Financial strain for any reason can be stressful, and available solutions may be confusing. The options for dealing with financial troubles vary depending on the source of those troubles and whether those money problems are actually temporary or a long-term problems. If the financial strain placed on a Florida family is the result of a temporary situation, Chapter 13 bankruptcy may be the best way to deal with those financial issues and get a fresh financial start.
Chapter 13 bankruptcy is best known as a reorganizational bankruptcy. This type of bankruptcy can help families or individuals who may have lost jobs, divorced or otherwise temporarily fallen on hard financial times. It essentially gives families time pay back debt over a period of years. In addition, Chapter 13 can remove the risk of losing assets by stopping foreclosure actions.
The typical repayment plan that is approved and put into motion is a three-to-five year plan. A percentage of what is owed will be approved for the plan. After that point, payments are made to the bankruptcy trustee. This trustee is then in charge of paying the individual creditors who have agreed to the terms of the Chapter 13 bankruptcy filing.
Chapter 13 bankruptcy is not for everyone, and there is an approval process by which filers must abide. However, for those who want to keep assets who do not qualify for Chapter 7 bankruptcy, it may be the ideal option. Our website has more information about Chapter 13 bankruptcy and how it may help Florida families overcome tough financial times.