In Chapter 13 bankruptcy, you pay back a portion of your debts over a three to five-year period. That time period enables debtors time to catch up on mortgage arrears completely halting any foreclosure proceedings. Chapter 13 also enables you to reduce the principal balance and interest on secured debts effectively lowering the monthly payments. You may surrender property secured by a loan that you no longer wish to keep. These are just some of the benefits of filing a Chapter 13 bankruptcy.
You may end up paying back a very small amount of unsecured debt through Chapter 13 bankruptcy. This is determined by a calculation of your current monthly income minus deductions for a mortgage (rent), utilities, food, gas, medical expenses, vehicle insurance, etc. Whatever amount is remaining each month, if anything, would be paid to the unsecured creditors. Any debts that are not paid in full at the completion of the Chapter 13 plan, will be discharged. As your Tallahassee bankruptcy attorney, I can walk you through these steps.
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Frequently Asked Questions
Am I Eligible to File Chapter 13?
If you have regular income sufficient to fund your repayment plan, your secured debts do not exceed $ 1,395,875, and your unsecured debts do not exceed $ 465,275, then you may file Chapter 13 bankruptcy.
How Much Does Chapter 13 Bankruptcy Cost?
To get started – To file a Chapter 13, you must take a credit counseling course (online) The course can be taken for as low as $10.00. The court filing fee is $313.00. You must take a financial management course (online) after filing the bankruptcy. This course can be taken for as low as $10.00. You also must pay attorney fees. Our firm requires a small down payment with the remainder fee financed through the repayment plan.
Plan Payments – When filing a Chapter 13, you are proposing to the court a repayment plan to get you caught up on mortgages, vehicle payments, and other non-dischargeable debts, thus the monthly plan payments vary with each case. Contact us for a free consultation.
How Long Will Bankruptcy Last?
If your income is lower than the median household income as compared to your state of residence, you may propose a three to five-year repayment plan. If your income is over the median household income, you must propose a five-year repayment plan.
If you are a Florida resident, we can help. Call to schedule your free consultation