A Chapter 13 bankruptcy is similar to consolidation payment program for your unsecured debts. Unsecured debts consist of credit cards, medical debt, personal loans, and so on. The amount which is to be paid towards your unsecured debts is determined case by case, and is dependent upon each individual’s monthly income, expenses, and the individual’s assets (if any). Although similar to a debt consolidation program, the Chapter 13 bankruptcy is more powerful. You do not have to repay all of your debts. You obtain a discharge that eliminates debt.
At Tudhope Law, our bankruptcy lawyers work with you to determine an affordable monthly payment, and to maximize the amount of unsecured debts which you can discharge.
In addition, the discharge in a Chapter 13 bankruptcy wipes out more unsecured debt than Chapter 7 discharge. Some examples of debts which are dischargeable in a Chapter 13 bankruptcy, but not in a Chapter 7 bankruptcy, are debts for willful and malicious injury to property, certain tax obligations, and certain debts arising from property settlements in divorce or separation proceedings. 11 U.S.C. § 1328(a).
The end result of a Chapter 13 bankruptcy is similar to a Chapter 7 bankruptcy — where your obligation to pay is terminated and you can focus on rebuilding your financial future.
The Orlando bankruptcy attorneys at Tudhope Law, are highly experienced in Florida Bankruptcy Law, and are prepared to fully advise you of all your options, including the advantages and disadvantages regarding a Chapter 13 bankruptcy. The entire bankruptcy staff will work vigorously to obtain the best outcome for you and your family.