Chapter 13

Chapter 13 bankruptcy is known as wage earners bankruptcy and allows you to adjust your debts in accordance with a payment plan that last 3 to 5 years.  The Chapter 13 plan requires the filer to repay all or part of their debts over 3 years if their monthly income is less than the state median income and over 5 years if you earn more per month than the state median income. 

A significant advantage of a Chapter 13 bankruptcy is that it allows you to stop foreclosure on your home and make up any delinquent mortgage payments over a period of 3 to 5 years.  It may also allow you to keep your property and can protect co-debtors who might also be liable for your debts.  A Chapter 13 bankruptcy plan can lower your payments on secured debts and may allow you to write off all or portions of unsecured debts.  The plan may also allow you to consolidate your debt resulting in one monthly payment to the trustee rather than dealing with multiple creditors.  However, like Chapter 7, there are limitations on who can file for Chapter 13 bankruptcy relief.

Qualifying for Chapter 13: 

Any employed individual qualifies for Chapter 13 bankruptcy relief so long as their unsecured debts are less than $360,475 and secured debts are less than $1,081,400. (Secured debts are debts upon which your property has been put up as collateral such as a mortgage; unsecured debts are not secured by collateral such as credit card debt.)  If your debts do not exceed these standards, you have taken the required credit counseling course and have not had a bankruptcy petition dismissed within 180 days of filing for Chapter 13 protection, you are eligible to seek relief under this chapter.  Let Matthew C. Bothwell, P.A. assist you in the bankruptcy process.  Call us today at (904) 551-6640 or email Matthew C. Bothwell today.