What Is Chapter 13 Bankruptcy?
What is a Chapter 13 Bankruptcy? What do I need to know? What are some common misconceptions about Chapter 13 Bankruptcy? Listen as Shawn Yesner of Yesner Law dispel 3 of the most common myths surrounding Chapter 13 bankruptcies in Tampa, FL.
Of course you can always learn more by visiting our series of information videos on bankruptcy here: http://www.youtube.com/playlist?list=… Transcript: Hi I’m Shawn Yesner with Yesner Law. Many times clients come to us with assumptions about Chapter 13 Bankruptcy, and I’d like to take this time to dispel those myths. The first is that the debtor will have to pay all of their money to the bankruptcy trustee, this is not true. What the bankruptcy code requires is that the debtors pay disposable income, but disposable income takes things into consideration like meals and entertainment at a reasonable level. So it’s not every single penny that has to go to the bankruptcy trustee every month in a Chapter 13 bankruptcy plan. The second myth is that the debtor will not be able to move during the 3 to 5 year term of the bankruptcy plan. Again that’s not true. What’s relevant is where the homeowner, where the debtor lives at the time of the filing. If they live in Florida in Tampa, then they can file here in Tampa and if they decide moving later is the better option, they can do that they can leave Tampa, they can leave the State of Florida, as long as they continue making those Chapter 13 plan payments, to the Chapter 13 trustee. The last one is that they will not be able to buy a new house or a new car while they are in bankruptcy. Now credit issues aside, borrows can borrow money while they are in a bankruptcy however, we would have to get permission from the bankruptcy court and we’d have to get permission from the bankruptcy trustee with a very simple motion We need to tell the court and tell the trustee, the source of the funds what it is the debtor wants to buy and why. But in most cases if that purchase is reasonable, like an old car broke down and we need to buy a new car or the lease is up with one apartment and we need to get a house or a second apartment. Typically the trustee and the judge will approve of those motions. So I hope that I’ve been able to dispel some myths around Chapter 13 bankruptcy, certainly if you have any questions, or if you’d like to schedule a free consultation, please visit our website: YesnerLaw.com on the website you’ll find a contact us page and you can schedule your appointment through the contact us portal on the website. I’m Shawn Yesner with Yesner Law. There’s always options.