If you are struggling to stay on top of your debt, you may be wondering whether or not Chapter 13 bankruptcy is right for you. Depending on the amount of debt that you owe, as well as your ability to repay said debt, Chapter 13 bankruptcy may be the most effective debt relief solution for you; however, it is important for you to have all of the facts before making such a big decision.

Review the answers to some of the most common asked questions about Chapter 13 bankruptcy below, or contact my firm at (813) 223-4821 to set up a free and confidential consultation with a Tampa bankruptcy lawyer.

How long does the Chapter 13 bankruptcy process take?

Unlike Chapter 7 bankruptcy, which allows for a more instantaneous discharge of debt, Chapter 13 bankruptcy would require you to reorganize your debts and come up with a reasonable repayment plan.

This would give you the opportunity to pay back your creditors over the next three to five years without the fear of litigation. At the end of your bankruptcy, the court may also discharge all remaining debts.

Can anyone file for Chapter 13 bankruptcy?

The short answer to this question is no. In order to qualify for Chapter 13 bankruptcy, you will need to show the court that you have enough disposable income to fund your repayment plan—since you would be required to pay back certain debts in full. Similarly, you would not qualify for Chapter 13 if you have too much debt. Per current laws, you cannot have more than $1,149,525.00 in secured debt.

What happens if I fail to make my payments during Chapter 13?

When you make the decision to file for Chapter 13, you are essentially promising to repay a significant portion of your debt over a three to five-year period of time. If you fail to make your monthly payments, or stray away from the payment agreement, the bankruptcy court may dismiss your case entirely. Your case may also be converted into a Chapter 7 bankruptcy, allowing the court to liquidate certain assets.

How much of my debt will I have to repay?

When you file for Chapter 13 bankruptcy, you will be expected to repay certain debts in full. For example, you must pay 100% of your bankruptcy fees, child and spousal support arrears, mortgage debt (if you wish you keep your home) and other priority debts. When it comes to unsecured debts, however, you could pay anywhere between 0% and 100%—depending on a number of different factors.

Still have questions about Chapter 13 bankruptcy?

Chapter 13 bankruptcy is a complex financial process that typically requires the assistance of an experienced legal professional. For this reason, you should not hesitate to discuss the specific nature of your case with a Tampa bankruptcy attorney from Dion R. Hancock, P.A. if you have considered filing.

My firm has helped countless individuals and families over the years, so you can trust that your future is in good hands when you turn to us for help. Call now to schedule your free consultation!