Bankruptcy is a complicated subject. Not only is the process of filing for bankruptcy a confusing one, but it also carries a lot of emotional weight for many people. Despite this, a bankruptcy filing may be the best option for you, your family, and your financial future.
Before you file for bankruptcy in Orlando, it’s important to understand that you have options. All bankruptcy cases are not the same, so it’s beneficial to know your options before you begin the process. Understanding the intricacies of these cases allows you to make more informed, empowered decisions regarding your finances.
Chapter 13 bankruptcy is one route you can take, and it may be the best option for you. It is a distinct process with its own advantages and disadvantages, just like any other form of bankruptcy filing. If you haven’t considered filing for bankruptcy this way, it’s important to talk to an attorney to see if it’s right for you.
Here at Badgley Law Firm, our team has many decades of combined experience in this niche form of law. Not all attorneys can help with this form of bankruptcy filing, but our attorneys have many years of experience helping clients to file for Chapter 13 bankruptcy and are ready to help. We understand the nuances of bankruptcy law, and we are here to help you explore your options and make the best choice for yourself and for your family.
When it comes to bankruptcy filing, it’s important to find legal representation that understands your needs. With both our expertise in the field and lengthy history, our team at Badgley Law Firm is the best group to help you with this process. We are compassionate and judgment-free when it comes to bankruptcy law yet remain tenacious and protective in the courtroom. We are here to protect you and help you get through this low point.
Chapter 13 bankruptcy is a common option for those who have accumulated lots of debt and are being harassed by creditors. When many people think of bankruptcy, they think of giving away all their assets and possessions. Fortunately, Chapter 13 bankruptcy does not require you to do this yet still allows you to end harassing phone calls and debt collection.
Chapter 13 bankruptcy is similar to a restructuring. With the help of an attorney and a trustee, you will develop a payment plan for all or part of your debt. You will have to keep up with these monthly payments until your debt is paid down to the agreed-upon point. This often takes 3-5 years to complete. As an upside of this process, you get to retain many large assets during this time. You do not have to foreclose on your home, which is a significant advantage for many families.
Filing a Chapter 13 bankruptcy in Florida is a viable solution for keeping a home out of foreclosure, lowering car payments, getting control over high monthly debt payments, and generally getting finances in control. It is important to find an experienced bankruptcy lawyer who can help through the process. At Badgley Law Group, our attorneys represent clients in Orlando and throughout central Florida in Chapter 13 bankruptcy and other debt-relief solutions. We will take the time to look over your financial information with you and help you determine whether Chapter 13 bankruptcy is the right fit for you. We have a wealth of experience helping people just like you find the financial solutions to get out from under serious debt problems.
Chapter 13 is different from the more commonly used Chapter 7. Among other differences, a Chapter 13 is the type of bankruptcy used by individuals and families who have high (higher than the median income in the State of Florida) incomes. It is also available to those at any income level who want to work out a deal with their creditors to keep their property. It can sometimes be referred to as the Wage Earners plan. An experienced bankruptcy attorney knows how to use chapter 13 bankruptcy to restructure and modify certain debts to make them easier to repay. Chapter 13 is not available to companies, only individuals.
Think of Chapter 13 as a consolidation loan where the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. To be eligible to file for Chapter 13 bankruptcy, an individual must have no more than $394,725 in unsecured debt, such as credit card bills or personal loans. They also can have no more than $1,184,200 in secured debts, which includes mortgages and car loans. These figures adjust periodically to reflect changes in the consumer price index.
All types of bankruptcy have their own advantages and disadvantages. The filing process is simply an opportunity for you to determine which benefits are right for your family and which drawbacks you are willing to handle to reap the benefits.
Some of the benefits of a Chapter 13 bankruptcy include:
Additionally, most forms of debt can be discharged in a Chapter 13 bankruptcy, including credit card debt, judgments, loan accounts, personal guarantees, and even divorce property settlements. A Chapter 13 bankruptcy can also be used to get relief from unmanageable student loan debt and to arrange a payment plan with the IRS, even though most tax debts and student loans are not dischargeable in Chapter 13 bankruptcy.
If you are considering filing for Chapter 13 bankruptcy in Orlando, it’s important that you understand the drawbacks as well as the benefits. For some families, the disadvantages are not worth it, even in exchange for the benefits.
The main disadvantage of Chapter 13 bankruptcy is the length of time it takes to resolve. Chapter 13 bankruptcy is a gradual process, as it relies on you to pay down your debt over time. Because of this, it’s not the clean break or restart that many people associate with bankruptcy. You will be responsible for your payments for 3-5 years, which is still a significant responsibility. It’s also important to reiterate that not everyone is eligible. Those without steady income will not have the opportunity to file for Chapter 13 bankruptcy.
Many people worry about their credit score when they file for bankruptcy. This is a valid concern, as the process does significantly affect your credit. When you file a common Chapter 7 bankruptcy, you begin from scratch with your credit. It may be difficult to get approved for credit cards or lines of credit, and your options will likely have significant interest rates and fees associated with them.
With Chapter 13 bankruptcy, you may find that your situation is the same when it comes to opening lines of credit or credit cards. However, many people find that their credit bounces back more quickly when they file for Chapter 13 bankruptcy. Your monthly payments do show a level of responsibility that may reflect positively on your credit standing.
Finally, Chapter 13 bankruptcy filings are removed from your credit report after seven years. This is compared to the ten years it takes for Chapter 7. This means that the credit consequences of your filing do not last as long, nor are they as severe. However, it’s still important to acknowledge the effect that this bankruptcy filing will have on your life. There will be consequences for your credit no matter what form of bankruptcy you file. Despite this, many people considering bankruptcy already do not have high credit anyway because of their debts. The process may end up improving your standing in the long run.
It’s always important to know that you have options besides Chapter 13 bankruptcy. Chapter 7 bankruptcy is another common option. Though you lose most of your assets during a Chapter 7 bankruptcy filing, you do get a clean break and fresh start. The process is also much shorter, and your debt issues may be resolved in as little as three months. Some families find that this is a fair trade-off for them.
If you are considering bankruptcy of any kind, it’s important to speak with a qualified Orlando bankruptcy attorney. Without legal help, it’s difficult to understand what the best route is for your bankruptcy process. What’s more, you may not be aware of all your options without the help of a legal representative. We can help you to organize your affairs and select a process that’s right for your family.
Obtaining Chapter 13 bankruptcy relief can be a complex task. If you feel that you are in need of the benefits and solutions that are offered by an affordable Orlando chapter 13 bankruptcy lawyer, we can help. Contact us today for a free consultation to explore this solution!