Debt Relief Through Debt Repayment: Chapter 13 Bankruptcy
Debtors who can pay some of their debts may not qualify to discharge debts outright through Chapter 7 bankruptcy. Instead, Chapter 13 bankruptcy is designed for individuals with regular incomes to repay a portion of their debts over several years.
Some people must file under Chapter 13 bankruptcy. For other debtors Chapter 13 is a strategic option to accomplish certain goals. Either way, our experienced bankruptcy lawyers work to maximize your debt relief and ensure that your repayment plan is realistic.
Our Tampa law firm represents individuals and couples in Hillsborough, Pasco and Pinellas counties and statewide in Florida who need bankruptcy protection to get their finances and their lives back on track. Contact us today for a free initial consultation.
Should I File for Chapter 13 Bankruptcy?
Chapter 13 is also called reorganization or a wage earners plan. Unlike Chapter 7, which erases certain debts, Chapter 13 requires debtors to pay some of what they owe. You pay a fixed monthly amount to a trustee who distributes that money among your creditors. Payments continue for 36 or 60 months, depending on your finances. The amount is based on your disposable income after your expenses. In many cases, clients pay only a fraction of their total debt. At the end of your plan, any debt balances are discharged.
The majority of our clients are eligible for Chapter 7 bankruptcy. However, you may be a candidate for Chapter 13 if:
- You have substantial mortgage arrears, which can be rolled into your payment plan
- You have nonexempt assets or home equity not covered by the Florida bankruptcy exemptions
- Your income is too high under the Chapter 7 means test
There are many benefits to bankruptcy. Chapter 13 stops foreclosure and also stops creditor harassment. It also halts or prevents collection actions such as wage garnishment or repossession. If you owe more than your house is worth, Chapter 13 may allow you to strip a second or third mortgage. If you owe more than your car is worth, bankruptcy can reduce your car loan through the "cramdown" provision.
Tampa Chapter 13 Attorneys
We represent only debtors in bankruptcy, not banks and creditors. We explore your alternatives, including direct debt settlement or tax settlement to determine the best course of action for your financial picture. Our lawyers have filed thousands of bankruptcy cases, including Chapter 13 plans. We take great pains to make sure that you will have enough money to stay on track with payments and work your way to debt freedom and financial stability.
President Obama and the U.S. Congress has designated our offices a Federal Debt Relief Agency because we help people file for bankruptcy. See our frequently asked questions and bankruptcy timeline pages for more background about the pros, cons and applications of bankruptcy. To discuss your specific circumstances and all the ways Stamatakis + Thalji + Bonanno can help, call us at 866-479-6946 or contact us online.
