Kissimmee, FL Chapter 13 Bankruptcy Lawyer | The Orlando Law Group, PL

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Should you choose to file for Chapter 13 bankruptcy? This is an option that allows you to implement a court-supervised repayment plan. The overall amount of money that gets paid back to the creditors will vary based on the goals and resources of the debtor. In some cases, a debtor may have to pay the entire amount of debt back to the creditors. Other times, they may only have to pay very little.

It is this repayment plan that differentiates this option from Chapter 7 bankruptcy. With Chapter 7, the debts are entirely forgiven. Still, some debtors feel that it’s better to file Chapter 13 because of the benefits it can offer. Below are some of the reasons to consider Chapter 13 as well as eligibility requirements.

Should You Choose Chapter 13?

Although some people may prefer and qualify for Chapter 7, where all of the unsecured debts can be forgiven, Chapter 13 could be a better solution despite requiring you to repay all or part of your debts.

When filing Chapter 13, it will immediately stop creditors from harassing you. When your Chapter 13 plan has been approved, the court will enforce the plan if you have creditors that are uncooperative or still try to get you to pay more than you owe under the new repayment plan. Once the bankruptcy has been approved, you should only be working with a trustee, paying them so they can pay the creditors. You shouldn’t have to deal with your creditors at all.

One of the parts about Chapter 13 that creditors tend not to like is that they won’t have a choice in the matter if the court approves the bankruptcy. Even if they aren’t happy with the terms of the repayment plan, they will be bound to follow it.

Filing Chapter 13 is also going to keep creditors from suing you. It will also stop interest from rising, so the amount you owe doesn’t keep going up month after month. The plan keeps you safe from the collection. At the end of the payment plan, any unpaid balance of the dischargeable debts will be discharged.

There are, of course, other options that could be considered. These could include debt repayment plans and debt management, but these will not work for everyone. For some, working with a Chapter 13 bankruptcy lawyer in Kissimmee is a better solution. It can provide some additional time for repaying debts and help people get better control over their financial lives.

Is Bankruptcy the Right Choice for You?

Who should choose this option for dealing with their financial issues? If you are considering this choice, you should first speak to a Chapter 13 bankruptcy lawyer in Kissimmee to weigh all of your options.

Often, this will be a better choice for those who owe debts that can’t be discharged with Chapter 7. Even though not all of those debts will be discharged with Chapter 13, you can put them onto a payment plan that can make them easier to handle. Others who may benefit from Chapter 13 include those who have liens that are larger than the value of the assets they have securing the debt, those who have a lot of assets, or who are behind on their house or car payments. Filing can help to prevent actions like foreclosure from being taken.

Even though Chapter 13 is a repayment plan, it doesn’t mean that the debts have to be paid back in full. Often, the plans will provide only part of the amount owed to each of the unsecured creditors. The amount that will need to be paid back will depend on a variety of factors.

You will want to keep in mind that even though you may be given more time to pay family support and taxes, they will need to be paid in full.

Are You Eligible for This Type of Bankruptcy?

To file Chapter 13, you need to be a private individual, as businesses like partnerships and corporations won’t qualify. They would have to file Chapter 11. Additionally, you will need to have a regular income that is greater than what is considered to be your reasonable living expenses. This is to ensure you can pay back the repayment plan. If you can’t, your attorney may suggest that you should file for Chapter 7. Your debts also need to fall in line with whatever the current guidelines say.

Chapter 13 could be a good option for you, but you need to be sure you are working with a high-quality, reputable Chapter 13 bankruptcy lawyer in Kissimmee. Get in touch with Orlando Law Group and get in touch. We are looking forward to helping you with your case.