If you currently have a large amount of debt, you may think paying it off is impossible. The expenses associated with an emergency can quickly spiral out of control, and many credit cards have high-interest rates that make the debt very difficult to repay. In these situations, filing for Chapter 13 bankruptcy is an option that helps many people. If you are overwhelmed with debt, our Pembroke Pines Chapter 13 bankruptcy lawyers near you can help get you back on your feet.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is often known as the wage earner’s bankruptcy because only people who earn an income are eligible to file. Chapter 13 bankruptcy restructures and reorganizes your debt instead of discharging it as Chapter 7 does. Your debt, income, and monthly living expenses are reviewed and a repayment plan is created based on your disposable income. At the end of a Pembroke Pines Chapter 13, after you have made all payments according to the plan, some of your debt may be discharged so you are not responsible for paying it. As soon as you file Chapter 13, all debt collection attempts must stop.
If your repayment plan is considered feasible and accepted, payments are made to the bankruptcy trustee. The trustee then distributes the payments among your creditors. If you do not make payments according to the plan, your case may be dismissed and any action that was stopped as part of the process can continue. For example, a debt collector may have the right to file a lawsuit against you and garnish your wages or freeze your bank account. Just know that our Pembroke Pines Chapter 13 bankruptcy lawyers have a plan for you after bankruptcy.
What Debt is Dischargeable in Chapter 13 Bankruptcy?
Any type of debt can be included in a Chapter 13 repayment plan, including some student loans and mortgage debt. However, certain types of debt cannot be discharged once you have completed the prepayment plan. The types of debt that are dischargeable include:
- Personal loans
- Payday loans
- Medical bills
- Credit card debt
- Utility bills
- Certain types of taxes
- Vehicle repossession debts
Unfortunately, not every type of debt can be discharged even once you have completed the Chapter 13 process. Non-dischargeable debt includes:
- Child support
- Alimony
- Income tax debt
- A mortgage
- Future car loan payments
Why File Pembroke Pines Chapter 13 Bankruptcy?
There are many reasons people file Chapter 13 bankruptcy in Pembroke Pines. These are as follows:
- Bring car loans current: Although you cannot discharge future car loan payments at the end of Chapter 13, the repayment plan can help you restructure any payments you are behind on, while also letting you keep your vehicle.
- Get caught up on mortgage payments: Like future car loan payments, you also cannot discharge future mortgage payments. Spreading out mortgage payments over three to five years can make paying your mortgage more affordable. The courts in the Southern District of Florida also have a program that can help you permanently modify your loan so the payment is more affordable.
- Protect your property: Unlike in a Chapter 7 bankruptcy, you do not risk losing any of your property in a Chapter 13 bankruptcy. Because you repay your debts according to the plan, it is not necessary to sell your assets and distribute the proceeds among your creditors.
Even if you start the bankruptcy process and decide at some point that it is not the right option for you, it is possible to file a Notice of Voluntary Dismissal, which will dismiss the case. It is important to remember that any action paused by the Pembroke Pines bankruptcy, such as wage garnishment, will continue once the case is dismissed.
The Role of the Trustee in Pembroke Pines Chapter 13 Bankruptcy Cases
All Pembroke Pines bankruptcy cases are assigned a trustee. Bankruptcy trustees oversee a case and interact with the borrower when necessary. It is for this reason that consumers rarely see a bankruptcy judge during the process. The trustee plays a very important role in Pembroke Pines Chapter 13 bankruptcy cases.
The trustee assigned to your case will review your Chapter 13 repayment plan, as well as the schedule and other pertinent documents. If the trustee determines that your plan is feasible and can be completed, they will recommend approval to the bankruptcy judge. As you move through the repayment plan, you will make payments to the trustee, who will then distribute them among your creditors by your plan.
How Can a Pembroke Pines 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 Pembroke Pines Chapter 13 bankruptcy attorney can bring to your case. A Pembroke Pines bankruptcy lawyer will evaluate your financial history and debts and recommend whether Chapter 13 is right for you. A Pembroke Pines 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 Pembroke Pines 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 Pembroke Pines 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 attorney can communicate with these parties on your behalf and respond to their inquiries promptly.
Essentially, a Pembroke Pines 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.
Our Chapter 13 Bankruptcy Lawyer in Pembroke Pines Can Advise You of Your Legal Options
If you are struggling with debt and are considering Chapter 13 bankruptcy, it can provide a fresh financial start. At Loan Lawyers, our Pembroke Pines Chapter 13 bankruptcy lawyers can provide the legal advice you need and give you the best chance of a positive outcome. Call us now at (954) 523-4357 or contact us online to schedule a free consultation.
Pembroke Pines Chapter 13 Bankruptcy Reviews
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