Dedicated Florida Chapter 13 Bankruptcy Attorney
Millions of people across the United States struggle with consumer debt. Credit cards, medical bills, student loans, back taxes; all of these things can pile up to the point where a debtor can feel like they have no path forward. While it may not be anyone’s first option, filing for bankruptcy helps hundreds of thousands of Americans get out from under crippling debt every year. Nearly 300,000 consumers file for Chapter 13 bankruptcy annually, taking the first step toward financial security and independence.
The debt relief legal team at the Law Office of Verna Popo, P.A., prides itself on helping individuals and families in Miami-Dade, Broward and Palm Beach counties who are struggling with debt or have become disabled and need debt relief assistance. We bring our years of debt-relief experience to bear in helping Florida debtors find financial freedom. If you or your family are struggling with consumer debt, reach out to our bankruptcy and debt relief law office today to find out if Chapter 13 bankruptcy is the right option for you.
What is Chapter 13 Bankruptcy?
“Chapter 13” refers to a chapter of the United States Bankruptcy Code that governs a particular type of bankruptcy. Chapter 13 bankruptcy is the second most common form of bankruptcy in the United States, after Chapter 7. Unlike Chapter 7, Chapter 13 does not involve the sale of any personal assets. Also called a “reorganization bankruptcy,” Chapter 13 involves collecting and restructuring all covered debts into a single repayment plan, to be paid off over a set time period. Chapter 13 allows debtors to incorporate some debts that may be left out of a Chapter 7 proceeding, such as a mortgage.
The payment plan will be worked out between the debtor, the bankruptcy court, the trustee, and the creditors. Repayment periods typically last three or five years. The debtor’s total monthly obligation will be reduced to a more manageable level, and the overall debt owed is likely to be reduced as well. Any covered debts that remain at the end of the repayment period will be discharged. Chapter 13 gives relief to debtors who have regular income but are struggling with the volume of current obligations, giving debtors the benefit of delays on payments currently owed, reduced monthly obligation, and a reduction of total debt.
Qualifying for Chapter 13
Chapter 13 bankruptcy is not available to all debtors. It is specifically geared for debtors who have enough regular income to keep up with monthly payments (once reduced to a more manageable level). Chapter 13 is generally reserved for individuals and families who have income above the state median and who can guarantee that they will be able to stay current with payments over the next few years. Chapter 13 also has limits on the total amount of debt that a person can include in their repayment plan.
Prospective Chapter 13 filers can rely on any source of income to demonstrate eligibility, including:
- Typical wages or salary
- Social Security benefits
- Self-employment income
- Sales commissions
- Disability and workers’ comp benefits
- Public benefits such as welfare
- Child support or alimony
- Rent, royalties, and other regular payments
- Income from their spouse
Talk to a seasoned Chapter 13 bankruptcy attorney to discuss your finances and find out if you’re a strong candidate for Chapter 13 bankruptcy.
Get Control of Your Debt With Help from a Miami Chapter 13 Bankruptcy Lawyer
Dealing with the stress and anxiety of debt can be overwhelming. Between the general financial stress, aggressive bill collectors, and trying to navigate the frustrating social security system and other needs-based options, it can sometimes feel like there is no possibility for relief. Don’t let feelings of hopelessness drag you down. There is a path to financial freedom and security, and we can help you find it. Get experienced and effective help from a compassionate debt-relief lawyer who knows the law and knows how to provide you with real help in a timely fashion. For debt relief help from Miami to West Palm Beach and all points in between, contact the Law Office of Verna Popo, P.A., for a free consultation.