Chapter 13 Bankruptcy

Sarasota, Florida Chapter 13 Bankruptcy Lawyers

Individuals who are not eligible to file under Chapter 7 must file for bankruptcy under the terms of Chapter 13. In general, Chapter 13 bankruptcy involves a reorganization of unsecured debt. If you file for Chapter 13 bankruptcy, you will be required to submit a repayment plan to the court. If approved, you will be expected to pay back 80% to 100% of what you owe over a 3 to 5 year period of time.

While Chapter 13 is more expensive than Chapter 7 in that it does not discharge as much debt, most people who file for Chapter 13 keep their homes and cars without having to liquidate property. At the Parker Law Group, our attorneys help people gather necessary financial information in preparing a debt restructuring plan for approval by their creditors.

If you earn too much to file for Chapter 7, contact bankruptcy law attorneys at the Parker Law Group to learn more about filing for Chapter 13 and how we can help you.

Restructuring Debt Under Chapter 13 - Your Repayment Plan

Under Chapter 13, the court must approve any proposed repayment plan. Even if your creditors are unhappy with its terms, once the court approves the plan, creditors can't force you to pay more than what has been sanctioned by the court. However, if you fail to adhere to the terms of your Chapter 13 bankruptcy plan, your bank could foreclose on your home and repossess some of your property.

Our attorneys carefully review your financial situation, taking into account monthly disposal income, expenses, and savings. We are especially careful to craft repayment plans that ensure you have the resources available to comply with its terms. If your mortgage is a variable rate or interest only loan, we can help you apply for a loan modification in order to reduce your monthly mortgage payments.

Can One Spouse File for Bankruptcy?

If a spouse has unsecured debt in his or her name only, he or she can file for Chapter 13 bankruptcy without requiring the other spouse to file, too. However, the court will take into consideration the available household income when evaluating repayment plans. Additionally, the credit score and history of the non-filing spouse should not be affected by the filing spouse's Chapter 13.

If a non-filing spouse applies for credit in his or her name only, the filing spouse's bankruptcy should not appear. If both spouses apply for a joint line of credit however, the filing spouse's bankruptcy could impact their eligibility for the loan or credit card.

Contact Chapter 13 Bankruptcy Attorneys at the Parker Law Group

We can help you get back on your financial feet again and avoid foreclosure. To learn more about filing for Chapter 13 bankruptcy, contact the Parker Law Group today to schedule an appointment.