Chapter 13 Bankruptcy
A Chapter 13 bankruptcy, also called a wage earner's plan, allows you to develop a repayment schedule to repay some or all of your debt. Any individual or married couple can file for Chapter 13 bankruptcy relief provided their unsecured debts are below the threshold limits.
In a Chapter 13 bankruptcy, a plan is developed to repay some amount to your creditors for an established period of time (usually three to five years). The amount of the monthly plan payment is based on your disposable income. Disposable income is the income left over after deducting your reasonable and necessary expenses. This amount is then paid to the Chapter 13 Trustee who in turn pays your creditors in accordance with the terms of the plan.
While you are making your payments, your creditors are prohibited from pursuing any collection efforts against you. Once you have satisfactorily completed the repayment period, you are issued a discharge and are no longer legally responsible for paying the remaining balance for the dischargeable unsecured debts.
There are advantages and disadvantages to both Chapter 7 and Chapter 13 bankruptcies. The primary advantages to filing a Chapter 13 bankruptcy is that you can often cure delinquent mortgage payments, stop a foreclosure on your home, stop a vehicle repossession, restructure debts, and keep property that you might otherwise loose in a Chapter 7.
The factors which determine your eligibility for Chapter 13, the length of your plan, and the amount of your monthly payment can be complex. At the Law Office of Nancy Akel Draughon, P.A., we have the skills and knowledge to evaluate your situation and obtain for you the most advantageous plan at the lowest possible monthly payment.
For further information regarding a Chapter 13 bankruptcy, please contact us directly at 904-394-3205. You can also take advantage of our Free Bankruptcy Evaluation tool or email us at info@NorthFloridaBankruptcy.com.
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The Law Office of Nancy Akel Draughon, P.A. is a debt relief agency. We help people file for bankruptcy relief under the United States Bankruptcy Code.
