Chapter 13: Reorganization Bankruptcy
People who make too much money or own too many assets to qualify for a Chapter 7 bankruptcy still have an opportunity to reorganize their debt.
If you have a regular source of income, you can file bankruptcy under Chapter 13 of the Bankruptcy Code. Often called the wage earner's plan, Chapter 13 bankruptcy allows you to pay off all or a portion of your debts within three to five years. You are not required to pay back all of your debt! The bankruptcy laws control the amount you must repay.
Under Chapter 13 bankruptcy, the money you owe on your mortgage, vehicle loans, student loans, credit card debts and other unsecured debts is consolidated into one reasonable, interest-free payment. While you are in a Chapter 13 debt repayment plan, your creditors cannot attempt to collect from you directly. That means no more harassing phone calls, wage garnishments or repossessions.
Based on Your Ability to Pay
Many people do not realize that the payments they are asked to make under a Chapter 13 bankruptcy are based on an amount they can afford. Reasonable living expenses, child support payments, alimony and other payments you are ordered to make are deducted from your income available for debt repayment. You are not required to pay all of your debt.
At Roberts & Robold, P.A., our bankruptcy attorneys have helped clients who were drowning in debt establish affordable repayment plans and move forward.
Chapter 13 Stops Foreclosures, Repossessions
Chapter 13 provides the chance for people to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings. Chapter 13 bankruptcy will also stop your car from being repossessed by the finance company.
If you are in danger of losing your home to foreclosure or your car to repossession, it is important to act now. Please contact the Florida bankruptcy lawyers at Roberts & Robold today. We can help you reorganize your debt and rebuild your credit.
Many Debts Are Still Discharged
In many Chapter 13 cases, once the reorganization is complete your remaining debts may be discharged. The end result for these debts is similar to a Chapter 7 Bankruptcy — your obligation to pay is terminated and you can focus on rebuilding your financial future.
Learn more: Visit our bankruptcy information center.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
