Chapter 13 Bankruptcy

Learn the Facts

Chapter 13 Bankruptcy | Our Bottom Line: Protecting Yours

Chapter 13 bankruptcy is often referred to as reorganization bankruptcy because it allows debtors to create a payment plan that reorganizes their debt. Payment plans are based on income instead of assets and are usually spread out over three to five years.

Your debts are consolidated into a single payment you make to a Chapter 13 trustee who then disburses payments to your creditors.

Filing for Chapter 13 bankruptcy may be the right option for you if you have non-exempt property you want to keep and you have a reliable income that covers your daily expenses while allowing you to make payments according to your court-approved and legally binding Chapter 13 plan.

Many individuals deal with having a substantial amount of debt accumulated and with the help of a chapter 13 bankruptcy attorney; these individuals take a step forward towards living debt free. If you have a steady income and would rather not file for chapter 7 than the best solution would be to petition and come up with a court approved repayment plan. Contact Pinkston and Pinkston to receive the personal attention you need during the time you need it the most. Filing for bankruptcy can be an intimidating process to go through, so you should hire attorneys that will walk you through each step.

Searching for a chapter 13 bankruptcy attorney to meet all your needs, then contact Pinkston and Pinkston

The first step of filing for bankruptcy is to see if you qualify for a chapter 13. Many people choose this option if they have a steady income because it doesn’t hurt your credit history as bad in the future compared to chapter 7 bankruptcies. When an individual files for chapter 7, they must liquidate all their nonexempt assets in order to repay all the creditors back. Chapter 7 bankruptcy cases stay on your record for ten years compared to chapter 13 which only stays on your record for up to seven years. There is obviously an disadvantage in both cases, where credit is less available to these individuals, or if they are available it would be on an unfavorable term. The subject of consumer credit and its credit worthiness is complex and the best chance you have in restoring your life would be to contact a chapter 13 bankruptcy attorney in Jacksonville.

An individual can declare bankruptcy once it is certain that paying off creditors has become near impossible. Hiring a chapter 13 bankruptcy attorney in Jacksonville and filing can give you a chance to financially start your life over again. After the petition for chapter 13 is filed, the court mandates that you submit a chapter 13 plan. This plan must be given within fifteen days after the petition is filed. The chapter 13 plan must be approved by the court and also must provide payments of a certain amount to the trustee on a regular basis, which tends to be biweekly or monthly. Once the trustees receive the money, they must then redistribute it amongst the creditors in accordance to what is agreed upon in the plan.

There are many advantages of filing for chapter 13 rather than chapter 7 such as being able to keep most of all your properties while being able to spread out the time when past payments are due. If you are considering filing for chapter 13, you can have from three to five years to catch up on past accounts that you owe money. The payment is determined according to the term that you and the trustees from your bankruptcy case have agreed upon and is feasible for the individual. Another advantage you have when filing for chapter 13 is that you are protected from creditors from a period up to five years in which they are forbidden to contact you. Any individual who has unsecured debts below $360,475 and secured debts under $1,081,400 are eligible to file for chapter 13, however if you are a business entity then you are unable to file for chapter 13 bankruptcy.

Chapter 13 and Auto Repossession

Reorganizing your debt under Chapter 13 enables you to refinance most existing auto loans, effectively stopping any repossession and collection efforts against you once you file. As long as you make all of your Chapter 13 payments and maintain car insurance throughout Chapter 13 your vehicle should be protected from repossession.

Chapter 13 and Home Foreclosure

Just as filing for Chapter 13 stops auto repossession, it can also protect your home from foreclosure. Your Chapter 13 debt repayment plan should enable you to catch up on your mortgage payments within 36 to 60 months AS WELL AS POTENTIALLY ELIMINATING ANY SECOND AND EVEN THIRD MORTGAGES THAT YOU MAY HAVE ON YOUR HOME. The bank or mortgage company cannot foreclose on your home as long as you make payments according to the plan.

Pinkston & Pinkston Bankruptcy Law Firm has over 20 years of experience to help you achieve a stress-life.

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