Debt can be stressful. Its ramifications can affect your whole life. With creditors pestering you for payments you can’t afford and worries about how you’ll be able to afford to live your life, it’s hard to know where to turn to get your financial future back on track. But whatever debts you owe, facing your debts is never something you should have to do alone.
While some have tried to paint bankruptcy in a shameful light, in reality, bankruptcy is one of the most useful ways to reestablish your finances through legal means. With multiple ways to proceed and file bankruptcy, there are several avenues toward getting back on track through declaring bankruptcy. There is a lot to consider when filing for bankruptcy, and you will want some legal expertise to help you navigate through your journey to better finances.
The seasoned team of attorneys at Badgley Law Group is here to help you as you file your bankruptcy claim in the Clermont, Florida, area. We know that bankruptcy can be frightening, which is why we offer compassionate assistance to clients and give them the guidance they need to successfully navigate the process and file for bankruptcy. Having an experienced team well-versed in navigating a bankruptcy petition is vital to ensure you have done all you can to obtain the most favorable result in your specific situation. The team at Badgley Law Group is here to offer you that essential resource.
Chapter 13 bankruptcy is one of 6 bankruptcy filing options, though it is one of the most commonly used alongside Chapter 7. Chapter 13 bankruptcy allows debtors who have a set and healthy regular income to negotiate a budgeted effort that works to repay some or all of their personal debts, typically on a monthly payment plan.
Unlike Chapter 7, which seeks discharges of debts through creditors taking nonessential assets as repayment, Chapter 13 is designed to pay back part or all of a debt but in affordable and fair amounts over several years. This time frame is designated by a number of factors. First, the debtor’s monthly income is a major determining indicator of the length of time a debt is paid off over. If the debtor’s monthly income is below the standard applicable state median, the payment will take place over three years unless the court recommends a longer period.
If this monthly income is above the applicable state median, the debtor will pay for a longer period, typically up to five years, though the law does not allow for periods longer than this. Also, the debtor is protected from creditors by the law, so they cannot resume or continue any of their collection efforts.
When seeking to file a Chapter 13 bankruptcy position, Badgley Law Group can help you make the most of your petition, ensure your debt repayment plan is fair, and put you in a good financial spot to start rebuilding your financial future.
To be eligible to file for Chapter 13 bankruptcy in Florida, your total unsecured and secured debts combined must be less than $2,750,000. Chapter 13 is available to any individual as well as those who are self-employed or alternatively managing a business that is unincorporated.
Individuals can be disqualified from their ability to file for bankruptcy under Chapter 13 if the debtor failed to arrive in court or follow specific instructions issued from the court in the past 180 days, though this rule is standard across all methods of filing for bankruptcy. Similarly, to file under Chapter 13 or any other bankruptcy Chapter, it will be required that the debtor has worked with an approved credit counselor to get the instructions and financial plan needed to continue with their Chapter 13 bankruptcy payback plan. This rule is nullified if there is an emergency and your appointed trustee provides proof negating these needs.
The first step of filing for Chapter 13 bankruptcy entails the actual petition filing with bankruptcy courts. This will be near their home or place of residence. Unless otherwise instructed by the court, it is also required that you file schedules detailing a list of your assets as well as liabilities, a schedule following any of your budgetary items on a monthly basis, as well as a schedule detailing any unexpired leases or similar ongoing contracts. You will also need to file a statement detailing the state of your financial affairs.
Additional forms you will need to complete include documentation detailing all of the creditors seeking repayment as well as details about the specifics in their claims, information regarding your own monthly income as well as its source and frequency of payment, information about the debtor’s property, and also a specific budget calculating the debtor’s typical monthly expenses they need to live.
After you file for bankruptcy under Chapter 13, trustees will meet with any named creditors, which typically occurs anywhere from 21 to 50 days after the initial filing. Law regulates that this meeting cannot happen any later than 60 days after the initial filing. During this meeting, the debtor will need to answer any financial questions the trustee or creditors have and establish terms for the repayment. After this meeting, a court date will be set, and the repayment plan will be finalized.
It is possible for individuals to file for Chapter 13 as a means to avoid foreclosure on their homes. With an automatic stay available, this can call for an immediate halt on any foreclosure proceedings the moment the bankruptcy is filed. The debtor must continue to make repayments on the home, however, or else the foreclosure is reactivated and the stay nullified.
It is possible to file for bankruptcy without legal consultation, but a Clermont Chapter 13 bankruptcy attorney is often an important aid when trying to navigate the specifics of Chapter 13 law. If you are facing bankruptcy, you are likely under additional stress and trying to bring in as much income as possible, meaning it’s difficult to take the time and energy to file for bankruptcy needs when you are tired from work or taking on new projects to take on financial opportunities to help remedy the situation.
The expertise of a Clermont bankruptcy attorney can ensure you do not make major mistakes in the process of filing and also help capitalize on opportunities the law presents to gain options that are sure to assist you in rebuilding your financial life.
Badgley Law Group is standing by to assist you in understanding the many rules and regulations of filing for bankruptcy, and you can be sure that we will fight for the repayment plan that you can afford.
A: When repaying through Chapter 13, you will be required to pay either the monetary number asked of from your creditors they would have demanded from a Chapter 7 bankruptcy filing or, alternatively, a larger portion of what disposable income you have based on your monthly budget.
A: It is possible to receive a discharge on any debt amount you were unable to pay over your three-to-five-year payment plan, especially if payments were consistent from the debtor’s end over this period. Under Chapter 13, personal assets like your car or even your home are also offered more protection.
A: The most important thing to remember when dealing with a Chapter 13 bankruptcy is to find ways to be financially stable. Be sure to hold a strict budget and pay all bills on time. Also, avoid creating new debts and relay any new information to your legal team. Having an experienced attorney on your side is vital in ensuring you get the best result for you.
A: Chapter 13 bankruptcy filings are less successful than Chapter 7, with only around a 33% success rate. The majority of successful filings end up being 5-year plans as well, though it is good to remember that some of these failings happen when new life events occur over those five years, from the birth of a child to a major medical bill and other unpredictable costs.
If you are ready to take back your finances and file for Chapter 13 bankruptcy in Clermont, FL, Badgley Law Group is standing by to help you take back your life. Our expertise offers a nuanced and helpful approach to your case, and we bring care and understanding to not only help you navigate the details but make filing for bankruptcy less frightening. Our team of expert attorneys is ready to help you find the best possible outcome in your bankruptcy filing and preserve all of your rights during the process. Contact us today, and schedule a consultation with a Clermont bankruptcy attorney.