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How to File Chapter 13 Bankruptcy in Florida: Everything you should know. 

How to File Chapter 13 Bankruptcy in Florida: Everything you should know.

Filing for Chapter 13 Bankruptcy is a big step. It will have a significant influence on your finances and personal life. This does not imply that you won’t be able to survive, but you will need to make adjustments.

Before you file, it is crucial that you understand the entire process of Bankruptcy and what implications it will have on your future. This guide will outline everything involved in filing for Chapter 13 Bankruptcy in Florida so you can make an informed decision.

What is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is a type of reorganization Bankruptcy. It allows debtors to repay all or some of their debts over a period of three to five years. The repayment plan is overseen by a Bankruptcy trustee and must be approved by the court.

If you qualify for Chapter 13, you can keep your property and assets. This includes your home and car. You will also be able to work with your creditors to restructure your debt to be more manageable.

Chapter 13 Bankruptcy is often referred to as a “wage earner’s plan.” This is because it is designed for people who have a regular income and can afford to make monthly payments.

What are the documents required for chapter 13 Bankruptcy?

To file for Chapter 13 Bankruptcy, you will need the following documents:

– A list of your creditors and the amount owed to each one

– A list of your assets and liabilities

– Your most recent tax return

– Your pay stubs or other proof of income

– Any documents related to your debts, such as credit card statements or medical bills

You will also need to take a credit counseling course before filing for Bankruptcy. An approved educator must provide this course. You can find a list of approved providers on the U.S. Trustee’s website, or your lawyer will help you connect with the right people.

What are the eligibility requirements for Chapter 13 Bankruptcy?

To be eligible for Chapter 13 Bankruptcy, you must:

– Have a regular source of income

– Owe less than $394,725 in unsecured debt

– Owe less than $394,725 in secured debt

– Have not filed for Bankruptcy within the last 180 days

If you meet these requirements, you can file for Chapter 13 Bankruptcy.

What is the Florida Bankruptcy Means Test for Chapter 13 Bankruptcy?

The Florida Bankruptcy Means Test is a way to determine if you qualify for Chapter 13 Bankruptcy. It works by calculating your average monthly income over the last six months and comparing it to the median income in Florida.

You will automatically qualify for Chapter 13 Bankruptcy if your income is below the median. If it is above the median, you must pass a “means test” to prove that you can repay your debts.

How does chapter 13 Bankruptcy work in Florida?

Once you have filed for Chapter 13 Bankruptcy, an automatic stay will go into effect. This means that your creditors are not allowed to contact you or take any action to collect your debt.

You will then work with your Bankruptcy trustee to develop a repayment plan. This plan will last for three to five years based on your income and the debt you owe.

Once the court approves the repayment plan, you will make monthly payments to your trustee. They will then distribute the funds to your creditors.

What are the benefits of Chapter 13 Bankruptcy?

How to File Chapter 13 Bankruptcy in Florida: Everything you should know. 

There are several benefits to Chapter 13 Bankruptcy, including:

-You get to keep your property: In Chapter 13 Bankruptcy, you can keep your property and assets. This includes your home and car.

You can work with your creditors: In Chapter 13 Bankruptcy, you will be able to work with your creditors to restructure your debt. This can make it more manageable and easier to repay.

-It stops foreclosure: If you are behind on your mortgage payments, Chapter 13 Bankruptcy can stop foreclosure and give you time to catch up.

Automatic stay: An automatic stay goes into effect when you file for Chapter 13 Bankruptcy. This means that your creditors are not allowed to contact you or take any action to collect on your debt.

What are the disadvantages of Chapter 13 Bankruptcy?

There are also some disadvantages to Chapter 13 Bankruptcy, including:

-It can be costly:

The filing fee for Chapter 13 Bankruptcy is $310, and you will also need to pay for credit counseling and debtor education courses.

-It can be time-consuming:

Chapter 13 Bankruptcy can take three to five years to complete.

-It will damage your credit:

Although it will stay on your credit report for seven years, Chapter 13 Bankruptcy will damage your credit score. This can make it challenging to get a loan or credit card in the future.

-Your employer may find out:

Although your employer cannot fire you for filing for Bankruptcy, they may be able to demote you or reduce your hours.

If you are considering filing for Chapter 13 Bankruptcy, it is crucial that you speak with an experienced Bankruptcy attorney. They can help you understand the process and determine if it is right for you.

What are some alternatives to chapter 13 Bankruptcy?

How to File Chapter 13 Bankruptcy in Florida: Everything you should know. 

If you are not eligible for Chapter 13 Bankruptcy or do not want to file, there are some other options available, including:

-Debt settlement: 

Debt settlement is an option where you negotiate with your creditors to settle your debt for less than what you owe. This can be a good option if you have the money to pay the settlement.

-Debt consolidation:

 Debt consolidation is an option for taking out a new loan to pay off your existing debt. This can be a good option if you have good credit and can qualify for a low-interest loan.

-Credit counseling: 

Credit counseling is an option where you work with a credit counselor to create a debt management plan. This can be a good option if you cannot qualify for a debt consolidation loan.

