If you are like others in Florida who are looking to regain control of their finances, then you may have considered a number of debt relief options. One such option is filing for bankruptcy. However, it can be difficult to know which type of filing is best for your situation. At The Law Offices of George Castrataro, P.A., we are often asked how to know if Chapter 13 is the right option for your needs. In this post, we will discuss the advantages of seeking Chapter 13 bankruptcy protection.
If your income is greater than the state’s median, then you may be ineligible to declare Chapter 7 bankruptcy. However, you do not have to qualify under the means test to be eligible for Chapter 13 bankruptcy. Instead, your secured debts and unsecured debts must be under certain amounts, according to the U.S. Courts. Additionally, you must have a certain amount of disposable income that can be used to repay your debts when filing for Chapter 13 bankruptcy.
Chapter 13 bankruptcy does not require you to liquidate your assets like a Chapter 7 filing. As such, you will not necessarily lose your assets when seeking this type of protection. However, you will have to propose a repayment plan, and stick to that plan for its duration. Chapter 13 repayment plans are typically stretched over a three or five-year period.
Additionally, filing for Chapter 13 allows you the opportunity to keep your home, according to the U.S. Courts. This type of bankruptcy protection will stop foreclosure proceedings. In some cases, it may also help remedy delinquent mortgage payments. If you are able to make your regular mortgage payments as they come due, then you may be able to save your home.
For more information about this type of debt relief option, please visit our bankruptcy law page.