Parkland Chapter 13 Bankruptcy Attorney
Debt can affect anyone. Even those with health insurance and good paying jobs may not have the safety net that they believe. Job loss, a cancer or other serious illness diagnosis, or another financial emergency can strike in an instant, rendering individuals prone to mounting debt that is impossible to get out from under. Chapter 7 bankruptcy is an option for many people, but if your income is over the Florida median income for your family size, you will be ineligible for Chapter 7. Thankfully, Chapter 13 bankruptcy is a viable option for those who do not qualify for Chapter 7, or whose debts are secured and therefore cannot be discharged by liquidation bankruptcy. For those who have steady jobs and the means to stick with a monthly payment plan, Chapter 13 bankruptcy may be the right choice. Chapter 13 bankruptcy allows you to stay in your home, continue owning your home, and keep your other assets and belongings as well while you pay off your debts with a reasonable payment plan. Reach out to an experienced Parkland Chapter 13 Bankruptcy attorney for assistance today.
The Basics of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is also called a debt adjustment or wage earner’s plan, due to the fact that it requires debtors to pay back all of their debt as opposed to wiping out that debt through asset liquidation. When you file for Chapter 13 bankruptcy, all of your debt is consolidated into one place. Some of it may be lowered or discharged, but you still have the responsibility of paying it off over three to five years. A three to five year payment plan will be created, and you will be expected to stay on top of these mandatory monthly payments until your debt is fully paid off. Only individuals with a steady job tend to qualify for Chapter 13 bankruptcy, as your creditors must approve the payment plan. During this period of time, creditors and debt collectors are prohibited from harassing you or attempting to acquire additional collections.
Eligibility of Chapter 13 Bankruptcy
An individual is only eligible for Chapter 13 bankruptcy is their unsecured debts are less than $394,725, while their secured debts are under $1,184,200, according to the U.S. Courts. Secured debt includes home loans and car loans, while unsecured debt includes credit card debt, utility bills, medical bills, student loans, and most other forms of debt. An additional eligibility criteria for Chapter 13 bankruptcy is that debtors must attend credit counseling from an approved credit counselor within 180 days of filing for Chapter 13 bankruptcy.
Chapter 13 Bankruptcy to Save Your Home
A home is by far the most valuable asset that the average person will ever own. Foreclosing on a home has long lasting impacts, and can harm your financial future for decades. Not only that, but your home most likely has invaluable sentimental value. The automatic stay provision of Chapter 13 bankruptcy puts an immediate hold on foreclosure proceedings, allowing you to stay in your home, build equity, and pay back your missed mortgage payments in an organized, timely manner.
Call a Parkland Chapter 13 Bankruptcy Lawyer Today
To learn more about Chapter 13 bankruptcy, contact the Parkland Chapter 13 bankruptcy attorneys with the Law Offices of Barry S. Mittelberg. Call our experienced attorneys at 954-752-1213 for a free consultation.