Work with an Experienced Chapter 13 Bankruptcy Lawyer in Altamonte Springs
Are you dealing with a substantial amount of debt that you feel you simply can’t pay back with the current payments? You are likely worried about what this will mean for your financial future and whether taking an approach like bankruptcy could work for you. The best way to determine if going through this process is the best option for you is to talk with a bankruptcy lawyer in Altamonte Springs.
What Is Chapter 13 Bankruptcy?
Those who are considering bankruptcy are going to either file for Chapter 7 or Chapter 13. Chapter 7 is generally for individuals who can’t pay their debts, and it liquidates assets except those that are protected. It is a more extreme type of bankruptcy. Chapter 13, on the other hand, is more similar to a reorganization plan that can help protect from foreclosure and repossession.
With Chapter 13, debtors are still likely going to have to pay back their debts. They will be put on a payment plan that typically lasts from three to five years. The details of the plan will vary from one person to the next. You can talk with the Chapter 13 bankruptcy lawyer in Altamonte Springs about the process and determine how your case would likely work.
Who Is Eligible?
Many will find that they are eligible to file for Chapter 13; however, there are certain requirements. You can have no more than $419,275 in unsecured debt. This would include things like credit card debt and personal loans. You can have no more than $1,257,850 in secured debt, which would include things like car loans and mortgages. Keep in mind that these numbers do change over time to match with changes in the consumer price index.
Additionally, commodity brokers and stockbrokers are not able to file Chapter 13 even if they have personal debts. To determine your eligibility, you will want to get in touch with a Chapter 13 bankruptcy attorney in Altamonte Springs.
Bankruptcy Doesn’t Eliminate All Debts
Although bankruptcy—both Chapter 7 and Chapter 13—can help you eliminate and deal with many of your debts, certain debts still need to be repaid and can’t be forgiven. Spousal support and child support payments, for example, cannot be forgiven. However, bankruptcies can help with many types of debts, and sometimes, it will be the best decision for you.
What Information Is Needed to File for Chapter 13?
In addition to the filing fees, there are certain items that will need to be provided when filing Chapter 13. You will need to provide a list of creditors and the number of the creditor’s claims. You also need to disclose the amount and sources of your income. You also have to provide a list of property, leases, and contracts in your name and a breakdown of your monthly living expenses. Additionally, you need to provide your most recent federal tax return and a statement of unpaid taxes, if there are any.
Those who are going to go through bankruptcy are also required to undergo credit counseling prior to the filing a petition. The agency through which you get the credit counseling needs to be from an approved agency. Your Chapter 13 bankruptcy lawyer in Altamonte Springs can suggest agencies to you.
The Repayment Plan
One of the things that you need to remember is that Chapter 13 differs from Chapter 7 in that you will still have to repay the debt. You will need to propose a repayment plan with the help of your attorney. Once the plan has been suggested, a hearing will be held by an administrator or a bankruptcy judge to make sure the plan meets the requirements and that it is fair for those involved. In some cases, creditors might object to the plan if they feel they aren’t getting enough. Ultimately the court will have the final say.
Working with an attorney to get the plan created can help to make things easier. Debtors also have to work with a trustee that will distribute the payments to the creditors. According to how Chapter 13 works, you don’t need to have any contact with the creditors yourself. Additionally, the creditors are not allowed to contact you to try to recover debts if you are meeting the terms of the agreement.
Should You Work with a Bankruptcy Lawyer in Altamonte Springs?
If you are facing financial problems, you may find that choosing bankruptcy will be the best option for you. When you are searching for the right attorney to answer your questions and help with the bankruptcy process, consider Orlando Law Group. We have excellent bankruptcy lawyers in Altamonte Springs who can help you determine whether it is the right choice for you or not.