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Chapter 13 Bankruptcy Attorneys

Bankruptcy is a very difficult decision and debt relief options can be confusing – debt settlement, debt consolidation, Chapter 7 bankruptcy, and Chapter 13 bankruptcy – what does it all mean? Fortunately, Boss Law is here to help you make sense of it all. Our St. Petersburg Chapter 13 lawyers have helped thousands of people achieve financial freedom through a variety of solutions. Whatever your financial situation, we can help you develop a personalized plan to pursue a fresh start.

What Is Chapter 13?

Chapter 13 bankruptcy is generally known as a personal restructuring bankruptcy. This form of bankruptcy allows a person to “catch up” payments on installment loans like mortgages, car loans, and even rent for an apartment or home. Chapter 13 also allows a person to repay some lesser amount of credit card debt and IRS debt – over a period of three to five years. At the end of the repayment plan, all remaining unsecured debts are discharged.

You may wish to file for Chapter 13 if you are not eligible for Chapter 7. Alternatively, Chapter 13 could be the right option for you if you would like to protect certain assets from liquidation. To qualify you must have a regular income that can be applied toward making regular payments to your creditors.

How Are Chapter 13 Repayment Plans Determined?

Your Chapter 13 repayment plans will be based on a variety of factors:

Disposable income: Your disposable income is determined by your regular monthly income minus your expenses. For some people, the monthly repayment plan will be the disposable income.

Amount of debts: You must take into account all of your debts, including priority debts and unsecured debts, as well as any back payments on mortgages or car payments if you are keeping those assets.

Length of your plan: On average, payment plans will be 3 to 5 years. If your current monthly income is less than the state median income, your plan will be 3 years. If your income is higher, your plan will be 5 years.

Calculating your monthly repayment plans can be complex, so make sure you talk to an attorney to help you review your debts to help you create a reasonable plan.

The Pros of Chapter 13 Bankruptcy
Chapter 13 allows a person to keep their personal property, such as jewelry, homes, and cars.
Chapter 13 is guaranteed to at least temporarily stop foreclosure sales, evictions, and repossessions.
Chapter 13 allows a person to restructure payments for vehicle loans and some mortgages.
Chapter 13 can allow a debtor to pay far less to creditors (credit cards, etc.) than non-bankruptcy alternatives.
Chapter 13 is often a fantastic alternative to IRS debt and often reduces the amount owed.
Chapter 13 often offers mediation programs that may allow a person to restructure their mortgage, student loan, or child support obligations.
The Cons of Chapter 13 Bankruptcy
It takes longer for credit recovery, as credit does not begin to recover until the Chapter 13 is completed – which can be as long as five years.
Student loans and child support cannot be eliminated – it can only be modified.
The debtor will likely have all credit cards closed – even cards with a $0 balance.
Chapter 13 repayment is typically calculated off of a person’s disposable income – which means extra cash is meant to go to the creditors.
How Can Boss Law Help You?