Bankruptcy provides a fresh financial start to individuals who are overwhelmed with debt and ready to get back on track without it turning their life into a nightmare. Chapter 13 bankruptcy is one of the types of bankruptcy an individual may file to give them this fresh start. Unlike other types of bankruptcy, Chapter 13 initiate a payment plan that fits within your income so you can pay the debts owed. The payment plan must be approved by a bankruptcy judge in a bankruptcy court before it is in effect. Anyone who files for bankruptcy protection must follow all rules set forth under the plans and U.S. law. Need more information about Chapter 13 bankruptcy? Here are a few important facts you should know.
· Repayment plans last between 3 -5 years, depending on the current income level and state median amounts. Bankruptcy Code will not allow a plan to exceed 5 years.
· Once you declare bankruptcy, creditors may no longer contact you by phone or mail. Any collection efforts against you, including bank levies and wage garnishments, must the disease.
· Bankruptcy is very complicated and should always be handled with the expertise of a chapter 13 lawyer orlando fl. Lawyers charge a small fee for extraordinary services that protect your best interests.
· Chapter 13 bankruptcy may help you avoid foreclosure and repossession issues. This is one of the most common reasons people file for bankruptcy protection.
· You must be eligible for Chapter 13 bankruptcy before you can file for protection in a U.S. Bankruptcy court. Your unsecured debts must total less than $394,725.
Bankruptcy is a financial solution that eases the stress that debt cases to an individual or family. Although it may not be your ideal solution, it does work and helps anyone achieve their goals who is serious about completing that task.