While many people consider bankruptcy because they lack the assets needed to pay off their debts, others simply need help getting back on track. If you are struggling with debt but still maintain a steady income, you may qualify for protection under Chapter 13 of the Bankruptcy Code.
At Werner, Hoffman, Greig & Garcia, we understand how daunting this process can be on your own. Our dedicated bankruptcy attorneys are here to help you evaluate your options for getting back on firm financial ground. Reach out to a Miami Chapter 13 bankruptcy lawyer today to learn more.
Chapter 13 bankruptcy is designed for individuals with regular income who can afford to repay part or all of their debts over time. To qualify, you will have to show a reliable source of income that allows you to make monthly payments under a court-approved plan. This makes Chapter 13 especially useful for people who want to catch up on mortgage arrears or car loans without giving up that property.
There are also district-based debt limits under Chapter 13 bankruptcy in Miami, which include different thresholds for both secured and unsecured obligations. What’s more, you can only qualify if you are current on your tax filings.
Confirmation is a crucial step in the Chapter 13 process. After you submit your proposed repayment plan, the bankruptcy court reviews it to ensure it complies with legal requirements and that you have the financial ability to follow through.
Your plan must demonstrate that you’re using all of your disposable income to repay creditors over the life of the plan. Creditors can object to the plan, and if they do, a hearing will be held to resolve those objections. The trustee also has the right to object. Once the court confirms the plan, it becomes legally binding, and you must make monthly payments to the trustee, who distributes them to creditors.
You can benefit from the automatic bankruptcy stay when you file for Chapter 13. As soon as you file your petition, your creditors are prohibited from any attempt at collecting on debts. Additionally, a unique protection exists in Chapter 13 cases, the automatic stay includes a “co-debtor” stay under 11 U.S.C. § 1301, which prevents creditors from acting to collect consumer debts from individuals who are liable on the debt with you, and in most cases, these protections will remain in place until the case is closed, dismissed, or a discharge is granted.
However, your secured creditors have the ability to ask the court to release the automatic stay if you are behind on your payments for your mortgage or car note. Creditors can even get permission to foreclose if your plan does not provide for catching up on late mortgage payments, as well as covering your ongoing mortgage payment. Our Miami Chapter 13 bankruptcy attorneys can deal with these creditors on your behalf.
Your Chapter 13 bankruptcy case will typically take between 3 and 5 years to complete, depending on the details of your plan. While the timeframes for a given Chapter 13 can vary, every plan must be no shorter than 3 years and no longer than 5 years.What Debts Can I Discharge in Chapter 13?
Most, if not all, of your unsecured debts get discharged. This includes credit card debt, personal loans, business loans that you personally guaranteed, payday loans, and medical bills. In a Chapter 13, you unsecured debts get discharged at the completion of the plan. .
A Chapter 13 bankruptcy will typically remain on your credit report for 7 years.
Declaring bankruptcy can be a difficult event, but it will be much more manageable if you have a trained and experienced attorney at your side every step of the way. The Miami Chapter 13 bankruptcy lawyers from Werner, Hoffman, Greig & Garcia are prepared to guide you through this process with clarity and professionalism. Contact us as soon as possible to schedule your free consultation.
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