Chapter 13 Bankruptcy South Bay

If you are feeling as though your debt is mounting and you need a way out, Chapter 13 bankruptcy could be an option for you. If an individual can hold a job, that person can make a plan to pay off the remaining debts over a 5 year period. If you fail to make a payment, however, you risk the dismissal of your claim and may be forced to convert your case to a Chapter 7 liquidation claim.

How It Works

Before you are able to file for bankruptcy, the state of Florida requires that you complete an individual financial management course. After the course is finished, you are then permitted to submit a petition that states that you want to file for a Chapter 13 bankruptcy. When you file the petition, you are also required to submit the following documentation: accounts of assets, liabilities, current income, expenditures, all financially-binding contracts, unexpired leases, and all other items regarding financial affairs. If you are married, Florida laws will permit you to file jointly but you are required to submit all the correct paperwork for each person involved.

Filing for a Chapter 13 bankruptcy with all the right paperwork is a complicated process for anyone to take care of. Working with your South Bay bankruptcy lawyer can help the process to run as efficiently as possible. After all paperwork is turned into the court, the judge will assign a trustee to take care of all of the details of your case. One of the first things that your trustee will do is to make sure that an "automatic stay" becomes effective almost immediately after giving your paperwork to the court. Sometime after this, the trustee will set a time for you to meet with all your creditors. During this meeting, you will discuss your financial status in depth.

It is also highly suggested that you schedule a meeting with your bankruptcy lawyer before attending the meeting with the creditors to make sure that the meeting goes well.

The Repayment Plan

During the first 30 days after you have submitted the paperwork to the court, you will be required to begin making payments as you stated on the plan with your creditors. Usually, you are allowed to pay in a few different ways, including cash, check, or money order. However, most people would rather you pay through payroll deduction because then the money is guaranteed every month. If your financial status changes, the plan that you wrote out can be changed to fit your financial status as well.

In the repayment plan, debtors usually identify three types of claims: priority claims, involving taxes and associated bankruptcy fees; secured claims, involving secured property debt; and unsecured claims, which refers to most other forms of debt. Only priority claims must be paid in full.

All of the information above isn't a substitute for legal counsel. It is for your personal information only, not advice. If you have questions or concerns contact your local South Bay bankruptcy lawyer.

The South Bay Chapter 13 Bankruptcy law consultants at the Eric N. Klein, P.A. law firm is here to help you. Call them today at 561-353-2500.

Portions reprinted from the office of the US Department of Justice.