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Chapter 13 Bankruptcy Cases

Repaying Your Debts Over Time

If you can't catch up on your debts, Chapter 13 bankruptcy may offer the relief you need. It provides immediate protection from creditors, including foreclosure, and lets you spread out your debts over several years without penalties or interest.

The Law Office of Keith Will Wynne, Esq. has helped hundreds of people in the Hillsborough County find debt relief through Chapter 13 bankruptcy.

Chapter 13 Repayment Plans

There are several reasons why you would want to be in a Chapter 13 bankruptcy.

  1. You are behind on your mortgage payment and cannot afford to pay what you are behind in one payment. You can afford the normal mortgage payment, you just can’t pay what’s past due in one payment-or the bank won’t accept any more payments. A chapter 13 can allow you to pay the normal mortgage payment, and pay back what you are behind over 36-60 months (depending on your gross income).
  2. You are behind on your normal monthly mortgage payment, and you cannot afford the monthly payment, but 31% of your gross income is an affordable payment. A Chapter 13 bankruptcy will allow you to devote 31% of your gross income to your mortgage-including property taxes, insurance and whatever you are behind. The court will then will order you and your bank to mediation within 6 months to attempt a mortgage modification.
  3. You have assets (any property-whether real estate, vehicles, or even a stamp collection) that are worth more than you are allowed to “exempt” in bankruptcy. See What property can I Keep. A Chapter 13 bankruptcy will allow you to keep all of your property, provided you pay to your creditors the value of your assets over what you are allowed to exempt. You can pay that amount off over 36-60 months.
  4. Your income is too high to file a Chapter 7. This is based on the “means test”.

Many people are under the mistaken assumption that they will have to pay all of their debt back in a Chapter 13 bankruptcy. This is not true. Unsecured creditors (credit cards and personal loans not guaranteed by any collateral) are only entitled to receive exactly what they would receive under a Chapter 7 bankruptcy, and that is only if you have assets above the amount you are allowed to exempt.

Chapter 13 bankruptcy is sometimes called a wage earner's plan. Attorney Keith William Wynne will sit down with you to examine your income, assets, debts and household expenses. He will then present a plan to the Bankruptcy Court based on how much you can realistically afford to pay. You will make one fixed payment each month for 36 months or 60 months, depending on your income.

At the end of your plan, any remaining debt is discharged. Many people pay only a small percentage of their total debt in a Chapter 13 bankruptcy. Remember, you do not forfeit any assets in a Chapter 13 bankruptcy.

Freedom From Creditors

The immediate benefit of Chapter 13 bankruptcy is protection from creditors. It stops home foreclosure, repossession, wage garnishment, bank liens and the harassing phone calls and threatening letters. If you are behind on your mortgage or car payments, the payments you are behind can be paid over time as part of your repayment plan. There are many benefits of Chapter 13 bankruptcy, including "cramdown" of vehicle loans and protection for co-signers.

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Law Office of Keith Will Wynne, Esq. - Plant City Bankruptcy Lawyer

Plant City Office - 1001 E. Baker Street, Suite 101, Plant City, FL 33563. Phone: (813) 567-5894 | Local Phone: (813) 752-3100.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

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