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 that 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 that may be affected by a Chapter 13 bankruptcy proceeding.
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 potential to recover a larger portion of the debt is diminished.
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.
The longer an individual waits to obtain legal representation may directly affect their ability to achieve a successful outcome. Therefore, if you are considering filing for a chapter 13 bankruptcy, it is important to seek the legal advice and representation of an experienced chapter 13 bankruptcy attorney or lawyer as soon as possible.
Call 407.343.4442 to discuss your legal rights and options relating to Chapter 13 Bankruptcy issues or disputes.
Kissimmee Chapter 13 Bankruptcy Lawyer, serving the Chapter 13 Bankruptcy Attorney legal needs of those in Kissimmee, Daytona Beach, Port Orange, New Smynra Beach, Deltona, Volusia County and Central Florida area.