Chapter 13 Bankruptcy

Those who find themselves reaching their own fiscal cliff are left wondering what they can do to stop themselves from going over. There are many options available for putting on the brakes, but which one makes the most sense?

For some, Chapter 13 bankruptcy offers a viable way to climb out of debt that allows them to keep real and personal property.

Bankruptcy is not the end of the world, as many may think. It offers a way out of a dead-end situation, allowing the petitioner to restructure his or her debt in a manner that is fair to both the debtor and creditors. At Yesner Law, we help individuals in Tampa and throughout Florida find debt relief by creating debt payment plans through Chapter 13 bankruptcy.

Understanding The Benefits Of Chapter 13 Bankruptcy

Without bankruptcy, creditors can be relentless in their attempt to get as much as they can, sometimes to the detriment of other creditors or the borrower. Many times there seems to be no relief in sight. Filing a Chapter 13 petition puts the control back in the debtor's hands, making it easier for the debtor to reorganize outstanding debts.

How Does Chapter 13 Bankruptcy Work?

The bankruptcy laws allow the debtor to pay back the creditors, if at all possible. Chapter 13 is designed in such a way that a debtor pays a consistent amount every month to an appointed trustee. Therefore, a Chapter 13 debtor must have regular income.

From there, the trustee distributes the funds to creditors. A Chapter 13 bankruptcy can last anywhere from 36 to 60 months, depending on several factors that are determined at the outset of the bankruptcy. Attorney Shawn Yesner explains these factors during an initial consultation.

Homeowners or property owners who want to keep their properties may be able to do so through Chapter 13, because the debtor can repay any mortgage arrears over the term of the repayment plan. The debtor can also "strip" or "remove" second and third mortgages or judgment liens that are wholly unsecured. In addition, the simple act of filing the petition temporarily stops the foreclosure. All ongoing mortgage payments must be made throughout the bankruptcy, but there is also the opportunity to renegotiate or modify the first mortgage.

We Provide Information About The Available Options

Filing bankruptcy may be beneficial for those who have no other alternative for reorganizing debt. Although it is not a cure-all, it is a tool that can bring relief for a difficult situation. Given the complex nature of the subject, most people have questions. Call 813-774-3013 or contact us online to schedule a free consultation and talk with an experienced lawyer.