There are many different types of Hollywood, Florida bankruptcy available under federal law. Individuals filing personal bankruptcy typically have two options: Chapter 7 or Chapter 13. A Chapter 13 bankruptcy is also known as a wage earner’s bankruptcy because people filing this type earn an income that allows them to pay off their debts. Below, our Hollywood Chapter 13 bankruptcy lawyer outlines more about the process and who qualifies.
What is Chapter 13 Bankruptcy?
A Hollywood Chapter 13 bankruptcy does not discharge, or eliminate, debt in the same way a Hollywood Chapter 7 bankruptcy does. Instead, this type of bankruptcy reorganizes debt into a repayment plan. The repayment plan extends between three and five years and you pay your debt slowly and in installments during that time. This can make your debt more manageable while also forcing creditors to accept a payment plan if they have not yet already. Just know that our Hollywood, Florida Chapter 13 bankruptcy lawyers have a plan for you after bankruptcy.
Because borrowers repay debt with their income, you likely will not lose any of your property during a Chapter 13 bankruptcy. This also makes it different from a Chapter 7 bankruptcy.
How Does Chapter 13 Bankruptcy Work?
During the Chapter 13 bankruptcy process, you must submit a repayment plan that protects certain property, such as your home, from foreclosure or repossession. You can also ask for other debt to be discharged. You qualify for Hollywood Chapter 13 bankruptcy if the following apply to your situation:
- You must earn a steady income.
- You did not file a Hollywood, Florida Chapter 13 bankruptcy during the two previous years, or a Chapter 7 bankruptcy during the previous four years.
- Your current tax filings must be current.
- You cannot have unsecured debt over the amount of $419,275 or secured debt over the amount of $1,257,850. As changes are made to the consumer price index, these figures also adjust.
What is the Process of Chapter 13 Bankruptcy?
If you know you want to file Chapter 13 in Hollywood, you should find a Hollywood Chapter 13 bankruptcy lawyer near you who can guide you through the process. There are various costs associated with filing Hollywood Chapter 13 such as the $313 filing fee, as well as legal fees. You must provide certain information when filing, including:
- A listing of your creditors and the amount owed to them.
- Proof of your income.
- List of any properties owned or leased in your name.
- List of your monthly living expenses.
- Tax information, including your federal tax return and a listing of taxes you have not yet paid.
Before filing Hollywood Chapter 13 bankruptcy, you also cannot have had a previous bankruptcy petition dismissed within 180 days. You must enroll in and complete a credit counseling course within those 180 days. Once you have completed these requirements and your Hollywood Chapter 13 bankruptcy has filed the paperwork, the court clerk will notify you, your creditors, and your court-appointed trustee that collection accounts are suspended on your account. This means creditors and debt collectors cannot contact you.
You will then submit your repayment plan. An administrator or bankruptcy judge will determine if it meets the legal requirements and if it is fair. Creditors can challenge the repayment plan, but the majority of bankruptcy judges also allow borrowers to adjust their plans many times.
You will start making payments according to the plan once it is approved. You do not have to contact your creditors, as your trustee will distribute the payments to creditors. Sometimes, it is possible to accelerate the terms of the plan or even ask your trustee for a modification if your financial situation becomes worse. If you do not make payments according to the plan, you are at risk of having your Hollywood Chapter 13 bankruptcy case thrown out.
Who Qualifies for Chapter 13?
As long as you meet the legal requirements listed above, you qualify to file Chapter 13 bankruptcy. Many people choose to file Chapter 13 because they do not qualify for Chapter 7.
A Chapter 7 bankruptcy requires borrowers to pass a means test, which must show that they do not have sufficient income to cover their debt. It is very difficult to pass the means test. Those who do not, but still have a significant amount of debt, sometimes then choose to file Chapter 13. Some people file Chapter 13 even when they qualify for Chapter 7 because they do not want to lose certain assets, such as their home or vehicle.
What Debt is Discharged During Chapter 13 Bankruptcy?
After you have completed your repayment plan, any debts remaining on the accounts are typically discharged. The debts that qualify for discharge are as follows:
- Credit card debt: The majority of borrowers have a certain amount of credit card debt they would like to discharge. Credit card debt is considered non-priority unsecured debt, meaning outstanding balances are discharged once the repayment plan is complete.
- Medical debt: Medical debt is one of the main reasons people file bankruptcy and this can also be discharged once the repayment plan is complete.
- Personal loans: Personal loans that do not have collateral attached to them, such as a payday loan, can be discharged once the Chapter 13 repayment plan is complete.
Just as there are common types of debt that can be discharged during bankruptcy, there are also certain types of debt that cannot be discharged. These include child support, alimony, and tax debt. To determine which debts you can discharge, those you cannot, and which type of bankruptcy is right for you, it is critical that you speak to a Hollywood Chapter 13 bankruptcy lawyer near you.
How Can a Hollywood Chapter 13 Bankruptcy Lawyer Near You Help?
You are not required to have legal representation when filing Chapter 13, but there are many benefits a Hollywood, Florida Chapter 13 bankruptcy attorney can bring to your case. A Hollywood bankruptcy lawyer will evaluate your financial history and debts and recommend whether Chapter 13 is right for you. A Hollywood bankruptcy attorney near you can also advise on the allowable expense limits and how they will impact your repayment plan. When working on your case, a Hollywood bankruptcy lawyer will also:
- Prepare and file all necessary forms: Filing for bankruptcy requires an immense amount of paperwork. A bankruptcy lawyer near you will collect all the necessary information, prepare your forms properly, and review all details before submitting the paperwork to the court.
- Attend court hearings: To confirm your Chapter 13 repayment plan, you will have to attend different court hearings. You will also have to meet with the bankruptcy trustee and perhaps even a bankruptcy judge. An experienced Hollywood lawyer can represent you during these hearings, allowing you to enter into them confidently.
- Communicate with creditors and the trustee: You will have to speak to your bankruptcy trustee regularly and potentially even your creditors. A Florida bankruptcy lawyer can communicate with these parties on your behalf and respond to their inquiries promptly.
Essentially, a Hollywood, Florida Chapter 13 lawyer near you will ensure your case is filed properly while also helping you avoid potential pitfalls, such as having your case dismissed. We have helped hundreds of bankruptcy clients through Chapter 13 in Florida. You can hear or read some of their testimonials to see how we can help you too.
Contact a Hollywood Chapter 13 Bankruptcy Attorney Near You
If your debts have become unmanageable and you earn a regular income, a Chapter 13 bankruptcy may be the right option for you. At Loan Lawyers, our Hollywood Chapter 13 bankruptcy attorney can advise on whether you qualify and help you through the process so you obtain the best possible outcome in your case. Call us now at (954) 523-4357 or contact us online to schedule a free review of your case.
Hollywood, Florida Chapter 13 Bankruptcy Reviews
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