels: Chapter 13 only addresses certain amounts of debts. To qualify, you cannot have more than $465,275 in unsecured debt or more than $1,395,875 in unsecured debt.
- Previous bankruptcies: If you have filed Chapter 7 in the last four years, or Chapter 13 in the last two, you do not qualify to file again until that time has passed.
- Previous dismissals: If you had a previous bankruptcy case dismissed within the previous 180 days because you failed to appear in court or you did not comply with a court order, you do not qualify.
- Credit counseling: You must attend a credit counseling course to obtain financial management skills before you can file Chapter 13.
Our Chapter 13 Bankruptcy Attorney in Orlando Can Determine if You Qualify
At Ronald Cutler, our Orlando Chapter 13 bankruptcy attorney can determine if you are eligible and advise on the next steps to take. We can also help create your repayment plan that will make your debt more manageable and that will be approved by the court. Call or text us now at 386-490-9949 or contact us online to book a free consultation.