Boca Raton Bankruptcy Lawyer

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, along with Chapter 7, is one of the most commonly filed forms of bankruptcy in the United States. It is also sometimes known as reorganization bankruptcy because the filers do not liquidate any assets in order to pay off debts; instead, they must set up an interest-free plan that utilizes their incomes to pay what is owed. Typically, this process takes a few years to complete.

In order for one to be eligible to file for Chapter 13 bankruptcy, he or she must have a stable income. That is the most important requirement. Secondly, the unsecured debts owed by the individual must not exceed $336,900, and their secured debts cannot be more than $1,010,650.

Finally, any previous attempts at filing for bankruptcy within the past 180 days that were dismissed due to the individual’s inability to comply with Court orders will prevent that person from filing for Charter 13 bankruptcy.

There are several advantages to choosing a Chapter 13 bankruptcy plan over any of the others. First, the debtors have the potential to receive a full discharge on the plan if they are able to make all required payments on time. With Chapter 13, the debtor may keep his or her estate, as opposed to Chapter 7, in which unsecured assets are liquidated to pay back the creditors. Finally, the payment plan is approved by the Court, even if the creditors do not approve of it. They still have the opportunity to file a complaint, but it is not guaranteed to be addressed.

Contact Us

If you would like to learn more about how you can file for Chapter 13 bankruptcy, please contact Boca Raton bankruptcy lawyer Eric N. Klein, P.C. today at 561-353-2800 to set up an appointment.