-Personal Bankruptcy: 

Personal Bankruptcy is an option for filing for Bankruptcy and having your debts discharged. This should be considered as a last resort option as it will damage your credit and make it difficult to get a loan in the future.

What are the steps involved in filing for Chapter 13 Bankruptcy?

How to File Chapter 13 Bankruptcy in Florida: Everything you should know. 

If you are considering filing for Chapter 13 Bankruptcy, there are a few steps involved:

-Get credit counseling: 

You will need credit counseling from an approved provider within 180 days of filing for Bankruptcy.

-Take the debtor education course:

 You will need to take a debtor education course from an approved provider within 180 days of filing for Bankruptcy.

-Gather your financial documents: 

You will need to gather your financial documents, including your tax returns, pay stubs, and bank statements.

-File the Bankruptcy petition: 

You will need to file the Bankruptcy petition with the court. This can be done online or in person.

-Attend the meeting of creditors: 

You will need to attend the meeting of creditors, which is held about a month after you file for Bankruptcy.

-Make your plan payments: 

You will need to meet the commitment on your plan payments on time each month.

-Finish your case: 

You must complete all required payments and attend the completion hearing. Once you have finished your case, your debts will be discharged.

When you file your Bankruptcy with the DeVries Law Firm, you’ll get enrolled in a credit rebuilding program from 720creditscore.com. The program is designed to help you improve your credit score after Bankruptcy in the shortest possible time. 

What are some common mistakes people make when filing for Chapter 13 Bankruptcy?

There are a few common mistakes people make when filing for Chapter 13 Bankruptcy:

-Not completing the credit counseling and debtor education courses: You will need to complete both courses before filing for Bankruptcy.

-Filing without an attorney: Although you are not required to have an attorney, it is strongly recommended. An attorney can help you understand the process and ensure everything is filed correctly.

-Filing for the wrong type of Bankruptcy: There are two types of personal Bankruptcy, Chapter 13 and Chapter seven. Make sure you know which one you qualify for before filing.

-Missing plan payments: If you miss a plan payment, your Bankruptcy case can be dismissed. It is vital to make all payments on time.

-Failing to reaffirm secured debts: If you have secured debt, such as a mortgage or car loan, you will need to reaffirm the debt to keep the asset.

What are some common misconceptions about chapter 13 Bankruptcy?

There are a few common misconceptions about Chapter 13 Bankruptcy:

-Chapter 13 Bankruptcy will eliminate all of your debt: Although Chapter 13 Bankruptcy can help you get control of your debt, it will not eliminate all of your debt.

-You can only file for Chapter 13 Bankruptcy once: You can file for Chapter 13 Bankruptcy more than once, but there is a waiting period between filings.

-Chapter 13 Bankruptcy is only for people with a lot of debt: Chapter 13 Bankruptcy is available to people with any debt.

-You will lose all of your assets in Chapter 13 Bankruptcy: Although you may have to give up some assets in a Chapter 13 Bankruptcy, you will not lose all of your assets.

If you are considering filing for Chapter 13 Bankruptcy, it is crucial to understand the process and what to expect. Consulting with an attorney can help ensure you are making the best decision for your situation.

What is the cost of filing for Chapter 13 Bankruptcy?

The cost of filing for Chapter 13 Bankruptcy varies depending on your state and whether you hire an attorney. The average cost of hiring an attorney is $2000 to $3000. The court filing fee for Chapter 13 Bankruptcy is $310, but additional fees may be for mandatory credit counseling and debtor education courses.

If you are considering filing for Chapter 13 Bankruptcy, it is crucial to understand the process and what to expect. Consulting with an attorney can help ensure you are making the best decision for your situation.

Chapter 13 Bankruptcy frequently asked questions.

 How long does Chapter 13 Bankruptcy stay on my credit report?

Chapter 13 Bankruptcy will stay on your credit report for seven to ten years.

Can I file for Chapter 13 Bankruptcy if I have filed for Chapter seven in the past?

Yes, you can file for Chapter 13 Bankruptcy more than once, but there is a waiting period between filings.

Do I have to make all my payments through the Chapter 13 trustee?

No, you are not required to make all your payments through the Chapter 13 trustee. You can make some payments directly to your creditors.

What is the difference between Chapter 13 and Chapter 7 Bankruptcy?

The main difference between Chapter 13 and Chapter 7 Bankruptcy is that in Chapter 13 Bankruptcy, you can keep your assets, whereas, in Chapter 7 Bankruptcy, you may have to give up some of your assets. Additionally, in Chapter 13 Bankruptcy, you are required to make payments towards your debt; in Chapter 7 Bankruptcy, your debt may be eliminated.

 I am behind on my mortgage payments. Can I still file for Chapter 13 Bankruptcy?

Yes, you can file for Chapter 13 Bankruptcy if you are behind on your mortgage payments. Filing for Bankruptcy will stop the foreclosure process and give you time to catch up on your payments.

What is the income limit for filing chapter 13 Bankruptcy in Florida?

There is no income limit for filing Chapter 13 Bankruptcy. Whether you qualify for Chapter 13 Bankruptcy depends on your ability to make payments under a repayment plan.

 
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