What is Chapter 13 Bankruptcy?

Chapter 13 is a type of bankruptcy for individuals who have stable jobs, are overwhelmed with debt but also have a home or other property they want to hold on to. Deciding to file is a difficult decision and consulting with a Jacksonville chapter 13 bankruptcy attorney will allow you to know if you are eligible file. The first step is to hire a Chapter 13 law firm to help you determine if filing is in your best interests and protect you throughout the process. There are many advantages to filing for Chapter 13 bankruptcy, but everyone's situation will be different, so contact a Chapter 13 attorney in Jacksonville for a free consultation and find out more bankruptcy information.

The largest advantage to Chapter 13 bankruptcy is that you will generally get to keep your car and family home. Since this type of bankruptcy is a restructuring of debt, it also remains on your credit for less time and allows you to begin building up a positive credit score more quickly than other types of bankruptcy. During the chapter 13 bankruptcy proceedings, you are protected by the courts from all your creditors. That means no more harassing phone calls or letters. You and your creditors will agree on a monthly payment amount, which you will pay for 36 to 60 months. During this time you must make the agreed payments, but also maintain payments on secured debt (your mortgage, for example). At the end of the payment period, your remaining debts are discharged. When debt is discharged you can never be held liable for them in the future.

There are some debts that cannot be wiped out under other types of bankruptcy that may be eligible to be discharged under Chapter 13. For example, debts you obtained from court settlements and sometimes taxes that cannot be wiped out under a liquidation bankruptcy. A Chapter 13 lawyer can determine which of your debts are eligible to be discharged.

If you have a co-signer on a personal loan, this type of bankruptcy can protect them from creditors. If you file Chapter 7, your creditor can go after your co-signer for payment of the debt. By contrast, in a Chapter 13, you pay off the debt and protect your co-signer from being liable for the debt. If you are considering filing Chapter 13 in Jacksonville, you should hire Chapter 13 bankruptcy attorneys to help you file all the paperwork correctly and protect you and your interests.