I Need Help Now
Special Discounts For
Hurricane Victims!
Nowack & Olson, PLLC
South Florida
Bankruptcy Attorneys
Free Consultation

Defining the bankruptcy estate in Chapter 13

When Florida residents find themselves overwhelmed with debt, they may decide to seek relief and a fresh financial start in bankruptcy. Depending on their finances and circumstances, these debtors may agree to set up a manageable payment plan through Chapter 13 bankruptcy.

In a Chapter 13 bankruptcy, a debtor who has a steady income develops a court-approved repayment plan that last three or five years. This plan allows borrowers to keep their property, but they must agree to turn over their disposable income to a bankruptcy trustee who then distributes it to creditors. In some cases, there can be confusion over which debts should be included in the bankruptcy estate.

In a Georgia case, a title loan company asked that a vehicle that was used as collateral be excluded from the bankruptcy estate and that the loan company not be prohibited by the automatic stay from repossessing the vehicle. The court disagreed with the title loan company and stated that the lender was subject to the automatic stay against collection efforts.

Situations like this sometimes come up in bankruptcy cases. Since filing for bankruptcy is often stressful for many people, the last thing debtors want is to engage in a adversarial proceeding with a creditor. Unfortunately, the nature of some debts may create ambiguity that requires a court's intervention.Individuals considering bankruptcy may benefit from speaking with an experienced attorney before filing. Legal counsel may be able to examine the client's case and make recommendations regarding preparations and taking note of which creditors may present challenges to the proposed Chapter 13 plan.

No Comments

Leave a comment
Comment Information
Email Us For a Response

Let Us Help You

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Sunrise Office
8551 West Sunrise Blvd., Suite 208
Plantation, FL 33322

Toll Free: 888-813-4737
Phone: 954-349-2265
Plantation Law Office Map

Doral Office
8180 NW 36th St., Suite 102
Miami, FL 33166

Toll Free: 888-813-4737
Phone: 305-698-2265
Miami Law Office Map

Boca Raton & Delray Beach Office
6501 Congress Ave., Suite 100
Boca Raton, FL 33487

Toll Free: 888-813-4737
Phone: 561-463-2265
Boca Raton Law Office Map

Jupiter & Palm Beach Gardens Office
601 Heritage Dr., Suite 137A
Jupiter, FL 33458

Toll Free: 888-813-4737
Phone: 561-463-2265
Jupiter Law Office Map