Coconut Creek Chapter 13 Bankruptcy Attorney
If you’ve looked into bankruptcy options and learned that you have too much income to qualify for a Chapter 7 filing, there may still be an option. If you have too much income or are concerned about losing your home or other valuable assets, you could still benefit from a Chapter 13 bankruptcy filing. This will allow you to get your debts reduced and get yourself back on track and be debt-free in just a couple of years.
To discuss whether Chapter 13 is right for you, it’s important to speak with a Coconut Creek Chapter 13 bankruptcy attorney as soon as possible. At the Law Offices of Barry S. Mittelberg, P.A., our bankruptcy attorneys are on hand to answer all your questions and help choose the option that is best for your particular situation.
How the Chapter 13 Bankruptcy Procedure Works
Chapter 13 bankruptcy is also known as a wage earner’s plan or debt adjustment. It will bring your creditors and debts together and then allows you to lower some and even discharge others. The debts that remain will be added to a payment plan that allows you to make one single payment each month. The payment is made to the bankruptcy trustee, who will then distribute the funds to the creditors.
For a Chapter 13 filing to work, your creditors have to agree to the plan and payment amounts and then leave you alone during the defined period for the bankruptcy. Once the period ends, which is usually either three or five years, the remaining debts will be discharged. To determine what your bankruptcy period will be, there is a test that analyzes your income, debts, and assets to calculate the right period.
Why Chapter 13 Bankruptcy is Important
One of the main reasons people like Chapter 13 bankruptcy is because it allows you to save your home from foreclosure and it will come off your report years before a Chapter 7 filing. This is extremely important for trying to establish better credit sooner. Chapter 13 puts a hold on any foreclosure proceedings through an automatic stay provision in the bankruptcy law.
The plan you decide on can be used to help you catch up on mortgage payments, getting you current again. Other benefits to a Chapter 13 bankruptcy is to reduce your mortgage balance to an amount that is more comparable to your home’s value, or it can do away with a lien for a second mortgage when you owe more on the main mortgage than the value of your home.
Contact a Coconut Creek Chapter 13 Bankruptcy Attorney Today
To find out whether Chapter 13 bankruptcy is right for you, contact the Law Offices of Barry S. Mittelberg, P.A. today to schedule an initial consultation.