Floridians facing massive debt and constant creditors’ calls will need to consider all options for getting out of financial trouble.
Chapter 13 bankruptcy is a great option for people who have a home, car, and other assets. However, there are some important facts that you should be aware of from the beginning.
The Key Benefits of Chapter 13
To file for Chapter 13, individuals must be able to afford a payment plan, handled by the trustee, who distributes payments to creditors. Creditors must receive at least the fair market value of any collateral, such as a car, while unsecured claims will not require full repayment.
What Is the Time Frame for a Chapter 13 Bankruptcy Before There’s a Discharge?
Chapter 13 bankruptcy is designed for individuals with a regular income and job, as their income is used to propose a repayment plan. The plan duration is determined based on the state’s median income, with a three-year plan for those below the median and a five-year plan for those above it.
Bankruptcy Can Be Difficult and It Is Important to Get Help
It is important to note that a bankruptcy filing is not the same as a bankruptcy file. While filing for bankruptcy may be necessary for some individuals, it is important to consider factors such as income, debts, and other circumstances before deciding on a specific type of bankruptcy.
This post was written by Trey Wright, a Florida Bankruptcy Lawyer! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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