How Does Chapter 13 Bankruptcy Work?
When you declare Chapter 13 bankruptcy in Tampa you are allowed to keep your assets in return for repaying all or most of your accumulated debt over a three to five year time frame. Chapter 13 is quite different from Chapter 7 which requires disposal of all non-exempt assets. The funds from those assets are used to repay debt as much as possible in return for discharge.
Filing for Chapter 13 bankruptcy in Tampa is not for everyone. To be eligible you must have sufficient income to repay some or part of the debt and you must prove to the court that you are in a position to do this as well as look after yourself and family. Those with low income usually are not allowed to file Chapter 13. It is also a stipulation that your debt must not exceed a certain ceiling which currently stands at close to 1.15 million dollars for secured debt and 380 thousand dollars of unsecured debt.
The key element of a Chapter 13 filing is the repayment plan. This plan is quite detailed, showing how much of the accumulated debt will be repaid. Some debts cannot be discounted and must be paid in full. These priority debts include child and spousal support, wages to qualified employees, and some tax obligations. The plan must include the regular payments that must be made to satisfy any secured debts such as the mortgage on your home or car payments, the plan must also show any arrears on these debts.
When filing for Chapter 13 bankruptcy in Tampa, the court will set a time frame for the plan to be executed. The time frame depends to a great extent on your income as well as your debt load. The normal time frame is three or five years.
If your situation is such that Chapter 13 bankruptcy in Tampa might be the preferred method then you will need the assistance of a bankruptcy attorney. You are invited to contact the Law Offices of Robert M. Geller, P.A.
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