subject: The Requisites For Filing For Chapter 13 Bankruptcy [print this page] The Requisites For Filing For Chapter 13 Bankruptcy
Chapter 13 bankruptcy is classified as a reorganization bankruptcy, rather than a liquidation bankruptcy like Chapter 7. In a Chapter 13 bankruptcy, the debtor will not have a lien attached to his assets to secure payment of debts. Instead, the debtor will be required to create a payment plan, which describes how the income the borrower receives will be used to pay off the debts. The plan will typically be designed to pay off the debt within three to five years. The requisites and procedures for petitioning for a Chapter 13 bankruptcy can be very challenging and a debtor should always talk with a competent Tampa bankruptcy lawyer for help.
If a debtor qualifies for a Chapter 13 Bankruptcy he will need to prepare a payment plan. The payment plan describes in detail how much the applicant will pay creditors for the debt owed. Although there is no standardized, official form to be used, many courts have developed their own which can be helpful and provide guidance in creating the payment plan. A Tampa bankruptcy attorney should be able to help an applicant create a payment plan that will generate successful results. In order to be permitted to proceed with a for Chapter 13 the borrower is required to be able to show that his income will be sufficient to make the payments described in the Chapter 13 payment plan. If the income is too low, or if it is not steady then the debtor may not be able to make the payments per the payment plan and will regarded ineligible for Chapter 13 bankruptcy.
In addition, the applicant must owe less than $1,010,650 in secured debts & less than $336,900 owed in unsecured debts. An unsecured debt is one where a lender does not have the authority to take a particular item of property if the debt is not paid. A secured debt is one where a lender "secures" the loan by your assurance that the lender is allowed to take a specific item of property if the debt is not paid.
For more information on a Chapter 13 Bankruptcy contact Florida Law Group to speak with one of our knowledgeable Tampa bankruptcy attorneys. Our dedicated Tampa bankruptcy lawyers can answer all your questions and help you draft a payment plan and direct you through the process of filing a Chapter 13 bankruptcy.
