West Palm Beach Chapter 13 Bankruptcy Attorney
For individuals who are facing large amounts of debt, the future can feel uncertain at best. More commonly, such individuals may feel hopeless and even frightened about what the coming days, weeks, months, and years will hold. For individuals who aren’t sure where to turn, filing for bankruptcy may be an option. A Chapter 13 bankruptcy can provide debtors with the debt relief they need, while also offering a sense of control. To learn more about filing for Chapter 13 bankruptcy, please reach out to our West Palm Beach Chapter 13 bankruptcy attorneys at the law office of Bruce S. Rosenwater & Associates, P.A. today.
The Basics of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is one of two common bankruptcy types for individuals – the other is Chapter 7 bankruptcy. In contrast to a Chapter 7 bankruptcy where many of a debtor’s debts are erased and a debtor’s assets are liquidated in order to pay back a portion of debts, in a Chapter 13 bankruptcy, the debtor will work with creditors to create a three-to-five-year repayment plan.
In order to file for a Chapter 13 bankruptcy, a debtor must meet certain requirements. First, a debtor must be an individual – businesses are not eligible for Chapter 13 bankruptcy actions; second, the debtor must prove that they have some form of steady income that they can use to pay back a portion of their debts as part of their repayment plan; and, third, the debtor cannot have secured or unsecured debts that exceed a certain amount.
Advantages of a Chapter 13 Bankruptcy
Filing for bankruptcy is not ideal. In fact, bankruptcy should not be pursued until other options for financial relief or restructuring, such as debt consolidation or negotiating with creditors about loan terms, have been exhausted. That being said, if filing for bankruptcy is your best option, then filing for a Chapter 13 bankruptcy is usually preferable over a Chapter 7 bankruptcy. Advantages of a Chapter 13 bankruptcy include:
- Ability to save a home from foreclosure in most cases;
- Allowing the debtor to keep most of their assets; and
- Discharge of debts that the debtors cannot pay in full by the end of the repayment plan.
Additionally, just like other types of bankruptcy filings, filing for a Chapter 13 bankruptcy will initiate the automatic stay, which immediately prevents creditors from collecting on debt while the bankruptcy action is pending.
Call Our West Palm Beach Chapter 13 Bankruptcy Attorneys Today
Before you file for a bankruptcy action, it’s strongly advised that you seek the counsel of a knowledgeable bankruptcy attorney who can guide you through your options and advise you on what steps to take to protect your best interests. At the law office of Bruce S. Rosenwater & Associates, P.A., our experienced Chapter 13 bankruptcy lawyers can help. We know how burdensome and worrisome facing large amounts of debt is, and we want to assist you in seeking relief. Please reach out to us by phone or online today to get the answers you need.