How Chapter 13 Bankruptcy Can Save Your Home & Your Wallet

Chapter 13 bankruptcy is the type of bankruptcy that allows individuals with regular income to repay their debts over a period of three to five years. During this time, you will make monthly payments to a court-appointed trustee, who will then distribute the money to your creditors. A house foreclosure can be a devastating experience. It can lead to financial ruin, stress, and even homelessness. If you’re worried about losing your home or property, there are a few ways to help you keep it. One option you can consider when you filing  Bankruptcy under chapter 13.

How Bankruptcy Under Chapter 13 Works

The initial action to take when considering Chapter 13 bankruptcies are to consult with a bankruptcy lawyer or attorneys. They will help you look at your money situation and see if Chapter 13 is the best choice for you. After you decide to go ahead, your lawyer will assist you in getting all the paperwork ready. These documents will include a list of your assets and debts, plus a repayment plan for your creditors.

Once your bankruptcy petition is filed, you will be granted an automatic stay. This means that your creditors will be prohibited from taking any collection action against you, including foreclosing on your home. The court will then review your repayment plan. If the court approves your plan, you will be required to make monthly payments to the trustee for the duration of your bankruptcy case. At the end of your bankruptcy case, you will be granted a discharge. This means that your eligible debts will be eliminated.

What Debts Can Be Eliminated in Chapter 13 Bankruptcy

When you filing Bankruptcy under chapter 13, you can get rid of a lot of unsecured debts like credit card bills, medical expenses, and personal loans. But keep in mind that some debts, like student loans, child support, and alimony, still need to be paid.

How Chapter 13 Bankruptcies Can Stop Foreclosure

You may be able to find the much-needed relief you require through the Bankruptcy under Chapter 13 process if you are facing foreclosure. By stopping your creditors from taking collection action against you, Chapter 13 can give you the time and space you need to get your finances back on track.

Additionally, Chapter 13 can help you lower your mortgage payments. If your repayment plan modifies your mortgage, you might find yourself paying a smaller amount each month. Bankruptcy cases under Chapter 13 typically take three to five years to complete. However, the length of your case may vary depending on your individual circumstances.

The Benefits of Chapter-13 Bankruptcy

There are many benefits to applying for Chapter 13 bankruptcies. These advantages include:

• Stopping foreclosure
• Eliminating debt
• Reducing mortgage payments
• Getting a fresh start

Filing of Chapter-13 Bankruptcy in Florida

The process of filing bankruptcy under Chapter 13 in Florida involves several steps. First, you’ll need to meet with an experienced Chapter 13 attorney to evaluate your financial situation and determine which type of bankruptcy is right for you. Your attorney will help you prepare your assets, debts, income, and expenses documents.

Once your case is filed, the court will issue the automatic stay, stopping foreclosure and other collection efforts. You will then propose a repayment plan that outlines how you intend to pay back your creditors over the next three to five years. The repayment plan must be approved by the court, after which you’ll begin making regular payments to a bankruptcy trustee.

SunCoast Law: Your Chapter 13 Bankruptcy Attorney

If you are facing foreclosure or are considering filing for bankruptcy under Chapter 13 , SunCoast Law can help. Our skilled bankruptcy lawyers have successfully guided thousands of people in regaining control of their finances.

We provide a free consultation to go over your situation and see if Chapter 13 is the best choice for you.

Conclusion

Chapter 13 bankruptcy can be a powerful tool for stopping foreclosure and eliminating debt. If you are facing financial hardship, Chapter 13 may be the right option for you. SunCoast Law is here to help you every step of the way. Contact us today to schedule a free consultation.