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Chapter 13 bankruptcy, often referred to as a wage earner’s plan, allows individuals with regular income to develop a plan to repay all or part of their debts. Unlike Chapter 7, which involves liquidating assets to pay off creditors, Chapter 13 focuses on reorganization. This means you can keep your property, such as your home and car, while making manageable payments over a three to five-year period. This type of bankruptcy is particularly beneficial for those who have fallen behind on mortgage payments or are facing foreclosure. By working with a bankruptcy attorney, you can create a repayment plan that fits your financial situation and helps you regain control over your finances.
Before filing for bankruptcy, there are some things you should know about the immediate and future repercussions of such a decision, and discuss your options with a bankruptcy attorney or a Chapter 13 lawyer serving Clearwater, FL. While many people may believe that bankruptcy will just eliminate all of their debts and never return, that is not necessarily the case for everyone. Maintaining payments on secured debts is crucial to avoid foreclosure or loss of property. This can be a useful resource for those who are having trouble obtaining the financial stability they have always imagined. Filing for bankruptcy can have lasting impacts, so anyone considering filing should talk to a 13 Chapter bankruptcy lawyer in Clearwater, FL and contact Ziegler Diamond Law in order to understand what it truly entails in order to make the best decision.
It is also important to make regular mortgage payments during a Chapter 13 bankruptcy proceeding to avoid losing the home to foreclosure.
Just because someone applies for bankruptcy does not mean they are automatically approved. There are variables that must apply to the applicant, in order for him or her to have a chance at being approved. Individuals seeking Chapter 13 bankruptcy must receive credit counseling from an approved credit counseling agency within 180 days prior to filing. It is crucial not to incur additional debt after a bankruptcy plan is confirmed, as it can compromise the debtor’s ability to complete the plan. Chapter 13 bankruptcy is also called a wage earner’s plan. A Clearwater, FL Chapter 13 bankruptcy lawyer will share with you that anyone who wants to file paperwork for bankruptcy must have one of the following:
The bankruptcy estate includes the restructuring of debts and assets during the bankruptcy process. This allows debtors to keep certain assets, like their home, while managing their debts within the bankruptcy estate as part of a court-approved repayment plan.
When it comes to bankruptcy, the focus is on someone’s earnings in comparison to how much they owe in debt. The exact number does not matter so much as is one’s realistic ability to pay it off. If someone does not make enough money to where they can afford to pay for living expenses and outstanding monthly dues, then this can result in immense financial hardship. Individuals may reorganize their debts in Chapter 13 and continue to keep their property as long as the repayment plan is adhered to, making regular payments essential for retaining property and fulfilling the terms of the bankruptcy plan. If you find yourself unable to pay even a small amount back into your debts each month, then you may want to meet with a Chapter 13 bankruptcy lawyer for Clearwater, FL to get advice on whether a bankruptcy filing is right for you.
While there isn’t a minimum amount of debt, Chapter 13 does have maximum “debt limits.”
Filing for Chapter 13 bankruptcy involves creating a repayment plan to pay off a portion or all of your debts over a period of three to five years. This plan is designed to help individuals with regular income manage their debt and make timely payments to their creditors. By establishing a repayment plan, you can repay mortgage arrears, unsecured debt, and other debts while protecting your assets from foreclosure or repossession. A bankruptcy attorney can help you navigate the bankruptcy process and create a personalized repayment plan that suits your financial situation.
There are a couple types of bankruptcy, referred to as Chapter 7 and 13 Chapter. The bankruptcy court plays a crucial role in determining eligibility and overseeing repayment plans. Chapter 13 enables individuals with regular income to develop a plan to repay their debts. Someone applying for bankruptcy may want to meet with a Clearwater, FL Chapter 13 bankruptcy lawyer, for advice regarding which chapter may work best in their favor. As for 13 Chapter, this may be best for people who do not want to chance their vehicles, property or other items being taken away. But, in exchange for being able to keep belongings, the applicant must make payments for these items on loan over the course of three to five years. Regular payments on secured debts are necessary to qualify for a bankruptcy discharge. The downside to 13 Chapter is that the applicant cannot have a total debt that surpasses the maximum unsecured (credit cards, utilities) and secured debts (loans for home or vehicles).
The repayment plan is based on the debtor’s current monthly income and how it compares to the state median. This dictates the duration and structure of the repayment plan. The applicant must also have a steady income to support the repayment plan. If the applicant does not have a reliable source of income, then they may not be eligible for Chapter 13.
A person who has accrued a large amount of debt through medical care costs, loans, and credit card bills, may want to apply for Chapter 7 bankruptcy. Filing a bankruptcy petition is crucial as it initiates legal proceedings and sets the stage for determining payment schedules. Under this chapter, the applicant may have his or her debts eradicated. However, in order for these debts to be erased, a trusted Clearwater, FL Chapter 13 lawyers stresses that the person’s property may be relinquished. Someone who does not mind their belongings being taken if it means they can start fresh financially, may want to choose this chapter in their application process. Domestic support obligations must generally be paid in full unless the debtor commits all disposable income to a five-year repayment plan.
