CHAPTER 13 BANKRUPTCY
RECONSTRUCT YOUR DEBT
In today’s chaotic world it’s easy for a normally prudent person to experience financial hardship. Perhaps you lost your job or had to help a family member through a crisis or had a medical emergency of your own. Any number of unexpected events can wreak havoc on your finances and cause you to be delinquent on your mortgage and other debts.
The good news is that the bankruptcy system was enacted for you to enjoy a new opportunity in life with a clean slate for your future efforts. A Chapter 13 bankruptcy is a means for you to reorganize your debt so that you can become current on your mortgage, get rid of debt and get a “fresh start.”
What is a Chapter 13 Bankruptcy?
A Chapter 13 Bankruptcy is basically a payment plan, usually over a 3 to 5-year period that allows you to keep all of your property and pay off the delinquent portion of your mortgage or other debt. For example, if you get behind on your mortgage and owe the bank six thousand dollars for past-due payments, you could theoretically make equal monthly payments of $100 to pay off the delinquent amount within 5 years. This means you would only make an extra $100 payment each month toward your delinquent amount while also paying your current monthly mortgage payment.
The payments are made to the Chapter 13 Trustee who will in turn pay your mortgage company. The Bankruptcy Court will protect you from mortgage foreclosure during this time and allow you the opportunity to save your home.
A Chapter 13 bankruptcy is also available to you if you are not eligible for a Chapter 7 because your income exceeds the Chapter 7 income threshold. You can also utilize a Chapter 13 payment plan for certain non-dischargeable debts such as IRS debt or child support payments. Once again, depending on your income, you could be afforded 3 to 5 years to pay off the debts.
Who Qualifies for a Chapter 13 Bankruptcy?
You must have a regular source of income to qualify for a Chapter 13 Bankruptcy. Your income can be from employment, social security, pension or other consistent source. Your income must be sufficient to fund the monthly payments in the Chapter 13 plan. The Bankruptcy Court also requires you to take a credit counseling course within 180 days before filing.
There are other requirements that we will discuss with you prior to filing to ensure that you are a good candidate for a Chapter 13 bankruptcy.
Some Other Benefits of a Chapter 13 Bankruptcy
- Once the plan is completed, your remaining unsecured debts are also discharge;
- You may also be able to get rid of a second mortgage or other liens;
- You can also lower your car payments and interest rate if you have owned the vehicle for at least a year.
Contact Us Now to File Chapter 13 Bankruptcy
- We are excited to offer you a FREE confidential consultation to discuss your suitability for a Chapter 13 bankruptcy. Please call our office at (786) 668-6688 to get the process started to help you get a FRESH FINANCIAL START.
