13 bankruptcy chapter florida
Many people file bankruptcy under chapter 13 in the state of Florida every year. In most of cases, it is used for saving a house from foreclosures. Chapter 13 bankruptcy results in a plan that is made so as to repay all or part of the debt of a person. But Chapter 13 bankruptcy is not designed for eliminating all the debts of a person. It is considered useful for eliminating some part of IRS debt and for establishing an affordable plan to pay that part of IRS debt that has not been eliminated by the Chapter 13 bankruptcy. All the debtors that have regular income are eligible to apply for this type of bankruptcy. No business entity can file bankruptcy under Chapter 13. No upper limits are fixed in case of chapter 13 bankruptcies pertaining to secured and unsecured debts of a person.
In Florida, the debt repayment plan proposed under chapter 13 Bankruptcy varies from 3-5 years. It aims at repaying all or part of debts of a person from his future income. Apart from preventing house foreclosure, a person living in Florida can make use of the Chapter 13 bankruptcy for making up mortgage payments or missed car, paying back taxes and for stopping the interest accrual on the tax debt; whether local, state or federal. It can also be used for keeping valuable and non-exempt property. If any person is able to keep up all the terms of the repayment agreement, all of his remaining dischargeable debts would be released at the end of bankruptcy period. There are many factors that determine the amount to be repaid under bankruptcy filing. The reader should understand here that as per the bankruptcy law in the state of Florida the amount paid to the creditors under the Chapter 13 of bankruptcy should at least be that amount which would have been received by the creditors under the Chapter 7 of the Florida bankruptcy law. If a person is not having a regular source of income in the state of Florida, he cannot proceed with the chapter 13 bankruptcy. Chapter 13 of Florida bankruptcy law requires some disposable income with the person for the execution of repayment plan.
Various related aspects:
Chapter 13 Bankruptcy is used generally by those people that wish to keep their secured assets like home, car etc with them. It is quite obvious that these assets are held only when they carry high equity. Chapter 13 Bankruptcy is basically reorganization. Similarly, Chapter 7 bankruptcy is Liquidation. In most of cases, people living in the state of Florida resort to Chapter 13 bankruptcy only when they have valuable non-exempt assets. There are some exemptions that have been provided under the Chapter 13 Bankruptcy law in the state of Florida. All the assets and properties mentioned in the exemption law can easily be retained by the debtor and thus, he needs no protection from the creditor. These exemptions are provided in terms of dollar amount.
The bankruptcy plan:
As per the Chapter 13 Bankruptcy law in the state of Florida, the bankruptcy attorney would prepare and file the Chapter 13 Bankruptcy plan within 14 days of filing the bankruptcy. This plan envisages all the steps to be taken by the debtor that would be used for making payments to various creditors on monthly basis. All the creditors are repaid by means of a single monthly installment that is made by the debtor to the Chapter 13 Trustee. It is important to note here that the bankruptcy plan as well as the single monthly payment mentioned above is based upon the information provided by the debtor relating to his income and expenses. So far the total expenses are concerned under the chapter 13 bankruptcy plan, it would include all the regular monthly payments that are made against the secured items as well as the amount paid to the attorneys towards their fee, fee of trustee and the administration fee attached to the plan. The debtor has to prove his ability regarding payment of all the expenses mentioned above within the bankruptcy petition filed by him. Once the petition is signed and filed by the debtor, the bankruptcy court in the state of Florida would issue an order called as Order Establishing Deadline for Making Payments. As per the date and amount provided in the order, debtor is required to make all the Plan payments. On the payments sent to the Trustee, name of the debtor and case number has to be mentioned.
This ensures accurate posting in the account of debtor and the trustee receiving the money. If a person is employed, his employer deducts the payment from his pay check and sends the same to the Trustee. All the payments should be in the form of money order to cashiers check. No personal checks are accepted by the Trustee. In case, the employer forgets to send the payment to the Trustees office, it is the duty of debtor to deduct the payments from his salary and send the same to the office of Trustee. In case of non-payment by the debtor, he is issued an affidavit by the Trustee that is served in due time. After that, debtor has to make the over due payment as well as the payment next due as per the Chapter 13 Bankruptcy plan within a time period of 21 days. Thus, any lapse in the payments made by the debtor would result in payment of two installments within 21-day grace period; otherwise he would not be able to save his Chapter 13 Bankruptcy. Black If the Chapter 13 bankruptcy is dismissed because of non-payment by the debtor, the bankruptcy court issues an order prohibiting the debtor from filing of another Chapter 13 Bankruptcy case for a period of next 6 months.
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