Chapter 13 Bankruptcy
Chapter 13 Bankruptcy West Palm Beach
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
This chapter discusses six aspects of a chapter 13 proceeding: the advantages of choosing chapter 13, the chapter 13 eligibility requirements, how a chapter 13 proceeding works, what may be included in chapter 13 repayment plan and how it is confirmed, making the plan work, and the special chapter 13 discharge.
Advantages of Chapter 13
Chapter 13 offers individuals a number of advantages over liquidation under chapter 7. Perhaps most significantly, chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time. Another advantage of chapter 13 is that it allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan. Doing this may lower the payments. Chapter 13 also has a special provision that protects third parties who are liable with the debtor on "consumer debts." This provision may protect co-signers. Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.
Why Should You Choose Michael A. Kaufman, P.A.?
- Evening hours
- Weekend hours
- Hands on personal attention
- State & federal trial experience
Request an Appointment
Message Sent. Thank you for contacting us. We will be in touch with you shortly.
Approachable at any given time, understanding, compassionate, reassuring, and makes difficult humiliating situation feel a little better.
Excellent service during a very difficult time for us. Highly recommend.
I give Mr. Kaufman a 5 star rating because I am very impressed with his over all handling of my case which was very efficient. He is very confident and informative, always let me know what to expect next, I never felt like I was left out in the dark. In fact, as soon as I talked to him I knew he was going to take care of everything and that was a load off my mind. His easy going manner made it easy to ask questions and I might add, he knew the answers to everything I asked. Thank you Mr. Kaufman for taking care of my case in such a way that you made it look easy, which I never would have believed when I began.
I give Mr. Kaufman a 5 star rating because not only is he professional and specialize in everything, he is considerate, helpful, reassuring and compassionate. Thanks for being the best at what you do.