Filing Chapter 13 Bankruptcy in Orlando, Florida

A Chapter 13 bankruptcy is essentially a debt repayment plan, supervised by the Florida bankruptcy court. You and your Orlando Florida bankruptcy lawyer must create a plan that will pay off a percentage of your debt over a period of three to five years. Orlando Florida residents usually file under Chapter 13 for these reasons:

• Because they have too much income to qualify under the means test for Chapter 7 bankruptcy discharge of debt
• To reorganize and restructure debts that have become overwhelming
• To catch up on mortgage payments to prevent a home foreclosure
• To protect other assets that they would lose in a Chapter 7 bankruptcy
• To eliminate unsecured debt, such as credit card obligations, while keeping assets might be seized in a chapter 7 bankruptcy to pay off secured creditors, such as a home or a car
• Under some circumstances, to discharge tax obligations.
• Because they have filed for chapter 7 relief within the last 8 years.

Orlando Florida residents qualifying for Chapter 13 usually have stable income that can be used to pay off a portion of the debt. This is an Orlando Florida bankruptcy solution for a temporary financial crisis.

The plan must account for payment of 100% of your secured debt, such as a home mortgage or car loan. The plan must then address payment of unsecured debt, such as credit cards, hospital bills, court judgments, payday loans and other unsecured loans.

Once the plan is approved, the debtor makes a single payment to the bankruptcy trustee. Creditors are barred from taking any action to collect their debts for as long as the plan is in effect. If all payments are made and the plan is completed, the debtor is entitled to a discharge of all debts that are the subject of the plan.

This type of Orlando Florida bankruptcy is more expensive because you must also pay to the trustee an administrative fee. Orlando Chapter 13 Bankruptcy Lawyers fees are also higher because it takes more time to create an implement a plan. However, a bankruptcy under Chapter 13 offers advantages that cannon be obtained in a Chapter 7 bankruptcy.

Like a filing under Chapter 7, a bankruptcy petition for relief under Chapter 13 puts an immediate stop to any action by a creditor against you, including foreclosure, repossession, wage garnishment, and harassing phone calls and letters. This is known as the automatic stay.

Let Us Make It Easy To Get a Fresh Start. Call Today For a Free Consultation! Contact Orlando Bankruptcy Lawyer: Jeff Badgley

As an experienced Orlando bankruptcy attorney, Jeff Badgley has over 20 years experience in helping Orlando and Central Florida residents with their financial matters. If you live in the Orlando, Altamonte Springs, Winter Springs, Winter Haven, Windermere, Ocoee, Winter Garden, Kissimmee, Clermont, Deltona, Oviedo, Winter Park or the Central Florida area and have any questions regarding an Orlando bankruptcy concern contact or call us at (866) 977-1544  for a FREE CONSULTATION.