If you are considering filing for bankruptcy, you should explore your options with an experienced Chapter 13 bankruptcy lawyer Ziegler Diamond Law. The first mortgage is considered when establishing a payment plan and managing equity in a home. Take your first step towards a better financial future and call us today!
Filing for Chapter 13 bankruptcy offers several significant benefits. One of the primary advantages is the ability to repay mortgage arrears and stop foreclosure proceedings, allowing you to keep your home. Additionally, Chapter 13 can help you eliminate unsecured debt, such as credit card debt and medical bills, while also providing a structured way to repay secured debts like car loans. Another benefit is the potential to reduce the interest rate on certain debts, making your monthly payments more manageable. By adhering to the repayment plan and making timely payments, you can also improve your credit score over time. A bankruptcy attorney can guide you through the process, ensuring you understand all the benefits and how they apply to your unique financial situation.
The bankruptcy process begins with the filing of a bankruptcy petition with the bankruptcy court. This petition must include a comprehensive list of all your debts, assets, and income, along with a proposed repayment plan. The repayment plan outlines how you intend to pay off your debts over a specified period, typically three to five years. Once the plan is submitted, the bankruptcy court will review and approve it, ensuring it meets all legal requirements. After approval, you will start making monthly payments to a bankruptcy trustee, who will then distribute the funds to your creditors. Working with an experienced bankruptcy attorney is crucial to ensure your repayment plan is feasible and compliant with bankruptcy law, helping you navigate the complexities of the bankruptcy process.
The bankruptcy court plays a pivotal role in the Chapter 13 bankruptcy process. It is responsible for reviewing and approving your repayment plan, ensuring it adheres to the requirements set forth by bankruptcy law. The court also oversees the entire repayment process, providing protection from creditor harassment and preventing creditors from seizing your assets while you are making payments under the plan. If you fail to make timely payments or comply with the terms of your repayment plan, the court has the authority to dismiss your case. A bankruptcy attorney can help you understand the court’s role and ensure your rights are protected throughout the bankruptcy proceedings, providing you with the support and guidance needed to successfully complete your Chapter 13 plan.
If you are at risk of losing your home due to the foreclosure process, please understand that a number of legal and financial strategies and tools may be available to you. Depending on the unique nature of your situation, one or a combination of these tools may allow you to stall your foreclosure or even remedy the risk that you will be foreclosed upon. It is important to understand that not every strategy and tool available is appropriate for every homeowner. As a result, it is generally a good idea to schedule a confidential consultation with a Clearwater, FL Chapter 13 lawyer bankruptcy before creating a specific foreclosure avoidance plan. Child support payments received by the debtor are excluded from the disposable income calculation.
If your financial situation meets certain criteria, it may make sense to file for bankruptcy in order to catch up what you owe on your Clearwater, FL home. It may seem odd at first to contemplate filing for bankruptcy in order to address a risk of foreclosure. But in the end, the legal tool that is bankruptcy may both free up certain income and re-prioritize specific debts in ways that allow you to potentially keep your home. A Clearwater, FL Chapter 13 bankruptcy lawyer will be able to clarify your legal and financial options after learning about your unique situation. While priority and secured claims must be paid in full, unsecured creditors may receive less than the total amount owed.
When an individual applies for bankruptcy, a so-called “automatic stay” is granted that pauses the ability of many creditors to collect on debts owed. Filing for Chapter 13 generally stops collection efforts, lawsuits, and wage garnishments. Depending on the details of your financial situation, you may be able to take advantage of this automatic stay in order to delay the foreclosure process. Unless an exception applies, your mortgage debt should be covered by this “pause button.” You can then use this time to become current on your debts or otherwise reposition your finances in order to keep your house.
If bankruptcy is not the best option for you and your family, please know that you may qualify for a repayment plan through your lender, or for programs designed to keep homeowners in their homes. Your 13 Chapter bankruptcy lawyer located in Clearwater, FL may also have alternative ideas to help you avoid foreclosure. Please be aware of scammers whose offers seem too good to be true. If you are not working with a licensed Clearwater, FL Chapter 13 bankruptcy lawyer, please know that these professionals are likely your best available resource. They will generally be able to tell you if a certain program, offer or organization is actually a scam in disguise.
