Many debtors elect Chapter 13 bankruptcy as a debt relief solution because they are not eligible for Chapter 7 bankruptcy, which wipes out most or all consumer debt. In contrast, Chapter 13 bankruptcy involves a reorganization and repayment of both secured debts (such as a mortgage and a car loan) and unsecured debts (such as credit card debt and medical bills).
A variety of special circumstances may lead an individual or couple to choose to file Chapter 13:
- Income levels are too high to qualify for Chapter 7
- Home equity is high
- Debtors have assets with a total value higher than allowed through bankruptcy exemptions, and wish to keep those assets
- Business ownership, an expected inheritance or a family-owned vacation home makes Chapter 7 inadvisable.
A means test will help determine whether you are eligible for Chapter 7. If not, then Chapter 13 bankruptcy is most likely available to you as a debt relief solution. Chapter 13 offers many debtors distinct advantages such as:
- You may be able to repay mortgage payments, child support payments, student loans and other unpaid obligations — both secured and nonexempt debts — over several years' time, with little or no interest and without penalty.
- You may be able to repay your car loan according to your car's actual resale value rather than the stated total on your loan.
A Chapter 13 filer makes affordable monthly payments to a trustee, who distributes proceeds to creditors. At the end of three to five years, remaining consumer debt is discharged or eliminated. In many cases, the total repaid equals only a small percentage of the original total.
The law offices of the Law Offices of Fisher & Frommer, PLLC, helps individuals file for Chapter 13 bankruptcy and establish viable repayment plans for debts. A qualified and experienced Chapter 13 bankruptcy attorney of the Law Offices of Fisher & Frommer, PLLC, has helped numerous debtors get out from under crushing debt and return to living financially healthy lives.
Start Paying Back Your Debt Affordably With the Help of the Law Offices of Fisher & Frommer, PLLC
From our law offices in Lake Mary, Tampa and Orlando, Florida, we reach out to clients throughout a broad geographical region in each state. To schedule a free consultation with a knowledgeable Orlando bankruptcy lawyer, please call the law offices of the Law Offices of Fisher & Frommer, PLLC, today or e-mail us through this website.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
