Are you considering filing a Chapter 13 bankruptcy?
Do you want information about how the process works? Hi, I’m David Candler Hicks Alliance
of the Alliance Legal Group. We’re a Florida law firm that focuses on helping clients facing
bankruptcy. Join me today as we discuss Chapter 13 bankruptcy. TopicIn Chapter 13 bankruptcy, you can keep
your property, but have to pay back all of the secured portion and some of the unsecured
portion of your debts over a three or five-year period. This differs greatly from a Chapter
7 bankruptcy where most of your debts are cancelled. Chapter 13 requires you to use your income
to repay some or all of your debt, so you must prove that you can afford to meet your
proposed payment plan. If your income isn’t steady or is too low to support your Chapter
13 payment plan, the court might dismiss you case. The same will be true if your total
debt is too high. Assuming you’re eligible, before you can
file for bankruptcy, you will be required to receive credit counseling from an approved
agency. To begin your bankruptcy process, you’ll file a petition for bankruptcy with
the bankruptcy court, along with a number of supporting documents. The most important
part of your Chapter 13 paperwork will be your repayment plan. Your repayment plan will
describe in detail how and when you’ll pay your debts to each creditor. Generally, your Chapter 13 plan must pay certain
debts in full. These debts are called “priority debts,” because they are important enough
to jump to the head of your obligations. Examples include child support, alimony, wages you
owe employees, and certain tax obligations. Next in line are your regular payments on
secured debts, such as a car loans or a mortgage, as well as repayment of any arrears on your
debts. Your plan must also show that any disposable
income you have left after making these required payments will go towards repaying your unsecured
debts. The length of your repayment plan depends
on how much you earn and how much you owe. Most plans are either 3 or 5 years. If for
some reason you cannot finish a Chapter 13 repayment plan, for example, if you were to
lose your job in the middle of the repayment period, the bankruptcy trustee may modify
your plan, or the court might let you discharge your debts on the basis of hardship. Once
you complete your repayment plan, all remaining debts that are eligible for discharge will
be wiped out. The fact is, bankruptcy can be a complicated
process and some of the information I’ve shared today may seem a bit confusing. Contact
me and I’ll be happy to discuss your situation with you, explain your best options, and answer
any questions you may have. Best of all, it won’t cost you anything for this consultation.
I’m David Candler Hicks; have a wonderful day!