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West Palm Beach Chapter 13 Bankruptcy

If you are facing a mortgage foreclosure or repossession, and are employed with a regular income, a Chapter 13 bankruptcy will often be the most appropriate chapter under which to file. In a Chapter 13 bankruptcy the client can often discharge many of the same debts as listed above in Chapter 7 but this Chapter requires that clients create a repayment plan proposing how to pay back their creditors a small percentage of what is owed. Once this plan is approved by the court, creditors have no choice but to accept the terms. Many clients come to our office with the misconception that by filing a Chapter 13 they will be required to pay back all of their creditors in full which has already proved impossible.

In most cases, creditors will often be paid only a fraction of what is owed and even this reduced amount will be spread out over a payment plan lasting three to five years. The amount that must be repaid is based upon a formula taking into consideration the client’s income and expenses. Obviously, there would be no point in filing for bankruptcy if you had to repay all of your debts and were forced to be penniless and on the streets as a result. Bankruptcy is not a punishment but rather an opportunity for a “fresh start” and these laws can be used to offer protection to you and your family.

Those facing foreclosure and repossession can use a Chapter 13 bankruptcy as a powerful weapon to stop creditors. Filing a Chapter 13 bankruptcy can stop a foreclosure and prevent a sale by forcing creditors to accept your late payments over three to five years. Once a bankruptcy is filed creditors are not permitted to contact you or attempt to collect any amounts due outside of the bankruptcy court. Therefore, clients can work on their financial situations in peace. Once the repayment plan is complete, most of the remaining debt is discharged and the slate is wiped clean.
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