Tamarac Chapter 13 Bankruptcy Attorney
While most people have some form of debt, for many, debt can become overwhelming to the point where assets are seized, foreclosure is pursued by a lender, and harassment from creditors becomes an everyday event. For these individuals, filing for a Chapter 13 bankruptcy may provide much-needed financial relief and hope for the future. At The Law Offices of Barry S. Mittelberg, P.A., our Tamarac Chapter 13 bankruptcy attorney can provide you with guidance and support as you navigate the process. To learn more about what we can do for you, please call us directly today.
What Is a Chapter 13 Bankruptcy?
There are two primary types of bankruptcy options for individuals: Chapter 13 and Chapter 7. Chapter 7 bankruptcy is only for those who meet a means test and do not have the income and assets to repay creditors. Chapter 13 bankruptcy, on the other hand, also known as a wage earner’s plan, provides a debt relief option that’s focused on debt repayment.
When a person files for Chapter 13 bankruptcy, they will work with creditors to develop a repayment plan that allows them to repay all or part of their debt over the course of three to five years.
Advantages of Chapter 13 Bankruptcy
There are many advantages to a Chapter 13 bankruptcy when compared to a Chapter 7 bankruptcy. While debts will be repaid rather than discharged in a Chapter 13 filing, this is beneficial for the debtor. Potential benefits of filing for a Chapter 13 bankruptcy include:
- Saving one’s home from foreclosure;
- Retaining certain assets that otherwise would need to be liquidated in a Chapter 7 filing;
- Rescheduling secured debts; and
- Triggering the automatic stay, which immediately stops any collection actions against a debtor.
What Else Do I Need to Know About Filing a Chapter 13 Bankruptcy?
In order to be eligible for a Chapter 13 bankruptcy, an individual must have no more than $394,725 in unsecured debts and $1,184,200 in secured debts. Further, credit counseling from an approved agency is required before an individual can file for Chapter 13 bankruptcy.
It’s important to know that while there are many advantages to filing a Chapter 13 bankruptcy, bankruptcy has its disadvantages, too. One of these disadvantages is that a Chapter 13 bankruptcy filing will stay on one’s credit score for seven years (a Chapter 7 bankruptcy filing remains on a credit score for 10 years).
Finally, note that it is very important to work with an attorney if thinking about filing for bankruptcy. An attorney can help you to understand alternatives to bankruptcy, how a bankruptcy will affect you, and what type of bankruptcy you qualify for and how to proceed.
Call Our Tamarac Chapter 13 Bankruptcy Attorney Today
If you have fallen behind on payments and are facing thousands of dollars in debt that you don’t know how you’ll ever be able to repay, it may be time to think about filing for bankruptcy. At The Law Offices of Barry S. Mittelberg, P.A., our experienced Tamarac Chapter 13 bankruptcy lawyer is here to assist you. Please call or email us today to learn how we can help.