Chapter 13
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Understanding Chapter 13 Bankruptcy And When It Makes Sense

Too often, individuals or married couples wait too long to file bankruptcy because they view it as a last-gasp measure to resolve unmanageable debt. In the process, they lose assets they could have held on to had they consulted with a bankruptcy attorney earlier in the process.

At Lacayo Law Firm, P.A., we help people who are struggling with debt assess their options and rebuild a solid financial foundation. This may be accomplished through Chapter 7 or Chapter 13 bankruptcy, or by developing a completely different debt consolidation plan. Each case is different and requires a solution that is tailored to the specifics of that situation.

Bankruptcy is not a stain on your credit record that can never be overcome. Quite the contrary. In many cases, bankruptcy is the smartest solution for putting an end to debt problems. It is possible to hold on to many of your assets in Chapter 7 bankruptcy and retain even more assets if you qualify for Chapter 13 bankruptcy.

Stay In Your Home And Restructure Your Debt

Chapter 13 bankruptcy is sometimes called a wage earner’s bankruptcy because it offers those who make a high enough income an opportunity to restructure their debt and create a repayment plan instead of liquidating their assets. This includes the right to stay in a family home as long as you are able to remain current on mortgage payments. Restructuring other debt in the Chapter 13 process often makes it possible for a party to stay current with the mortgage payments going forward and pay any past-due amount over time.

A key advantage of filing for Chapter 13 bankruptcy is that it stops foreclosure and prevents creditors from seeking payment from you. Some debt, including credit card balances, medical bills and personal loans, may be discharged completely. Other debt must be paid over a period of three to five years.

Qualifying For Chapter 13

In order to qualify for Chapter 13 bankruptcy, you must show the court that you are up to date on your tax filings as well as employed and making enough income to meet your repayment obligations. Your secured and unsecured debt levels must not exceed these federal limits:

  • $419,275 for a debtor’s noncontingent, liquidated unsecured debts
  • $1,257,850 for a debtor’s noncontingent, liquidated secured debts

We’re Here To Help You Make Sense Of Bankruptcy

Don’t be among those who mistakenly postpone investigating bankruptcy as a solution and forfeit assets and options unnecessarily. We welcome the opportunity to review your situation and recommend an effective course of action. Call 786-671-4878 or use our online contact form to schedule a free consultation.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.