Jacksonville Chapter 13 Bankruptcy Lawyer
Helping Florida Residents Erase Their Debt
Chapter 13 bankruptcy allows individuals with regular income to get some breathing room from overwhelming consumer debt. After Chapter 7, Chapter 13 is the second most popular type of bankruptcy filing in the United States, accounting for over 270,000 bankruptcy filings every year. Chapter 13 provides a means for delaying and reducing monthly loan payments, setting up a payment plan with the help of a bankruptcy trustee so that a debtor can chart a path toward financial security.
If you have a regular income but are struggling with consumer debt, speak with a seasoned Jacksonville Chapter 13 bankruptcy lawyer at Albaugh Law Firm to discuss whether Chapter 13 bankruptcy is the best option for you. Let us help you find financial freedom.
What Is Chapter 13?
Chapter 13 bankruptcy refers to filing for bankruptcy under Chapter 13 of the United States Bankruptcy Code. Unlike Chapter 7, Chapter 13 will not require the sale of any assets. Instead, the debtor, their bankruptcy attorney, a trustee appointed by the bankruptcy court, and covered creditors will work together to create a repayment plan for the debt owed. Covered debts will be adjusted and reorganized into the repayment plan.
The repayment period will last three or five years and will generally reduce the total amount of debt owed. At the end of the repayment period, any remaining covered debt will be discharged. Chapter 13 debtors thus benefit from delayed payments on debts currently due, reduced monthly payments, and a reduction in the total amount due.
Chapter 13 Bankruptcy Process
Before you can file for bankruptcy, one prerequisite is that you will have to undergo credit counseling through an agency that is approved by the appointed bankruptcy trustee. You will then need to file for Chapter 13 bankruptcy and, if approved, have your debts reorganized in a repayment plan.
This plan will describe how each of your debts will be repaid. Certain priority debts are likely to be repaid in full, while other nonpriority can be reduced substantially. Once you complete your Chapter 13 plan and prove that you are current on your financial obligations, all remaining eligible debts will be discharged.
Reduce and Eliminate Consumer Debts With Chapter 13
Chapter 13 is a great option for wage earners struggling with debt. Chapter 13 is perfect for:
- People who have fallen behind on their mortgage payments
- People who need time to pay back taxes
- People who want to protect their home from foreclosure
- People drowning in a cycle of credit card debt and other high-interest loans
Under a Chapter 13 plan, you may be able to reduce the amount you owe on secured debts such as mortgages, car loans, and other debts secured by property. Typically, you can avoid payment in full if the payments would otherwise last longer than the repayment plan period. You may even be able to wipe out a “junior mortgage” (such as a second home mortgage).
Additionally, Chapter 13 allows debtors to significantly reduce the amounts they owe on general nonpriority unsecured debt, such as credit card debts, personal loans, medical bills, and utilities. At the end of the plan period, any remaining covered debt will be discharged, just like a Chapter 7 discharge.
Chapter 13 even helps with a few additional types of debts that are not covered by Chapter 7, including:
- Debts incurred to pay tax obligations
- Debts for willful injury to property
- Certain debts arising from divorce proceedings
Eligibility for Chapter 13
To be eligible for Chapter 13 bankruptcy, a debtor must be able to demonstrate that they have a source of regular income sufficient to meet monthly payment obligations. Chapter 13 is typically designed for individuals who have a regular income that is higher than the state median and who have the funds to honor the approved repayment plan over the next three or five years. Chapter 13 also includes limitations on the total amount of debt that a debtor may include in the plan. If you are considering Chapter 13 bankruptcy, speak with our Jacksonville lawyers as soon as possible to discuss your eligibility.
Advantages of Reorganization Bankruptcy
Many individuals can benefit from a Chapter 13 bankruptcy. By filing under this chapter, individuals can stop foreclosure proceedings and have delinquent mortgage payments forgiven. Another advantage of Chapter 13 bankruptcy is that it permits individuals to reschedule their secured debts and extend them throughout the life of the repayment plan, which can ultimately lower payments. If you need further information regarding this type of bankruptcy, contact the Albaugh Law Firm to speak with one of our Jacksonville Chapter 13 attorneys.
Speak With Our Jacksonville Chapter 13 Bankruptcy Lawyers Today
If you are struggling with debt and looking for a way out, the debt relief and bankruptcy attorneys at Albaugh Law Firm are here to help. Our goal is to get our clients the financial freedom they deserve. Contact Albaugh Law Firm today to discuss whether Chapter 13 bankruptcy is the right move for you. For a free consultation with a Jacksonville bankruptcy lawyer, call us at 904-471-3434.