Top Reasons to Consider Chapter 13 Bankruptcy
If you are struggling to make monthly payments on the various debts you owe, you might be thinking about the possibility of bankruptcy. In general, individuals in Florida who are considering bankruptcy will typically plan for either a Chapter 7 liquidation bankruptcy or a Chapter 13 reorganization bankruptcy. When a debtor is ineligible for Chapter 7 bankruptcy or wants to take advantage of the benefits of a reorganization bankruptcy, they will typically file for Chapter 13 bankruptcy. What are the top reasons to consider Chapter 13 bankruptcy? Our St. Petersburg bankruptcy lawyers can tell you more.
- Get Caught Up on Payments with Your Creditors
In a Chapter 13 bankruptcy case, rather than having nonexempt assets liquidated to pay creditors and discharge your debts, you will propose a reorganization plan that involves getting caught up on payments with many of your creditors. After getting caught up with certain lenders, you can then maintain an ongoing relationship with that lender and can be eligible for additional loans in the future.
- Affordable Payment
As part of the Chapter 13 reorganization plan, you will make a regular — usually monthly — payment of the same amount to the trustee. The payment amount takes into account your disposable income and your exempt property, so it will be affordable for you.
- Avoid Foreclosure and Keep Your Home
One of the major benefits of a Chapter 13 bankruptcy is that it stops foreclosure proceedings, and since it allows you to catch up with secured creditors such as your mortgage servicer, you can get caught up on your mortgage payment and keep your home.
- Prevent Repossession of Your Car and Keep Your Vehicle
Just as you can get caught up with your mortgage servicer and avoid foreclosure, Chapter 13 bankruptcy also allows debtors to get caught up with auto lenders, avoid vehicle repossession, and keep their cars.
- Have Some Debts Discharged without Having Any Property Liquidated
At the conclusion of a Chapter 13 bankruptcy case, you may be eligible to have certain nonpriority unsecured debt (such as credit card debt or medical debt) discharged without having to have any of your nonexempt assets liquidated. No property, nonexempt or otherwise, is liquidated in a Chapter 13 case.
Contact a St. Petersburg Bankruptcy Lawyer Today for Assistance
Anyone in the St. Petersburg or the Tampa Bay area who is struggling with debt should seek advice from a lawyer who can help. For many debtors with a regular income, Chapter 13 bankruptcy can have numerous benefits, and it may be a way of catching up on debts with creditors and keeping all of the secured property that has become integral to your life. One of the experienced St. Petersburg bankruptcy attorneys at the Law Offices of Stephen Barszcz can speak with you today about Chapter 13 bankruptcy. We can answer any questions you have and can begin working with you to plan for your own Chapter 13 filing. Contact us to learn more about the bankruptcy services we provide to individuals in Southwest Florida.
Source:
govinfo.gov/content/pkg/USCODE-2011-title11/html/USCODE-2011-title11.htm
