Ocala, FL Chapter 13 Bankruptcy
Ocala Florida Chapter 13 Bankruptcy Law
Are you drowning in debt but can’t qualify for Chapter 7 bankruptcy? Chapter 13 bankruptcy may be just what you need to get relief. Like Chapter 7 bankruptcy, Florida's Chapter 13 bankruptcy helps individuals and couples eliminate debt and may be an option if you:
- Make too much money to qualify for Chapter 7;
- Are behind on your mortgage and need some time to catch up without being hounded by the lender;
- Owe back taxes; or
- Are facing vehicle repossession.
There are many other situations that may qualify you for Chapter 13 protection in Florida. Every situation is different which is why it is so important to contact an Ocala bankruptcy lawyer as soon as you start seriously thinking about bankruptcy protection. An experienced attorney can guide you to the right solution and help you get your debt under control.
The Basics Of Florida Chapter 13 Bankruptcy
Unlike Chapter 7 bankruptcy, which offers complete discharge of your debts, Chapter 13 results in an interest-free repayment plan. Under Chapter 13, you will have to repay part of your debt through a court-ordered payment plan. These plans offer a reasonable way to manage your debt without losing your assets and are effective solutions for people whose incomes are too high to file for Chapter 7 bankruptcy or who are trying to save their home from foreclosure.
Under a Chapter 13 plan, you will be assigned a payment plan based on your income and expenses. Although you will be required to allocate all of your disposable income towards the debt repayment plan, the plan only lasts until your creditors are paid in full or five years have passed, whichever comes first. A trustee will be assigned to handle the actual paying of the debts for you so you will not have to deal with your creditors directly.
Chapter 13 bankruptcy is more complicated than Chapter 7 bankruptcy, which is why consulting an Ocala Chapter 13 bankruptcy lawyer is the best way to determine your eligibility.
Advantages Over Chapter 7 Bankruptcy
Despite being more complicated than Chapter 7, there are many advantages to Chapter 13 filings. To start with, Chapter 13 can stop a foreclosure in its tracks. This gives the homeowner a chance to get caught up on mortgage payments without the risk of losing their home. Unsecured second mortgages may be eliminated under Chapter 13 as well as some secured debts and some unsecured debts that are generally not dischargeable in a Chapter 7.
Examples of unsecured debts that can be discharged under Chapter 13 are: personal loans, medical bills, credit cards issued by banks (such as Visa, MasterCard, American Express, or Discover) and retail credit cards.
Examples of secured debts that have been included in Chapter 13 protections are: mortgages, car loans, loans from finance companies, furniture, computers or electronics.
Contact the office of Schatt Hesser Mcgraw and speak with an Ocala bankruptcy attorney today. Our no cost initial Chapter 13 bankruptcy telephone consultation can give you the answers you need and help you understand the process and your options. Let us help you regain control of your finances and get a fresh start. Contact us today.