Miami Chapter 13 Bankruptcy Lawyer
Florida Bankruptcy Attorney Serving Clients with Chapter 13 Cases in Miami
Struggling with debt can produce anxiety and tension for an individual or in any family. Consumer debt can be especially burdensome when it means you are having difficulty making your monthly mortgage payment or paying your bills on time. For most consumers who are considering bankruptcy, they are thinking about either Chapter 13 bankruptcy or Chapter 7 bankruptcy. Most debtors are eligible for Chapter 13 bankruptcy, and this form of bankruptcy protection can also be particularly helpful to consumers who are facing foreclosure on a home.
To learn more about filing for personal bankruptcy, reach out to a Miami Chapter 13 bankruptcy lawyer as soon as possible. We can get started on your case immediately.
What is Chapter 13 Bankruptcy in Miami?
What is Chapter 13 bankruptcy, and how does it differ from Chapter 7 bankruptcy? Chapter 13 is known as a “reorganization bankruptcy,” meaning that consumers can file for this type of bankruptcy if they want to reorganize their debts. In other words, this is not a liquidation bankruptcy (like Chapter 7) where all of a debtor’s non-exempt assets are liquidated in order to repay a creditor. Instead, Chapter 13 allows a consumer to create a payment plan to reorganize her debts and to pay them off over a period of time.
Given that Chapter 13 bankruptcy allows debtors with a steady income to reorganize debts in order to pay them off over a longer period of time, this type of bankruptcy is also known as a “wage earner’s plan.” Typically, the terms of the Chapter 13 repayment plan last for three to five years. Once the debtor completes the terms of the repayment plan, remaining eligible debts are discharged.
Debt Limit Requirements for Miami Chapter 13 Bankruptcy
In addition to showing the court that you are able to meet the terms of a repayment plan with a regular income, Chapter 13 also comes with debt limit requirements. In other words, if you have too much debt, you may not be able to file for Chapter 13 bankruptcy. Instead, you may need to consider filing for Chapter 11 bankruptcy instead if you want to have a reorganization bankruptcy or do not qualify for Chapter 7. These are the current debt limits for Chapter 13 cases:
- Unsecured debts less than $394,725; and
- Secured debts less than $1,184,200.
In addition to debt limits, a consumer cannot file for Chapter 13 bankruptcy if she or he had a bankruptcy petition dismissed for a willful failure to appear in the last 180 days. There are also other restrictions that you should discuss with a bankruptcy attorney.
Benefits to Filing for Chapter 13 Bankruptcy in Miami
There are many benefits to Chapter 13 bankruptcy. For many consumers, one of the most important features of Chapter 13 bankruptcy is that it can stop a foreclosure and allow a debtor to get back on track with her mortgage payments.
Experienced Miami Chapter 13 Bankruptcy Lawyer Can Help
Are you struggling with debt despite having a regular income? Whether you have substantial credit card debt due to years of spending beyond your means or recently took on a significant amount of debt due to an unforeseeable situation such as a medical emergency or a job loss, filing for Chapter 13 bankruptcy may be extremely helpful to you. An experienced Miami Chapter 13 bankruptcy attorney can speak with you today about your options. Contact Nowack & Olson, PLLC to learn more about our services.