Curious if you fit in a Chapter 7 or instead a 13 or an 11?

If you have little in assets that are owned free and clear, are not behind on payments for things you want to keep and fall below this chart, (click on Median Family Income Based on State/Territory) you may fit in a Chapter 7.

If you want time to catch up on a house, wish to get rid of a 2nd mortgage, or have assets owned free and clear you are trying to protect from creditors, you may be looking at a Chapter 13.

If you seem to fit in a Chapter 13, but owe more than $1 million total or $750,000.00 for items you are buying, you may be in a Chapter 11 posture.

Will bankruptcy hurt my credit rating?
While Bankruptcy will adversely affect your credit rating, it often represents the first step towards reestablishing your credit. Any information on your credit report concerning unpaid bills will stay on your report until paid in full or until reported as bad debt. Once such items are reported as bad debt they will still remain on your credit history for 7 years. Federal law limits the length of time that a bankruptcy can be reflected on your credit report to 10 years. Thus, bankruptcy draws a proverbial line in the sand and prevents negative information from being carried on your credit report indefinitely.

Will I be able to get another car or house if I declare bankruptcy?
First, it is important to note that many people are able to keep their house and their car(s) while still obtaining the benefits of bankruptcy. However, many people worry that if they file bankruptcy that they will never be able to buy another house or finance another car. However, the truth is that many finance companies see an individual as a better credit risk afterward rather than before when that person had so much outstanding debt. That being said, you still will be regarded as a credit risk and your interest rates will be higher.

Chapter 13 Bankruptcy Information

A Chapter 13 bankruptcy, unlike a Chapter 7 bankruptcy, does not provide a release of debt, but rather a restructuring of the debt in a manner which is considered manageable to repay the dept.

Many times the debt to be paid back may be less that currently owed through negotiation. In a Chapter 13 bankruptcy, a debtor proposes a repayment plan to the creditors, over a 3 to 5 year period, in a good faith proposal to pay off all or part of the debts from the debtor's future income.

A Chapter 13 bankruptcy can:

• Prevent the foreclosure of a home;

• Make up delinquent car or mortgage payments

• Pay back taxes;

• Stop interest from accruing on your tax debt (local, Florida state, or federal);

• Keep valuable property which is non-exempt in a bankruptcy;

• And manage other financial situations which may be affected by a Chapter 13 bankruptcy proceeding.

The Budgen Law Group has successfully assisted many Florida residents in Chapter 13 bankruptcy proceedings throughout the years. With offices in Orlando, Tampa, and Lake Worth, Florida, we have the resources to provide our professional Chapter 13 bankruptcy attorney (lawyer) legal services in Central Florida, East Florida, and West Florida.

Creditors often will work with debtors in a Chapter 13 bankruptcy, as Chapter 13 provides the opportunity to recover funds from you, as apposed to a Chapter 7 bankruptcy where the ability to recover the debt may be eliminated.

Those who are more likely to file for a Chapter 13 bankruptcy are individuals who seek to hold on to possessions such as a home, multiple vehicles, or other property or assets.

There are many issues which you will have to discuss with your Chapter 13 bankruptcy lawyer (attorney) in order to ensure a smooth Chapter 13 bankruptcy process.

Knowing your rights and legal options in Chapter 13 bankruptcy matters is essential in resolving and achieving your desired goals.

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Common Chapter 13 Bankruptcy Questions:

If I file a Chapter 13, will I be able to stop foreclosures or automobile repossessions?
When a person gets behind on a house payment or a car payment their creditor may decide to either foreclosure or repossess their property. However, the filing of bankruptcy requires creditors to cease these efforts. Creditors must then petition the court for permission to continue their collection efforts. Usually, an individual can keep their house or car if they can propose a workable plan where payments on the loan will continue and arrearages will be paid off over a reasonable period of time. Thus, a chapter 13 plan can provide an individual the chance to keep their property by forcing their creditors to accept payment of their past due payments over a reasonable period of time.

If I file a Chapter 13, will I be able to keep my assets?
In a chapter 13 there are two kinds of assets: assets that the individual owns free and clear and assets that secured creditors have security interests in. A person that successfully completes a chapter 13 will not have to give up any property that is unencumbered. An individual also will likely be able to keep encumbered property, such as a house or car, if they can propose and implement a chapter 13 plan that will provide for the payment of the amount the individual is in default.

Do I have to repay all my debts in full?
For most types of unsecured debt the answer is no. What is required is that the individual pay to these companies an amount that the individual can reasonably afford. However, secured creditors and a few types of unsecured creditors must be paid in full. Upon the successful completion of a chapter 13 plan, an individual will not be liable for debts that are dischargeable.

How long does a Chapter 13 take?
It can take several months to get a Chapter 13 plan proposed and approved by the court. The plan itself will last between 36 and 60 months. The debtor’s only obligation during this time is to make the monthly payment required by the plan. Upon the completion of this plan the individual is granted a discharge.

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