Chapter 13 Bankruptcy in South Florida

If you’re overwhelmed with debt, filing for Chapter 13 bankruptcy might be a good option. Unlike Chapter 7, you can keep all of your assets after filing. Then you’ll make affordable payments to get caught back up and out from under debt. If you’re interested in filing, contact a South Florida Chapter 13 bankruptcy lawyer to start the process.

Benefits of Chapter 13 Bankruptcy

Your South Florida Chapter 13 bankruptcy lawyer will provide an in-depth explanation of the numerous benefits. These include:

Keeping your assets
Stopping foreclosure proceedings
Affordable monthly payments
Stopping collection activity
A mortgage modification
How Chapter 13 Works
Your South Florida Chapter 13 bankruptcy lawyer will begin the process by filing a petition for bankruptcy. The petition will include a list of creditors, the amount owed, your property, and your income. You’ll also need to provide your monthly living expenses and tax information. After you file, you’ll need to create a repayment plan. This plan will include how much you can pay and what debts you’d like to be discharged. Then, you’ll attend a hearing, where a judge will decide if your plan is acceptable.

If approved, you will make a single monthly payment to your bankruptcy trustee. Then, the trustee will distribute the money to the creditors in order of priority. The creditors cannot contact you during this time. Instead, they will only have contact with the trustee. You must make all required payments to the trustee, or the judge can dismiss your case. The plan normally lasts for three to five years, and in the end, the remaining unsecured debt is discharged.

Unsecured Debts And Chapter 13 Bankruptcy

The bankruptcy court prioritizes debts in Chapter 13 bankruptcy. The first obligation is to pay secured debts. Then, unsecured claims are divided into two categories. First, you must pay priority unsecured claims. Past due child support, tax debts, and domestic support obligations fall into this category and must be paid in full.

Non-priority unsecured claims include credit card debts, medical bills, personal loans, and more. These debts receive a percentage of the money left over after the other debts are paid. While some people end up paying all of the non-priority unsecured debts, many only pay a portion, and then the remaining amount is discharged at the end of the payment plan.

Eligibility For Chapter 13 Bankruptcy

Unlike Chapter 7, Chapter 13 bankruptcy doesn’t have income requirements. You can file for Chapter 13 if you’re a high earner, as long as you cannot pay your debts. However, there is a debt limit for Chapter 13. First, you must have less than $394,725 in unsecured debts. Second, you must owe less than $1,184,200 in secured debts. The federal government adjusts the debt threshold periodically to keep up with the consumer price index. You can find out if you’re eligible by consulting with a South Florida Chapter 13 bankruptcy lawyer.

Catching Up On Past-due Mortgage Payments

Chapter 13 bankruptcy gives you the option to keep your home if you’re behind on your mortgage. You will include the past-due amount in your repayment plan to get caught up. The lender won’t be able to foreclose on your home as long as you keep up with the monthly payments. However, if you miss payments, the lender can petition the court for the right to foreclose on your home. That’s why it’s so important to set up a payment plan you can afford. Your South Florida Chapter 13 bankruptcy lawyer will help you create a plan that will allow you to catch up with past-due payments.

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