Orlando Chapter 13 Bankruptcy Attorney
Every year, more than one million people file for bankruptcy. According to U.S. News & World Report, the most common reasons that Americans seek consumer bankruptcy protection include credit card debt and overwhelming medical bills. To be sure, healthcare is extremely costly, and unexpected medical expenses can quickly result in devastating debt. Divorce also can be a contributing factor to filing bankruptcy. Depending on your situation, you may be looking at different types of bankruptcy. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows debtors to keep their property while repaying certain debts over a set period of time, but no more than you can comfortably afford. In short, it can help you to reorganize your debts.
Filing for personal bankruptcy in Florida is an extremely complicated process. It’s very important to discuss your case with an experienced Orlando bankruptcy attorney before you file. If you have questions or concerns about whether Chapter 13 bankruptcy is right for you, don’t hesitate to contact the experienced Orlando Chapter 13 bankruptcy attorneys of Goodblatt · Leo for a free consultation.
Chapter 13 Bankruptcy Attorneys in Orlando
Why do some people file for Chapter 13 bankruptcy instead of Chapter 7 bankruptcy? Each person’s financial situation has its own nuances and complications. In general, Orlando residents tend to file for Chapter 13 bankruptcy for a few different reasons, including but not limited to:
- You cannot pass the means test for Chapter 7 bankruptcy;
- You have too much property and you want to retain it;
- You want to reorganize or modify certain debts;
- You want to stop a foreclosure from taking place;
- You want to modify your mortgage;
- You want to catch up on back taxes without additional interest and penalties; and/or
- You want to eliminate a second mortgage or a home equity line of credit.
Since Chapter 13 doesn’t involve asset liquidation, how does it work? Generally speaking, Chapter 13 bankruptcy involves the creation of a payment plan through which you will repay both unsecured and secured creditors, but not necessarily in full. Your repayment plan will detail how you will make payments on your debts and how much you will repay to each creditor. Based on the plan, you will make payments on your debts for five years, or until certain creditors are repaid. Your repayment plan will make clear which debts are to be paid and should be repaid in full. A budget will be prepared so your payments are comfortable for you.
Eligibility for Chapter 13 Bankruptcy in Orlando
As with Chapter 7 bankruptcy, you will need to prove your eligibility for protection under Chapter 13 of the Bankruptcy Code. In general, eligibility is based on the following:
- Proof of income and ability to meet the obligations of your repayment plan; and
- Proof that your debts do not exceed the maximum debt limits.
When you file for Chapter 13 bankruptcy, Florida’s bankruptcy exemptions will be relevant, just as in a Chapter 7 filing. Why will you need to pay attention to the exemptions if you’re not discharging most of your debts? The exemptions permitted in Florida, such as the homestead exemption or personal property exemptions, will help to determine and limit the amounts you will repay to your creditors under the terms of your repayment plan.
In the event that your financial situation changes after your repayment plans goes into effect, you may modify the plan accordingly. Throughout the term of your repayment plan, it’s important to maintain a strong relationship with your Orlando bankruptcy attorney. Goodblatt · Leo represents you through the entirety of your plan, as your circumstances change, without additional fees.
Contact An Experienced Orlando Chapter 13 Bankruptcy Attorney
If you are considering filing for Chapter 13 bankruptcy, it’s important to seek advice from an experienced Orlando Chapter 13 bankruptcy attorney in Orlando. Contact the law office of Goodblatt · Leo today to learn more about how we assist consumers in Central Florida.