What is Chapter 13 Bankruptcy?
Daytona Beach Chapter 13 Bankruptcy will let you keep your home and other assets while also being able to settle your unsecured debts with your lenders.
Chapter 13 bankruptcy, the “wage earners” bankruptcy, restructures your selected debts and uses a repayment plan that will settle your past due balances and maintain current status on some of your bills to maintain those assets. Once the three to five year payment plan is complete, those selected debts will be dismissed and you can continue to make your regular payments on the assets you wanted to keep.
The restructured payment plan that you will agree upon with your lender will, in most cases, result in higher monthly payments that will eat up most of, if not all of your disposable income. This is why it is called the “wage earners” bankruptcy because you must have a steady and reliable source of income in order to be able to afford the repayment plan over the course of three to five years. Just like in achapter 7 bankruptcy, the filing of a chapter 13 bankruptcy requires your creditors to stop their collection efforts and can also stop foreclosures and pending lawsuits.
A chapter 13 bankruptcy in Daytona Beach is most appealing to someone who has a steady source of income but has recently experienced a large unexpected expense that has caused them to fall behind on other bills. To even qualify for this you must make over the median income in Florida and owe less than $1,010,650 in secured debt and $336,900 in unsecured debt.
Filing for chapter 13 bankruptcy can help provide relief if you have experienced a temporary financial difficulty and need some help to get back on track. The repayment plan is a big commitment and will make your budget very tight for a three to five year period, but for someone that needs the help and wants to keep their home it may be the only option. Find out if you qualify by scheduling a free consultation with a Chapter 13 bankruptcy attorney today.