Getting behind on bills can cause emotional and financial distress for any Florida resident. The situation can be made worse if your lender is threatening to take your home from you through a foreclosure action. If you qualify, Chapter 13 bankruptcy could help you keep your home.
Like other filers, this chapter might give you the opportunity to get current on your mortgage payments. You could even protect assets that might otherwise be sold to pay your debts in a Chapter 7 bankruptcy. It might even be possible to discharge some tax debts if they meet certain criteria.
The lynch pin of a Chapter 13 bankruptcy is the repayment plan. A Florida bankruptcy attorney will review your finances and help you devise a debt repayment plan that is reasonable for you and will meet the approval of the trustee and bankruptcy court judge. Plans last between three and five years and are facilitated and monitored by a Chapter 13 trustee. You will make one payment to him or her, and payments are sent to your creditors in accordance with your court-approved plan.
The goal of a Chapter 13 bankruptcy is to get you up-to-date on your secured debts such as your mortgage loan and eliminate any remaining unsecured debts. If things go according to plan, you could still be in your home and have more disposable income to help keep your mortgage loan payments current. There is no need to wait until you feel there is no hope to contact an attorney. The sooner you confront your financial situation head on, the sooner you can move forward to a brighter financial future.