If you have questions about bankruptcy and/or foreclosure, please consider scheduling a consultation with an experienced Chapter 13 bankruptcy lawyer in Clearwater, Florida at your earliest possible convenience. As time passes, your legal options may become more limited. As a result, seeking legal guidance as soon as you develop concerns about bankruptcy and/or foreclosure is generally a good idea. Once our Clearwater, FL Chapter 13 attorney understands your unique situation, he or she will be able to advise you about any legal options that may be available to you and answer any questions you may have. Individuals must demonstrate that their monthly income exceeds their monthly expenses to successfully fund a repayment plan.
Struggling with the potential risk of losing your home is a uniquely stressful reality. Please understand that you do not need to navigate this situation alone. Ziegler Diamond Law: Debt Fighters is here to help. We offer a free consultation to discuss your financial options and provide reassurance during this challenging time. Utilizing payroll deductions increases the likelihood of timely payments and helps ensure that the debtor meets the obligations of the plan.
If you are considering filing for bankruptcy, you probably have many questions for your Chapter 13 bankruptcy lawyer in Clearwater, FL regarding the process. Chapter 13 bankruptcy allows individuals to create a structured repayment plan for debt relief. This plan can consolidate debts, including regular mortgage and car payments, alongside other payments such as credit card debt, taxes, and utility bills. One of the most common initial questions many people have is what the difference is between the two most frequently used types of bankruptcy for individuals, Chapter 7 and 13 Chapter. While both Chapter 7 and Chapter 13 can provide relief in a detrimental financial situation, many factors, including an individual’s desires and intentions should be considered when filing for bankruptcy. The case filing fee for Chapter 13 is $310, and there is also a miscellaneous administrative fee of $75, which must typically be paid at the time of filing. Read on for a summary provided by our Chapter 13 bankruptcy lawyer in Clearwater, FL for key differences between the two types of bankruptcy proceedings.
In exchange for discharge of debt, the filer may have to give up certain items of property that will later be sold to satisfy their debt. Bankruptcy law requires debtors to maintain payments on domestic support obligations, such as child support and alimony, throughout their repayment plan.
There are stricter standards for eligibility for Chapter 7 then for 13 Chapter. The petitioner must pass the “means test” in order to be eligible for a Chapter 7 filing, meaning the petitioner must earn less than the median income for a family of the same size in the area in which they live. Working with a Clearwater, FL Chapter 13 bankruptcy lawyer can help to explain to you the criteria necessary for passing the means test. Filing for Chapter 13 bankruptcy has advantages, particularly in terms of enabling individuals to retain valuable assets like their home and car while managing their debt repayments.
The petitioner must not have previously filed for a Chapter 7 in the last 8 years, or a Chapter 13 in the past 6 years. An individual is ineligible to file for Chapter 13 relief if a prior bankruptcy petition was dismissed within the last 180 days due to willful failure to appear in court or comply with orders. Certain items of property are exempt from being surrendered to satisfy the petitioner’s debts, including his or her primary residence, primary vehicles, insurance policies, personal property, retirement plans; and the petitioner has a certain degree of control over which items of property they decide to keep. However, a Clearwater, FL Chapter 13 bankruptcy lawyer will tell you that certain items are only exempt up to a certain value. Any property that is not exempt is available to the trustee for the purpose of paying creditors. Provides the petitioner with an automatic stay, which prevents creditors from attempting to collect on a debt.
The petitioner enters into a repayment plan to repay the debt over time. A crucial part of the filing process is submitting a debt repayment plan developed through credit counseling, which outlines how debts will be addressed and repaid over time.
The petitioner’s specific repayment plan will depend on several “tests,” including their disposable income, the total amount of debt, and their “non-exempt” property. A debtor’s current monthly income influences the duration of the repayment plan, with specific calculations determining how much income must be allocated to repay debts over three to five years.
Items of property do not need to be surrendered unless the petitioner decides he or she does not want to assume the debt. Eligibility for 13 Chapter depends on the amount of secured and unsecured debt, and that the petitioner earns sufficient income to repay debts through the plan. Our Chapter 13 bankruptcy lawyer in Clearwater, FL can help to determine if you qualify for this form of bankruptcy.
Chapter 13 can help the petitioner avoid foreclosure on their primary residence by continuing to make mortgage payments and entering into a repayment plan for the amount that is past due on their mortgage, provided the petitioner meets eligibility requirements. Completing an approved course in financial management is a requirement for debtors to qualify for a discharge under the Chapter 13 plan. To complete the Chapter 13 plan, debtors must make plan payments through a Chapter 13 trustee.
Filing for bankruptcy can be a complicated process. If you live in Florida and are considering filing for bankruptcy, a Clearwater, FL Chapter 13 bankruptcy lawyer can help answer your questions about this intimidating process, and guide you through it with ease.
Contact Ziegler Diamond Law today for a more thorough discussion about the bankruptcy process, and which options would be best for you. Call our office to set up a free and confidential case evaluation with our trusted Clearwater, FL chapter 13 bankruptcy lawyer today.
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