Stuart Chapter 13 Bankruptcy Attorney
Do you earn a sufficient income but find it challenging to keep current on your child support, tax payments, or alimony? Is your home loan currently underwater, or are you struggling to pay a second mortgage? If you are in any of these scenarios, you may find that a Chapter 13 bankruptcy will provide the protection and relief you need. Our Stuart Chapter 13 bankruptcy attorney knows the challenges you are facing and can help you end harassing calls from creditors, as well as the other stressors associated with high levels of debt.
How Does Chapter 13 Bankruptcy Work?
Unlike in a Chapter 7 bankruptcy, Chapter 13 does not discharge your debts. Although you may be able to eliminate some of your debt during a Chapter 13, the majority of it is restructured into a repayment plan. Chapter 13 repayment plans typically last between three and five years, which can make the debt much easier for you to pay. Borrowers are not at risk for losing any of their property, as the majority of the debt they owe is going to be repaid to customers.
What are the Benefits of Chapter 13 Bankruptcy?
Although Chapter 13 does not discharge your debts, meaning you are no longer responsible for paying them, the process still holds many benefits for borrowers. The biggest benefits associated with Chapter 13 bankruptcy are as follows:
- Reduce the total amount of debt owed and pay off the remaining debt
- Create a monthly payment schedule that is more manageable than what you currently owe
- Protect your future credit score, as a Chapter 13 only remains on a report for 7 years, unlike the 10 years for a Chapter 7
- File bankruptcy again sooner once the case is complete, if necessary
- Start off with a clean financial slate once the repayment period is over
The Automatic Stay in Chapter 13
Like in all bankruptcy cases, immediately after filing your Chapter 13 bankruptcy petition with the appropriate court, a judge will issue an automatic stay. The automatic stay prohibits creditors and debt collectors from contacting you and trying to collect on the debt. This can stop the endless phone calls from debt collection companies, and protect you from certain legal action. Once an automatic stay has been issued, creditors and debt collectors cannot file a lawsuit against you, attempt to garnish your wages, or take other harmful actions.
The automatic stay can also stop a foreclosure on your home. Even if the automatic stay is issued just before a foreclosure sale, the sale must be delayed until at least the end of your bankruptcy case. Once a Chapter 13 case is closed, many borrowers find they are able to stay in their home, even if it was in jeopardy before the process started.
Our Chapter 13 Bankruptcy Attorney in Stuart Can Help You Through the Process
If you are struggling with debt, our Stuart Chapter 13 bankruptcy attorney at Kelley, Fulton, Kaplan & Eller can provide the sound legal advice you need. Call us now at 561-264-6850 or reach out to us online to schedule a consultation.