You can file for bankruptcy through Chapter 13 if you cannot repay your debts. In this case, you will be given a repayment plan. You will have to make payments to the court-appointed trustee. The trustee will then distribute the money to your creditors. In most cases, this plan will last for up to five years.
Tampa Injury & Bankruptcy Law Firm. Book top rated lawyers in Tampa
Chapter 13 Bankruptcy Attorney
What You Need to Know About Chapter 13 Bankruptcy
Free In-Depth
No Obligation Initial Meeting
FREY LAW, P.A.
Disposable Income
Disposable income is the amount of money left over after a debtor pays all of his or her regular expenses. In Chapter 13 bankruptcy, a debtor must pay the creditors who are not considered priority creditors with the disposable income he or she has each month. This amount is calculated by subtracting all of the deductions from his or her monthly income.
The chapter 13 disposable income test is designed to make sure that every cent of the debtor’s disposable income is put towards paying off their debts. This ensures that the debtor made every effort to pay off all of his or her creditors during the repayment period. The test is based on the amount of disposable income left over after all of the debtor’s living expenses are deducted, including mandatory payments and childcare costs. It also considers priority debts such as medical bills and secured debts.
FREY LAW, P.A.
Automatic Stay
The automatic stay in Chapter 13 bankruptcy is a legal protection from creditors. It prevents a creditor from foreclosing on a debtor’s property until the bankruptcy is final. However, it does not cover every financial and legal issue. Consequently, it is important to understand the automatic stay’s limits before filing for bankruptcy.
Generally, the automatic stay will only last for 30 days. However, if you have filed another case within a year of filing for bankruptcy, you may not be entitled to the automatic stay. In such cases, you will need to file a motion to lift the stay.
FREY LAW, P.A.
Repayment Plan
If you’re considering filing for Chapter 13 bankruptcy, you need to create a repayment plan to pay back your creditors. Your plan will pay your secured creditors at least the value of the collateral, but will also include some payments towards unsecured debts. Secured debts generally involve assets, such as car loans or mortgages. It’s important to pay these debts in full.
The length of your repayment plan depends on your income. If you make less than the median income, your repayment plan can last up to five years. Otherwise, it can last as little as three months.
For legal services you can trust, please call us or visit us in our Tampa Office
FREY LAW, P.A.
Limits for Filing
The Bankruptcy Code specifies the amount of debt a debtor can liquidate during a Chapter 13 bankruptcy case. The limit is $465,275 for unsecured debt. This amount may not be exceeded if both spouses are joint debtors. The bankruptcy court may impose a more strict limit if the debtor exceeds the amount of debt allowed in his or her bankruptcy case.
In some circumstances, it may be possible to pay off secured debt in full through a Chapter 13 bankruptcy plan. However, in most cases, this option involves settling a small percentage of unsecured debt. The debtor must follow a plan that includes a reasonable payment schedule to keep the creditors happy.
FREY LAW, P.A.
Costs
There are many costs associated with filing for Chapter 13 bankruptcy. Filing fees are determined by the district in which the bankruptcy was filed. However, there are some basic fees that are the same regardless of bankruptcy type. These fees include attorney fees, filing fees, credit report fees, and credit counseling fees. Depending on the complexity of your bankruptcy case, you may also have to pay additional fees.
The bankruptcy court appoints a trustee who makes payments to your creditors. This trustee also receives money from your bankruptcy plan. You must file your most recent federal tax return as part of the bankruptcy process. Additionally, you must file all required state and federal tax returns, and you must surrender any federal and state refunds.
For legal services you can trust, please call us or visit us in our Tampa Office
FREY LAW, P.A.
Retaining an Experienced Bankruptcy Attorney
Hiring a Chapter 13 bankruptcy attorney can make a big difference in the outcome of your case. Your bankruptcy attorney will take care of the administrative aspects of the bankruptcy and can guide you through the complicated rules. Your attorney can also help you establish a payment plan that will satisfy creditors and the court. A bankruptcy attorney can also help you respond to creditors’ motions and make sure that your rights are protected.
Contact Attorney Christopher G. Frey, Esq
A Chapter 13 bankruptcy attorney can help you restructure your mortgage and get you back on track financially. This can help you keep your home and keep your car. Your attorney will consider the types of debt you owe, your income level, and the reason you fell behind on your payments. This way, you’ll be able to create a payment plan that will help you keep your home while getting more disposable income.
Free In-Depth
No Obligation Initial Meeting
Has represented clients in over 275 jury trials to verdict
Why Client Choose Us
2536
Successful Cases
6523
Trusted Clients
6352
Case Studies
6852
