Miami Florida Bankruptcy Blog

Archive for the ‘Dealing With Debts’ Category

If Successful, a Chapter 13 Bankruptcy will require your creditors to take less money monthly over a three to five year period. A Chapter 13 Bankruptcy  carries the full force of the United States Government behind it. Banks, credit card companies, debt collectors and the like, clearly understand that your Chapter 13 Bankruptcy provides you with the government’s protection and the harassing phone calls and other harassing tactics they have been using to try and collect their debt will stop as soonas they are aware that you have filed for Chapter 13 Bankruptcy protection. If they don’t stop they may very well have to answer to the court as to why they didn’t.

When your Chapter 13 Bankruptcy is filed it will put a stop to:

• foreclosure actions;  
• wage garnishments  
• repossession of you car;  
• late charges;  
• interest and penalties on credit card accounts, taxes, and other loans;  
• harassment for back child support.  

Simply stated, a Chapter 13 Bankruptcy has the power to change your life. You can take almost every one of your current bills and consolidate them into one low monthly payment and in most circumstances your creditors are virtually powerless to do anything about it. If your Chapter 13 plan is approved they  must accept your court ordered payment plan whether they like it or not. 

The filing of the Chapter 13 petition must be accompanied by a proposed payment plan extending up to five years. The proposed payment plan must provide for the payment of all priority claims, such as taxes, in full. All tax returns for the four years prior to filing must be filed. 

The court will apply living standards set by IRS regulations to determine what is reasonable for you to pay for living expenses, including housing and food, to find out how much you have available to pay your debts. 

The bankruptcy trustee appointed by the Bankruptcy Court must review the proposed plan for accuracy and feasibility. The proposed plan is distributed to creditors, who have the right to object to the plan if it’s unreasonable. If the plan is approved, you can keep all your assets during the period of the plan. You make monthly payments to the bankruptcy trustee, who distributes the funds to the creditors according to the plan. If the plan is completed as approved, your unpaid debts are discharged. 

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.

A Chapter 13 Bankruptcy may be the right option for you if you are behind on your bills and feel as if you are falling further and further behind, with little or no hope of ever catching up. A Chapter 13 Bankruptcy may provide you with the opportunity to reorganize all of your monthly payments into one low monthly payment that you can afford. This probably sounds too good to be true. Well, its true, a Chapter 13 Bankruptcy provides you the opportunity to reorganize your debts to allow you to regain control of your financial future.

Chapter 13 is used most often to save a house from a foreclosure sale. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 bankruptcy is available to debtors with regular income. A business cannot file Chapter 13. In addition, there are upper limits on the amount of the individual’s secured and unsecured debts in Chapter 13 cases.

If you are an individual or a sole proprietor, you can file a Chapter 13 bankruptcy to pay off all or part of your debts over three to five years. Rather than wiping out debts immediately, this option allows you to reorganize them so you have time to pay.

Most people who file Chapter 13 bankruptcies have:

· Mortgages or other loans they would like to bring current, so they don’t lose their homes or other property

· Taxes, child support or student loans that can’t be wiped out by Chapter 7 bankruptcy

· Moral convictions that all debts should be paid no matter how long it takes

For a Chapter 13 bankruptcy, you’ll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities).

Matthew E. Mazur, Jr. Esq., is the managing shareholder of Matthew Mazur, P.A., a Coral Gables, Florida based law firm that represents clients in Bankrutpcy matters. For more information please visit www.coralgablesbankruptcyattorney.com.