Jacksonville Chapter 13 Bankruptcy Attorney
Everyone incurs some type of debt at some point in their life. There are times, though, when people and married couples incur so much debt that it becomes unmanageable and difficult to repay. If you are in this situation, you may be hesitant to file bankruptcy because you are worried about your home, vehicle, and other property. It is true that some types of bankruptcy can impact all of these things, but that does not happen during Chapter 13 bankruptcy. Below, our Jacksonville Chapter 13 bankruptcy attorney explains whether this option is right for you.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy provides a way for borrowers to restructure their debt into a repayment plan. These plans extend between three and five years and they can make installment payments more manageable. After a repayment plan is approved by the court, borrowers do not pay creditors directly. Instead, they pay the bankruptcy trustee, who then distributes the payment to the creditors. The bankruptcy trustee is appointed by a bankruptcy judge. The trustee oversees all aspects of the bankruptcy case. After all payments are made, any remaining debt is then discharged, unless the borrower is disqualified.
Qualifying for Chapter 13 Bankruptcy
Like other types of bankruptcy, there are certain qualifying criteria for Chapter 13. These are as follows:
- Regular income: Chapter 13 is also known as the wage-earner’s bankruptcy because borrowers must have a regular source of income to qualify.
- You are filing as an individual or married couple: You must file as either an individual or married couple, as businesses are not eligible for Chapter 13.
- Debt limits: You can only file Chapter 13 bankruptcy if your unsecured debt does not exceed $465,275 and your secured debt is not valued at more than $1,395,875.
- Previous dismissals: You cannot file Chapter 13 bankruptcy if you have had a previous case dismissed within the previous 180 days due to a failure to comply with court orders or a failure to appear.
- Previous bankruptcies: You can only file Chapter 13 if you have not filed Chapter 7 in the last four years or a Chapter 13 in the last two years.
- Credit counseling: You must complete a credit counseling course from an approved agency.
Not everyone who qualifies for Chapter 13 should file. It is an important decision and a deeply personal one. If you do not think you can keep current with the repayment plan, you may want to consider Chapter 7 instead. However, filing Chapter 13 does have many benefits for those who can make the payments and may allow you to keep your home, vehicle, and catch up on bills and debts.
Call Our Chapter 13 Bankruptcy Attorney in Jacksonville for a Free Consultation
Filing Chapter 13 bankruptcy can make managing your debt much easier, but it is important to have legal representation during the process. At Ronald Cutler, our Jacksonville Chapter 13 bankruptcy attorney can provide it and guide you through the system so you obtain the best possible outcome. Call us now at 386-490-9949 or chat with us online to schedule a free consultation.
