Top Reasons to Consider Chapter 13 Bankruptcy
Struggling with debt can impact nearly every aspect of your life, and finding a way to manage or relieve debt is more important to your well-being than you might think. For many debtors in the St. Petersburg area, filing for bankruptcy has numerous benefits. While there are different types of bankruptcy that individual debtors can be eligible to file for, many Southwest Florida debtors will ultimately file for Chapter 13 bankruptcy for many different reasons.
What are some of the top reasons you should consider a Chapter 13 bankruptcy filing? Our experienced Florida bankruptcy attorneys can provide you with the information you need.
No Liquidation of Assets
Chapter 13 bankruptcy is not a type of liquidation bankruptcy. As such, you will not need to turn over any of your property to the trustee for liquidation. In short, you can keep all of your assets, regardless of bankruptcy exemptions.
Catch Up on Debts You Owe to Creditors
Chapter 13 gives debtors a chance to catch up on debts they owe to creditors. As a type of reorganization bankruptcy, the process involves drafting a repayment plan over a period of three to five years, during which time you will make regular payments. Priority creditors and secured creditors will need to be repaid in full, which means you will fully catch up on those debts and be able to keep secured assets. Unsecured nonpriority debts can be discharged at the end of your case.
Stop the Foreclosure of Your Home
One of the primary benefits of Chapter 13 bankruptcy is distinct to reorganization bankruptcy — you can stop the foreclosure of your home, catch up on debt you owe your mortgage servicer, and stay in your home.
You Do Not Qualify for Chapter 7
Finally, many debtors want to file for bankruptcy to get out of debt and receive a discharge relatively quickly. In order to do that, an individual debtor will usually need to file for Chapter 7 bankruptcy. Yet in order to be eligible to file for Chapter 7 bankruptcy, you will need to pass the means test by showing that your income is low enough that allowing you to file for a liquidation bankruptcy would not be an abuse of the system. If you do not qualify for Chapter 7 bankruptcy, you will often qualify for Chapter 13 bankruptcy instead. Although the case will take more time, you can still be eligible to have debts discharged at the end, in addition to the benefits discussed above.
Contact Our St. Petersburg Bankruptcy Lawyers Today for Assistance
Are you currently considering personal bankruptcy but unsure about eligibility requirements and what type of bankruptcy is best suited to your financial needs more generally? One of the experienced St. Petersburg bankruptcy attorneys at the Law Offices of Stephen Barszcz can discuss all of your bankruptcy concerns with you today. We can answer any questions you have about different types of bankruptcy for consumers, and once you are ready to file, we will assist you through all stages of the bankruptcy process. Contact our firm to learn more about the bankruptcy services we provide in Southwest Florida.
Source:
law.cornell.edu/uscode/text/11
