WHAT IS CHAPTER 13 BANKRUPTCY?
Many people elect to petition for Chapter 13 when foreclosure threatens in order to save their home. It is much easier to qualify for a Chapter 13 bankruptcy if in taking the means test you determined that you are not eligible to file under Chapter 7 due to a number of reasons including too high of an income.
To file under Chapter 13 your unsecured debts must not exceed $337,000, and your secured debts must not exceed $1,010,000.
Another major difference is in Chapter 7 your debt is discharged within a few months, whereas Chapter 13 takes 3 to 5 years before your debt is discharged. Working with a West Palm Beach bankruptcy lawyer at the Walker Law Firm, P.A. will give you the advice and guidance necessary to smooth your way through the process.
HOW DOES THE BANKRUPTCY FILING PROCESS WORK?
The first step of the bankruptcy process is to supply your attorney with your income and expenses and all the information you have regarding all creditors and your debts including taxes as well as any potential future liabilities. Once your petition is filed with the court, an automatic stay will stop all collection activity including law suits, and give you relief from harassing phone calls and letters. Based on your financial information a repayment plan will be constructed.
The Chapter 13 trustee will set the date for your meeting with your creditors. Generally very few creditors attend. Once the Trustee approves your repayment plan the monthly due date for your payments will be set. Payments are made to the Trustee who then disburses the funds. At the end of your payment plan the unsecured debt which remains unpaid is discharged. Working with a knowledgeable Chapter 13 attorney can be a huge advantage in helping you to succeed.
You may be surprised how quickly your credit can be rebuilt. Read our page on life after bankruptcy for some tips. While it is not always the right solution there are a number of benefits of bankruptcy. There are a number of bankruptcy questions that you may have, and our website seeks to help address some of those concerns. Our team is also prepared to answer any further inquiries you may have as well.
WHAT DEBT IS ELIGIBLE FOR CHAPTER 13?
Due to the many restrictions of filing for Chapter 7 bankruptcy, as mentioned briefly above, Chapter 13 enables people struggling with certain forms of debt to establish a repayment plan that they could not otherwise do in another Chapter. Under Chapter 7 a debtor will seek to have the majority of their debt discharged or eliminated, though there are certain forms of debt that cannot be cleared by this process. The Walker Law Firm, P.A. will help you determine which category your debt fall under in order to best fight of your current debt. Examples of non-dischargeable debt include:
- Money that is owed for domestic support (alimony or child support)
- Student loans (there are rarely exceptions)
- Debt from certain taxes
- Debt to governmental agencies or courts (criminal fines, penalties, etc.)
- Debt for homeowners association fees
- Debts accrued through a personal injury lawsuit that you were at fault for
CONTACT YOUR WEST PALM BEACH CHAPTER 13 ATTORNEY TODAY
Are you currently trying to decide if you should file for bankruptcy or not? If you are at all on the fence, please do not hesitate in contacting us at the Walker Law Firm, P.A. to discuss any questions or concerns you may have. We understand how difficult it is to experience debt, and we want to lead you to a decision that is best suited for your unique circumstances.
A skilled legal professional from our office will address not only the different forms of bankruptcy, but also the alternatives there are to allow you the chance to make an educate decision for your course of action. Our primary objective is to help you reach debt relief, one way or another.
Other areas we serve include Jupiter, Palm Beach Gardens, Boca Raton, Lake Worth, among many others. Give us a call at 561-689-1512 today for a free initial consultation!