Need to Know Information on Bankruptcy Filing - Chapter 13 Florida covers the guidelines to prevent liquidation of the assets and is more of “reorganization” in which the debtor proposes a repayment plan of 3-5 years to the creditor.
Recovering from a debt is indeed hard but not impossible. With the help of right knowledge of lawful procedures along with right patience and fortitude, repaying debt becomes considerably easy. If you are one of the debtor, you must know about all your rights and processes in cases where you are not in state to repay the debt. Most of the people are generally not aware of their rights and end up in losing much more than their debt and their career as well.
All about Chapter 13…
There are certain laws designed by the government to relieve the debtors on the occasions where they are not able to repay their debts. Chapter 13 Florida covers the guidelines to prevent liquidation of the assets and is more of “reorganization” in which the debtor proposes a repayment plan of 3-5 years to the creditor.
By filing bankruptcy under Chapter 13, the debtor is believed to repay all the debts from his future income and can prevent his assets such as foreclosure of the property, car and other mortgage payments. Interests on tax debts can also be impeded. If the debtor meets all the terms of repayment till the end of the proposed plan that is generally 3-5 years, he is then exempted of all the remaining dischargeable debt.
The amount to be repaid by debtor primarily depends on his throwaway income and several other factors. The entire amount to be paid to the creditors should at least match the amount they would have received if case was filed under Chapter 7 of bankruptcy.
One of the eligibilities of being able to file under chapter 13 is that the debtor should have some source of regular income and some funds to be able to apply for Chapter 13 repayment plan. Filing under this law is beneficial if the debtor wishes to repossess their assets. The debtors can then effectively make up to their missed payments and can sort off reinitiate the actual agreement.
For this reason Chapter 13 is also termed as reorganization and chapter 7 as liquidation. However for other cases where the individual just wish to confiscate the liability of debt, Chapter 7 can be a good choice.
How exactly chapter 7 and 13 differ…
The major difference between the two is basically their time periods. A chapter 7 case lasts for a duration of 3-4 months, whereas Chapter 13 Florida on an average takes around 3-5 years. Even though most of cases filed in florida are under chapter 7 yet here are some of the obvious benefits that why you should prefer chapter 13 over 7.
Aside from preventing the assets, this law can considerably reduce your secured debts to a newer value as per the security. Moreover you can also get relieved from the dischargeable debt such as liability of repaying because of divorce or separation agreement.
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