CHAPTER 13 BANKRUPTCY
CHAPTER 13 BANKRUPTCY JACKSONVILLE AND ORLANDO AREARESTRUCTURING DEBT TO FIND RELIEF
Millions of Americans consider bankruptcy every year, but the recovery from the financial crisis of 2020 has hit many especially hard. As such, Chapter 7 and Chapter 13 bankruptcies are occurring at higher rates than in many previous years – and people are looking for help in deciding what steps to take next. If you are considering a Chapter 13 bankruptcy in Jacksonville or Orlando, let our knowledgeable staff guide you through the process and help you make the right decision.
Do you know the differences between Chapter 7 and Chapter 13 bankruptcy? If not, you are not alone. Many people confuse the various bankruptcy chapters and the details of their processes and outcomes. However, knowing which chapter is best for your unique situation is important since it will guide you in making the decisions necessary to improve your financial future. Thankfully, you do not have to go into it alone. Speaking to an experienced bankruptcy attorney can give you a professional and unbiased perspective.
Typically, those who have the means to repay at least part of their debts – after subtracting their everyday reasonable expenses, such as bills and other recurring costs – are good candidates for Chapter 13 bankruptcy. In this chapter, your debt is restructured, potentially eliminating most of the debt while repaying pennies on the dollar providing you with the ability to better manage your debt load. This helps many people chip away at otherwise unmanageable debt over time and gives them a sense of relief, knowing that they typically will keep all of their property or assets in the process.
Chapter 13 bankruptcy is also a valuable resource for giving you some room and time to bring current delinquent mortgage, auto loan, or other secured debts or tax debts. In the majority of cases, bankruptcy automatically stays all other proceedings and actions against you. Creditors are generally no longer allowed to contact you or move forward with any type of collection activity against you once you have filed for bankruptcy.
FREQUENTLY ASKED QUESTIONS
WHAT IS THE DIFFERENCE BETWEEN CHAPTER 13 AND CHAPTER 7?
Where Chapter 7 bankruptcy focuses on debt relief by way of discharge, Chapter 13 bankruptcy primarily focuses on relieving debt by helping those who are struggling with a more manageable repayment option, most often paying only a small portion of their debt. One of the big reasons many people choose Chapter 13 is because of the increased control it provides debtors while removing the burden of creditor calls, harassment by creditors and lawsuits.
WHY SHOULD I OPT FOR CHAPTER 13 BANKRUPTCY?
If you have a regular income that will allow you to manage repayment of all or some of your debts if they are sensibly restructured, you are a good candidate for Chapter 13 bankruptcy. It helps you take better control of repaying those debts. It is also more flexible and may allow for negotiation in payment.
WHAT ARE THE RULES FOR CHAPTER 13 BANKRUPTCY?
In general, a Chapter 13 bankruptcy is geared toward restructuring and manageable repayment of all or some of your debt. It also takes place over a more extended period of time, and eligibility depends on your income. See a Chapter 13 bankruptcy attorney for more information.