Tampa Chapter 13 Bankruptcy Attorney
Under federal law, there are many different types of bankruptcy you can file. Individuals who have unmanageable debt levels typically file either Chapter 7 or Chapter 13. Also known as a wage-earner’s bankruptcy, Chapter 13 does not discharge all of your debt. Instead, a repayment plan is drafted that restructures your debt. Below, our Tampa Chapter 13 bankruptcy attorney explains more.
How Does Chapter 13 Bankruptcy Work?
Of all the different elements of Chapter 13 bankruptcy, perhaps the most important is the repayment plan. You must draft this plan and file it with the court within 14 days of filing bankruptcy. If a judge finds the plan feasible and fair, they will approve it. They may also ask you to make certain changes to it. Repayment plans in Chapter 13 typically span between three and five years. Spreading your debt out over this amount of time can make it more affordable to repay.
Chapter 13 bankruptcy has many benefits. The first is that you do not have to pass a means test as you do with Chapter 7, and you are not at risk of losing any property. Additionally, it is generally easier to rebuild your credit after a Chapter 13 than it is with Chapter 7.
Qualifying for Chapter 13
Although you do not need to pass a means test when filing Chapter 13, there are still certain requirements you must meet. These include:
- You have a regular source of income. If you and your spouse are filing together, only one of you must have a regular source of income.
- You have not filed Chapter 7 in the past four years, or Chapter 13 in the past two years.
- Your tax filings must be current.
- Your unsecured debt must be below $419,275 and your unsecured debt must be below $1,257,850.
Debt You Can Discharge During Chapter 13 Bankruptcy
Although it is true that the majority of debt is not discharged during a Chapter 13 bankruptcy, this is not always the case. Once the repayment plan has been completed and you have made all payments, any remaining debt can be discharged. Qualifying debts include:
- Credit card debt: Most people who file bankruptcy have some credit card debt they would like to discharge. Credit card debt is classified as non-priority debt, which means outstanding balances can be discharged.
- Medical debt: One of the main reasons people file bankruptcy is to discharge medical debt, and this can be done once the payment plan is complete.
- Personal loans: Unsecured personal loans, such as payday loans, can be discharged after the repayment plan is complete.
Certain types of debt cannot be discharged. These include tax debt, child support and alimony obligations, and more.
Our Chapter 13 Bankruptcy Attorney in Tampa Can Review Your Case for Free
If you are struggling with debt and do not know how you will repay it, our Tampa Chapter 13 bankruptcy attorney at Ronald Cutler can help. Our experienced attorney can advise on whether you are eligible and guide you through the process to give you the best chance of a favorable outcome. Call or text us now at 386-490-9949 or contact us online to schedule a free consultation.