Chapter 13 bankruptcy is basically a reorganization of your debts in which some debts are repaid in full, some are repaid partially and some aren't repaid at all.
I'm Joel Gross, a bankruptcy lawyer in Clermont, Florida. If you can't afford to pay your debts, I offer a free initial consultation to evaluate your situation and determine if Chapter 13 bankruptcy would be a solution for your debt problems.
There are four main reasons why Chapter 13 bankruptcy may be a better option for you than Chapter 7 bankruptcy:
If you have a second mortgage on your home, and you are underwater on your first mortgage, you can also strip the lien from the second mortgage, making it an unsecured debt.
Secured debts, such as your home, have to be repaid in full. If you have a car, motorcycle or boat that you owe money on, you may be able to reduce the amount you owe to the current value of the vehicle. For unsecured debts such as credit card bills, hospital bills and payday loans, you pay only what you can afford, usually it's a small percentage.
Chapter 13 debt reorganization can last from three to five years. Here are some examples Chapter 13 payment plans for unsecured debts:
|Pay off this much debt:||For as low as this monthly payment*|
|$15,000 in debt||$28 per month for five years|
|$20,000 in debt||$37 per month for five years|
|$30,000 in debt||$55 per month for five years|
|$50,000 in debt||$92 per month for five years|
* Represents a 10 percent Chapter 13 plan filed in the Orlando division, Middle District of Florida under Title 11 U.S.C. 1301. Results may vary depending on your individual circumstances. Creditor action may be temporary. Relief may not be granted under every circumstance.
To schedule a no-cost and no-obligation consultation with me, Clermont Chapter 13 bankruptcy attorney Joel Gross, call 352-536-6288 or send an email. Evening and weekend appointments are offered for those who cannot meet during business hours. Spanish-speaking service is available.