Filing Chapter 13 Bankruptcy
Individuals who are overwhelmed with debt, facing foreclosure, or wishing to consolidate their bills may want to consider filing Chapter 13 bankruptcy. Filing bankruptcy can be frightening, but your financial circumstances may make it a viable option for you. If you are currently facing financial difficulty because of excessive debt, or are in danger of losing your home to foreclosure, you should speak with a Florida Chapter 13 bankruptcy lawyer about your options.
Filing Chapter 13 bankruptcy may be a very good option for individuals who have steady incomes and non exempt property or assets that they do not want to lose. Chapter 13 bankruptcy does not involve the liquidation of assets, but instead restructures or reorganizes the debt so that it can be paid off in monthly installments. A person will usually have between 3 and 5 years to pay off debt when they file Chapter 13 bankruptcy. The amount paid is based on available disposable income and value of non exempt assets.
Many Florida residents who are facing foreclosure choose to file Chapter 13 bankruptcy. When an individual files a petition for Chapter 13 bankruptcy, an automatic stay will be placed upon foreclosure proceedings, preventing the home from being foreclosed upon. The delinquent or missing mortgage payments can be paid off over time after Chapter 13 bankruptcy is declared, making it possible to keep your home.
After a Chapter 13 bankruptcy petition has been approved by the court, you will begin making monthly payments to pay off all or part of the debt that you owe. Payments are usually made anywhere between three and five years, and the exact monthly payment amount will depend upon your disposable income. By filing Chapter 13 bankruptcy, you can begin to pay off your debt in a controlled environment.