Talk With an Experienced Chapter 13 Bankruptcy Lawyer in Hialeah, FL
Whether married or single, people often find that they are carrying an immense amount of debt that they cannot repay.
In these situations, people may know that bankruptcy is an option that can give them a fresh start.
Unfortunately, many people are hesitant to file bankruptcy because they are concerned about their homes, vehicle, and other property. People also worry about how filing for bankruptcy will impact their credit score.
If you have found yourself in this situation, there is good news. You can still file for bankruptcy while protecting your property.
Below, our Hialeah Chapter 13 lawyer explains further.
Understanding Chapter 13 Bankruptcy
A Chapter 13 bankruptcy allows married couples as well as individuals to restructure their debt. As with other types of bankruptcy cases, the court will assign a trustee to the case.
The job of the trustee in any bankruptcy case is to oversee the case and to ensure the borrower is meeting their obligations. During a Chapter 13 bankruptcy, the trustee has two additional tasks. These are to receive payments from the borrower and to make payments to the creditors.
Unlike a Chapter 7 bankruptcy case, Chapter 13 does not immediately discharge debt.
Instead, a repayment plan is created that will last between three and five years. Once the plan is completed, any remaining debt is then discharged unless it is disqualified.
The goal of a Chapter 13 bankruptcy is to help borrowers catch up on secured loans, such as mortgages, and resolve most of their debts. Chapter 13 is often referred to as a ‘wage earner’s bankruptcy’ because a borrower must earn a regular income to qualify.
Qualifying for Chapter 13 Bankruptcy
There are several eligibility requirements when filing Chapter 13 bankruptcy. These are as follows:
- Regular income: You must earn a regular income, even if you are self-employed or operating as an unincorporated business.
- Individuals or married couples: You must file Chapter 13 bankruptcy as an individual or as a married couple. Organizations, companies, and partnerships are not eligible to file.
- Limit for unsecured debt: Your unsecured debt cannot exceed $465,275.
- Limit for secured debt: Your secured debt cannot exceed $1,395,875.
- No previous bankruptcy dismissal: You are not eligible to file Chapter 13 bankruptcy if you had a bankruptcy case dismissed within the previous 180 days due to a failure to comply with the orders of the court or if you willfully failed to appear before the court. You also cannot file if a previous bankruptcy petition was involuntarily dismissed within the previous 180 days because creditors asked the court to lift the automatic stay so they could recover assets upon which they have a lien.
- Credit counseling: You must attend and complete a credit counseling course from an approved credit counseling agency.
Who Can File Chapter 13 Bankruptcy?
Anyone can file Chapter 13 bankruptcy as long as they meet the following requirements:
- Own property, are a citizen, or have permanent residency status in the United States
- Do not have a Chapter 7 filing in the last four years
- Do not have a Chapter 13 filing in the last two years
- Meet other eligibility requirements as listed above
When Should You File Chapter 13 Bankruptcy?
Even if you meet the eligibility requirements and can file Chapter 13, it does not necessarily mean you should.
A Chapter 13 bankruptcy may be right for you if any of the following apply to your situation:
- You are behind on your mortgage payments, fear foreclosure, and want to keep your home
- You are behind on vehicle loan payments, such as those for a car, boat, or motorcycle, are at risk for repossession, and you want to keep the vehicle
- You have unpaid utility bills and are at risk of having them shut off, and want to keep your electricity, gas, or water running
- You filed Chapter 13 bankruptcy four years ago or more and are still finding it difficult to repay your debt
- A creditor has filed a lawsuit against you and is threatening to freeze your bank account or garnish your wages and you need to protect your finances
- You own a sole proprietorship and are behind on payments or have accumulated too much debt and want to file Chapter 13, which you can do under your name but if the name of the sole proprietorship is different, you cannot file in its name
- You have student loan debt, which you can restructure into a payment plan or, if you can prove economic hardship, potentially get it discharged
The Chapter 13 Process
Once you have submitted the bankruptcy paperwork with the court, you will receive a case number and a Notice of Bankruptcy Case Filing.
You can use the notice to prove to creditors that you are protected by the automatic stay, which prevents creditors and debt collectors from attempting to collect a debt during your bankruptcy case.
You will have certain obligations when filing Chapter 13 and they are as follows:
- 341 Meeting of Creditors: You are required to attend a Meeting of the Creditors. When working with a bankruptcy lawyer, can represent you and help you through this process. If you have submitted all the necessary documents and fully disclosed your financial information, you will not have to contribute much at the meeting but you must be in attendance.
- Financial management course: You must successfully complete a financial management course before your bankruptcy ends. You will receive a certificate upon completion and must submit this to the court.
- Payment plan: You must successfully complete the payment plan, or your bankruptcy will be unsuccessful and creditors can take legal action against you.
Call Our Chapter 13 Bankruptcy Lawyers in Hialeah Today
At Loan Lawyers, our Hialeah Chapter 13 bankruptcy attorneys know how debt can impact your life.
If you cannot currently pay your bills but you have a regular income and you want to protect your property, it is important to call us now at (954) 523-4357 or contact us online to schedule a free consultation and to learn more about how our Chapter 13 attorneys can help.
Things You Should Know Before Filing for Bankruptcy
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