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Chapter 13 Bankruptcy Archives

Chapter 13 bankruptcy and other filings up in May 2017

Deciding to file for bankruptcy is a decision made by some Florida residents and others throughout the nation to get a fresh start. There are two main options for consumers seeking relief: Chapter 7 or Chapter 13. While Chapter 7 bankruptcy filings primarily deal with the discharge of certain debts, Chapter 13 bankruptcy is focused on debt consolidation and repayment plans. According to recent reports, total filings for the country have increased since last month as well as the previous year.

Millions lost in phony Florida debt consolidation companies

Many consumers in Florida have experienced financial difficulties in the past few years since the economic downturn. Certain residents considered debt consolidation loans as a means to improve their financial position and repair their credit. Unfortunately, three men from South Florida created even more problems for the people that were already in financial trouble through fake debt relief companies.

Chapter 7 or Chapter 13 bankruptcy -- which debts will remain?

Florida consumers who are facing overwhelming debt may be researching potential remedies for their dilemmas. When considering bankruptcy, one of the common questions relates to which debts cannot be discharged. Although there are specific requirements to determine whether a person qualifies for Chapter 7 or Chapter 13 bankruptcy, the way debts are treated differ considerably between the two options.

Chapter 13 bankruptcy one option for debtors

Bankruptcy laws in some form or fashion have been in place in the United States for over 200 years. Our Constitution even addresses the subject of bankruptcy, and Congress has passed the Bankruptcy Code. Florida and every other state has at least one judicial district established for bankruptcy. While the law details six basic types of bankruptcy, two types are more common for individuals in the midst of financial difficulties. These are Chapter 7 bankruptcy and Chapter 13 bankruptcy.

Qualifying for a hardship discharge in a Chapter 13 bankruptcy

Sometimes Florida residents experience catastrophic events that prevent them from being able to meet their financial obligations. That is usually when they file for either Chapter 7 or Chapter 13 bankruptcy. However, what happens if a tragedy strikes while an individual is already in a debt repayment plan?

Chapter 13 bankruptcy might give you the chance to keep your home

Getting behind on bills can cause emotional and financial distress for any Florida resident. The situation can be made worse if your lender is threatening to take your home from you through a foreclosure action. If you qualify, Chapter 13 bankruptcy could help you keep your home.

Is a mortgage possible during or after a Chapter 13 bankruptcy?

Many Florida residents believe that their chances of getting a mortgage are close to zero when their financial situations require them to seek protection from a bankruptcy court. Fortunately, bankruptcy does not have the same stigma that it did in decades past. It might give them hope to know that it is possible to obtain a mortgage during or after a Chapter 13 bankruptcy, depending on the circumstances.

Avoid repossession and get current in a Chapter 13 bankruptcy

The media and debt relief advertisements make getting out of debt sound simple -- stop spending, work longer hours and sell stuff you do not need in order to pay down debt. Like numerous other Florida residents who are in financial distress, you might be at the point where this type of advice is too little too late. You might now be at the point where you are facing repossession of your car or another secured asset because you are behind on the payments. Filing for Chapter 13 bankruptcy could help stop repossession efforts and give you the time to get current on your payments.

Court rules that debt repayment plan can strip junior lien

When many Florida residents divorce, they have both senior and junior liens on the marital home for which both parties are legally responsible. If one ex-spouse files for Chapter 13 bankruptcy, he or she might wish to strip the junior lien as part of a debt repayment plan -- essentially treating it as an unsecured debt that will be given the same priority as any other unsecured debt. A bankruptcy court on the East Coast recently determined that making this proposal is allowed even when the other ex-spouse, who is not part of the bankruptcy, is still liable for the debt.

Should you file for Chapter 13 bankruptcy instead of Chapter 7?

The simple answer to that question is that it depends on your circumstances. The primary reason that many Florida residents file for Chapter 13 bankruptcy (reorganization) over a Chapter 7 (liquidation) is that they want to retain as much of their property as possible that would not necessarily be considered exempt under a Chapter 7. It also might be possible to discharge debts that would not otherwise be eligible under the other chapter.

Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-896-3077
Fax: 407-896-3041

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