Florida Debt Relief Attorney
Filing for bankruptcy under Chapter 13 may allow you to restructure debt, avoid foreclosure, and keep most of your belongings. As in a Chapter 7, Chapter 13 bankruptcy initiates an automatic stay preventing debt collectors from calling you or a bank from foreclosing on your house. While Chapter 13 is more expensive than Chapter 7, if you work and earn a steady monthly income, you have a greater chance of keeping your home and your cars while maintaining a stronger credit rating over time. At The Kramer Law Firm, we help clients file for Chapter 13 bankruptcy by assisting them in creating a repayment plan subject to approval by the Bankruptcy Court. We also discuss how homeowners can approach their bank in order to ask for a loan modification when a subprime mortgage or interest only mortgage creates additional financial burdens for them.
To learn how Chapter 13 bankruptcy can help you reorganize debt and avoid foreclosure on your home, contact the Orlando bankruptcy lawyers at the Kramer Law Firm to schedule an appointment and discuss your case.
How Chapter 13 Bankruptcy Works
Chapter 13 allows you to reorganize debt on credit cards, past due medical bills, certain kinds of loans, and other forms of unsecured debt. It may also be used to avoid foreclosure and bring delinquent mortgage payments current. Under the terms of Chapter 13, you will generally be required to repay 80-100% of what you owe creditors over a three to five year period. Our bankruptcy attorneys will prepare and submit a repayment plan to the Bankruptcy Court detailing how you intend to pay off debt and bring you mortgage current.
While creditors can review a plan and take issue with aspects of it, whether or not it is approved depends on the sole discretion of a Bankruptcy Judge. As a result, if your repayment plan is approved, you and your creditors must comply with its terms. A repayment plan can propose reduced interest rates and consolidate debt when doing so makes sense.
Avoiding Foreclosure through Chapter 13
As long as you can bring your mortgage current and continue regular monthly payments as scheduled, your bank cannot foreclose on your home. Unlike Chapter 7 where creditors may choose to foreclose on a home in order to recover money owed them, Chapter 13 is a restructuring of debt -- not an outright discharge of it. Consequently, Chapter 13 requires you to repay what you owe according a debt reorganization plan. As such, if you can continue making payments on your mortgage - regardless of whether your house is worth less than the mortgage you are paying on it - you will be able to keep your house.
Contact Orlando Bankruptcy Attorneys at the Kramer Law Firm
If you are unsure of whether Chapter 13 bankruptcy makes sense for you, contact the Orlando bankruptcy attorneys at the Kramer Law Firm today to schedule an appointment and discuss your case. We can evaluate your financial situation, your disposal income against your monthly debt, and determine what makes the most sense for you.
