A Chapter 13 bankruptcy attorney can help you decide if Chapter 13 is right for you. We offer free consultations with our Chapter 13 bankruptcy attorneys. A Chapter 13 bankruptcy reorganizes your debt and is very different from a Chapter 7. A Chapter 13 bankruptcy usually takes 5 years to reorganize your debt, but you should be a great position once the bankruptcy is finished. You create a realistic payment plan based on your “disposable income” that you have at the end of the month, money left over after payment of qualified living expenses. It is wise to seek the advice of a Chapter 13 bankruptcy lawyer as soon as possible, because a qualified bankruptcy lawyer has detailed knowledge of the best way to protect your assets in a bankruptcy.
Filing for a Chapter 13 Bankruptcy
There is no income limitation for a Chapter 13 bankruptcy. You could theoretically earn $10million per year and still qualify for a Chapter 13 bankruptcy from an income perspective. However, if your debts are too high, you may not be able to qualify for a Chapter 13 and you may be pushed into a Chapter 11. This is not where you generally want to be. Chapter 11 bankruptcies are very expensive, time-consuming, and difficult to achieve. A Chapter 13 bankruptcy attorney can advise you of the best way to accomplish your goals in a Chapter 13 bankruptcy. To qualify for a Chapter 13, your unsecured debt (such as credit cards and medical bills) can not exceed $360,475. Your secured debts (such as mortgage payments) may not exceed $1,081,400. These numbers are subject to change from time to time, so you must contact a Florida Chapter 13 bankruptcy lawyer to determine what debt limits will apply to you.
So, if you do not qualify for a Chapter 7 bankruptcy because your income is too high and your debt limits are less than those listed in the previous paragraph, you will be filing a Chapter 13 bankruptcy. Chapter 13 bankruptcies allow for much more flexibility in what you are able to accomplish. For example, you may be able to cram down loans on some personal property, such as a motor vehicle, meaning you will be paying what the vehicle is worth instead of what you owe. We are ready to answer whatever questions you may have.
The federal government passed new bankruptcy reform legislation in October 2005. However, don’t be discouraged! Most studies indicate that the new law affects less than 15% of individuals who could have filed previously. If you are feeling overwhelmed by your debts and considering filing bankruptcy, it is highly probable that you fall into the category of the 85 percent of people who are still eligible to file.