West Palm Beach Chapter 13 Bankruptcy Lawyer
Save Your Home, Save Your Car, with Chapter 13 Bankruptcy Help
Are you falling behind in your monthly bill payments and facing a foreclosure on your home or repossession of your car? In a Chapter 13 bankruptcy, you can create a plan to get current and pay off your debts conveniently over a three or five-year period, as well as have some of your debts adjusted or completely discharged. What’s more, you can prevent a foreclosure or repossession from occurring, and keep your valuable property. Learn more about Chapter 13 bankruptcy below, and call our West Palm Beach & Port St. Lucie Chapter 13 bankruptcy lawyers for immediate assistance.
How Chapter 13 Works
Chapter 13 brings all of your creditors together into one payment plan, which enables you to make one simple, affordable monthly payment to pay off all your debts. A Chapter 13 plan can last either three or five years, depending upon your income level and how much time you will need to complete the plan. A Chapter 13 is often called a “wage earner’s plan,” because it is well-suited to consumers who have a steady job but need additional time and help to get on top of their finances. Chapter 13 does not have the income-based means test like Chapter 7, so it is easier to qualify for Chapter 13, and you don’t have to worry that your income level will stand in your way.
When you file Chapter 13, the court implements an automatic stay on any debt collection activity. This includes foreclosures, repossessions and lawsuits. Importantly, the automatic stay can also apply to any litigation against a friend or family member who may have co-signed a loan for you.
If you are behind on home or car payments, those missed payments can be rolled into your Chapter 13 plan, bringing you current on your loans. As long as you stay current going forward, you can keep your car and keep your home.
When your car, home or other property is sold to satisfy a debt, you can still be liable for any deficiency. It is not uncommon for a Florida consumer to owe more on a car or home than the property is actually worth on the current market, so it is a very real threat that you could lose your valuable property and still be left facing a lawsuit for the amount you still owe after the property is sold. Chapter 13 can save your property, save you from a deficiency judgment, and save you from having a foreclosure or repossession on your credit report.
Chapter 13 Debt Adjustment is not Debt Consolidation
You may think that a Chapter 13 payment plan sounds a lot like debt consolidation, and you may be wondering if debt consolidation is preferable to bankruptcy. While every situation is unique, Chapter 13 is frequently faster and more effective than debt consolidation. Also, savings from a Chapter 13 debt adjustment are not taxable, but savings from a debt consolidation are. Most importantly, Chapter 13 protects your property from being lost to the creditor, while loan consolidations often require you to put up additional collateral or security, putting even more of your property at risk than before the consolidation!
Put an immediate stop to creditor harassment and attempts to take your home or car while you figure out a plan that makes sense for you and puts you back in control of your finances in just a few short years. Schedule your free consultation today.