Chapter 13 Bankruptcy
This form of bankruptcy, also known as “wage-earners bankruptcy,” is well-suited for individuals who earn a decent income. Under a Chapter 13 bankruptcy, individuals make scheduled payments to creditors over a three-to-five year period in an interest-free plan. Most Chapter 13 bankruptcies are filed to prevent foreclosure on a home or so that the filer can keep their personal assets. One of the major considerations in a Chapter 13 bankruptcy is the amount of income that the debtor makes. You must able to have enough income after expenses to realistically repay your debt according to the schedule determined by the court. Our legal team of bankruptcy attorneys is intimately familiar with the process involved with Chapter 13 filings, and we know how to protect your rights along the way.
By choosing to file a Chapter 13 bankruptcy, you may be able to save investment properties that would have been lost in a Chapter 7 claim. Here at Crary Buchanan, we walk you through the various benefits of filing a Chapter 13 claim and we work hard to save you time and money along the way. The Florida Bankruptcy Court states that a debtor may not have more than $1,081,400 in secured debt and $360,475 in unsecured debt if they are considering a Chapter 13 bankruptcy. Regardless of your situation, our firm will help you find the financial relief you desperately need and deserve.
Chapter 7 Bankruptcy
Also known as the “liquidation” bankruptcy, a Chapter 7 bankruptcy provides protection from creditor harassment and financial relief from many of the debts that overwhelm individuals. This is the most popular form of bankruptcy available because it allows individuals to discharge credit card debt, medical bills, unsecured loans and more without having to repay a single dime. In addition, any creditor lawsuits or wage garnishments must immediately cease after an individual files for Chapter 7 bankruptcy.
If you are considering this widely popular and highly efficient form of bankruptcy, it is wise to contact a lawyer before proceeding. In order to qualify for this type of bankruptcy protection in Florida, you must be able to pass a means test. A means test evaluates your income compared to the median income level in your area, and you must make less than the median income to qualify for Chapter 7 protection. Even if you know that you earn less than the median income, you will still have to undergo a means test to determine how much disposable income you have.
One of the benefits of filing under Chapter 7 bankruptcy is that you will be able to keep all of your exempt assets. While these assets differ from state to state, your home, vehicle, and other personal assets are all protected by the State of Florida constitution.