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Chapter 13 Bankruptcy

The purpose of chapter 13 bankruptcy is to enable an individual with a regular source of income to propose a chapter 13 plan that provides for their various classes of creditors. Under chapter 13, the Bankruptcy Court has the power to approve a chapter 13 bankruptcy plan without the approval of creditors as long as it meets the statutory requirements under chapter 13. Chapter 13 bankruptcy plans are usually three to five years in length, and may not exceed five years.

In recent years, some bankruptcy courts have allowed Chapter 13 to be used as a platform to expedite a mortgage modification application.

Our experienced Jacksonville bankruptcy attorneys can guide you through figuring out if Chapter 13 Bankruptcy is the best option to help you restructure your debts.

Why should I file a Chapter 13 Bankruptcy?

You initially sought to file a Chapter 7, but you make too much money and fail to pass under the income thresholds set by the U.S. Trustee.
See: www.justice.gov/ust/eo/bapcpa/meanstesting.htm

You are seeking to save your home through the bankruptcy court modification mediation program.

Just like with a Chapter 7 filing, you would like to put a freeze on a creditor who is looking:

  • To levy (take away) your truck or car
  • Foreclose you out of your property (your home)
  • To garnish your wages (take money out of your account or straight from your employer)

Depending on certain factors you could still avoid paying a substantial portion of your debt back!

You could restructure most of the debts that you owe into an affordable monthly payment.

If you feel like you agree with some of these points, I suggest you consider talking immediately to a bankruptcy attorney. Any delay on your part could cause you to lose income, a vehicle or your home. These circumstances are often times avoidable, if appropriate action is taken at the appropriate time.

But am I eligible to file a Chapter 13 bankruptcy? Yes!

The only major requirement of a Chapter 13 bankruptcy filing is that you devote all disposable income towards payment on your Chapter 13 plan.

But keep in mind, you may be forced to give up some non-core property in a Chapter 13 bankruptcy. While not as stringent as in a Chapter 7 filing, the U.S. Trustee will look to sell property that is not considered essential in order for you to make your Chapter 13 plan payment.

Get a free consultation with a Jacksonville bankruptcy attorney today!