You Deserve To Get Your Life Back
Bankruptcy Attorneys In Miami-Dade, Broward And Monroe Counties

Is a Chapter 13 bankruptcy your key to financial recovery?

On Behalf of | Jul 24, 2024 | Chapter 13 Bankruptcy

Are you struggling with overwhelming debt? Chapter 13 bankruptcy might be the solution you are looking for. This form of bankruptcy offers advantages that can help you regain control of your finances and move towards a more stable future.

The basics of Chapter 13 bankruptcy

If you have a regular income, Chapter 13 bankruptcy allows you to settle all or part of your debts. Unlike Chapter 7 bankruptcy, which involves liquidating assets, Chapter 13 lets you keep your property while repaying your debts over three to five years.

Key Advantages of Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers several benefits, including:

  • Protection from foreclosure

One of the most notable benefits of Chapter 13 bankruptcy is the ability to keep your home. When you file for Chapter 13, an automatic stay goes into effect, halting all collection activities. This may include foreclosure proceedings. This allows you to catch up on missed mortgage payments over time.

  • Debt reorganization and reduction

Chapter 13 allows you to reorganize your debts into a manageable repayment plan. You can often reduce the total amount you owe on unsecured debts like credit cards. This can significantly lower your overall debt burden and make repayment more feasible.

  • Flexible repayment options

With Chapter 13, you can propose a repayment plan tailored to your financial situation. This plan can prioritize certain debts while providing more time to pay off others. You will work with a trustee to develop a plan that meets both your needs and the court’s requirements.

  • Protection for co-signers

Chapter 13 can protect co-signers on your debts from collection efforts. This “co-debtor stay” can prevent creditors from pursuing your co-signers if you adhere to your repayment plan.

Choosing Chapter 13 bankruptcy allows you to take a proactive step toward financial recovery. It offers a structured approach to debt repayment while safeguarding your assets and co-signers. However, bankruptcy is a complex legal process. It may be essential to consult an experienced attorney to determine if Chapter 13 is the right choice for your situation.

Archives

Kingcade & Garcia | A Miami Law Firm