Life is terrible when debt collectors are constantly calling. You may be spending all your time worrying about whether or not you are going to lose your house or your car. All this uncertainty can be really scary. We can help. A Clearwater Chapter 13 bankruptcy lawyer will help you get a fresh start. Our seasoned bankruptcy attorneys are just a phone call away.
Chapter 13 Basics
You can think of Chapter 13 as a wage earner’s plan. If you have a steady income, but you’re having a hard time keeping up with your debt, you can use Chapter 13.
With this type of bankruptcy, you can make a plan to repay your debt over the next three to five years. It won’t necessarily be in the full amount that you are in debt. The timeline is determined by your income.
If you make less than a certain amount per month, you will have to plan to repay the debts within three years. The court can potentially approve a longer timeline if needed. If you make more than a certain amount per month, you are going to have to plan for a five-year timeline.
There won’t be a timeline longer than five years. You can discuss this further with our seasoned Clearwater Chapter 13 bankruptcy attorneys.
The Benefits of Chapter 13 Bankruptcy
If you have to make a decision between filing for Chapter 7 and Chapter 13, you should know that there are certain advantages to Chapter 13. You likely don’t have to liquidate your assets the way you might for Chapter 7 bankruptcy, for one. That means you can prevent your house from going into foreclosure. What you do need to do is keep paying your mortgage on time during the proceedings.
Another benefit of filing Chapter 13 is that you can reschedule any debt that is categorized as “secured” debt. This excludes your mortgage on your home. But you can take your secured debt and possibly lower your payments for the duration of the Chapter 13 bankruptcy. This can be like consolidating your loans.
You can make a plan to make payments to a trustee, who then makes payments to your creditors. You won’t have to deal with debt collectors anymore — a huge benefit that our knowledgeable Chapter 13 bankruptcy lawyers in Clearwater like to remind our clients of.
Am I Eligible?
Regardless of whether you are self-employed or work for an enterprise, you have the opportunity to look into Chapter 13 bankruptcy. You have to have, however, debt, both secured and unsecured, that is under a certain amount. You can discuss this during a consultation with one of our Chapter 13 bankruptcy lawyers in Clearwater, as the numbers can change from time to time.
You have to appear before the court if you want to be able to proceed with Chapter 13 bankruptcy. You also have to have been through approved credit counseling in the 180 days before you try to file for Chapter 13 bankruptcy.
The first step of Chapter 13 bankruptcy is to file a petition to the bankruptcy court. You have to present to them your assets, debts, proof of income, bank statements, and a summary of your finances. You then have to go through your credit counseling and show what debt you have been trying to repay and what that plan is that you created through counseling to repay it. You have to show what your monthly income is, including any expected changes to that income.
Basically, you’re going to need a lot of documentation, so it’s important you’re on top of collecting and providing that as needed. It’s essential that you discuss what you need to have with one of our capable Clearwater Chapter 13 bankruptcy attorneys. The fee for filing Chapter 13 includes $235 for filing and $75 for administration fees. It is possible you can pay this in installments which cannot exceed four payments.
There are a lot of complicated rules about Chapter 13 that you should fully discuss with a lawyer. A plan is going to be made for repaying your debts. Again, it may not be in the full amount. It’s truly complicated and individualized, but it can work. You need to go through court hearings to make sure that this plan is approved and has a good likelihood of working before it can move forward as a confirmed plan.
From that point on, it’s all about making this plan work. It is something you can certainly discuss during a consultation if you have questions about how this works. We are happy to help you better understand your individual case. Just give us a call.
Call a Clearwater Chapter 13 Bankruptcy Attorney Now
If you’re in trouble and want to save your future please give us a call. We can help. You deserve to be able to start fresh. Contact a Clearwater Chapter 13 Bankruptcy lawyer today to get started.