A Chapter 13 bankruptcy is a type of bankruptcy filing that an individual who has regular income can choose to file. The main difference between a Chapter 7 bankruptcy petition and a Chapter 13 bankruptcy petition is that a Chapter 13 bankruptcy petition requires a repayment plan between three and five years. Additionally in a Chapter 13 bankruptcy a debtor is allowed to keep all their assets without the court liquidating them.
During the course of the three to five year plan a debtor can play catch up on their mortgage payments, hoa payments, and car payments. Also in a Chapter 13 bankruptcy , in Florida, a debtor’s debts will be consolidated so that they will only be required to make one monthly payment for those debts.
Debtors who don’t have a mortgage or are not behind on their mortgage can consolidate their unsecured debt so as to make one monthly payment on their debt for the period of the plan. Typically the monthly payment will be only a small percentage of what the debt is.
If you are thinking about filing for Chapter 7 or Chapter 13 bankruptcy in South Florida and would like to speak with a bankruptcy lawyer then please give Shmucher Law, PL a call at 954.309.5559 or 305.741.5553. Our offices are conveniently located in Boca Raton, Fort Lauderdale, Plantation, Miami and Sunrise Florida.