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All That You Need To Know About Chapter 13 Bankruptcy Petition

All That You Need To Know About Chapter 13 Bankruptcy Petition

If you want to understand the chapter 13 bankruptcy in Florida then this small article will help you gain knowledge about this rule. It is popular as wage earners plan. Individuals with regular earnings are allowed to develop a repayment plan. The plan includes proposed installments that debtors can afford to pay the creditors.

The 13 bankruptcy petition has two basic requirements.

  1. You have to continue to pay your creditors from your income for the period of 5 years or till the lenders full payment is made, whichever comes first.
  2. You must pay at least some agreed reduced amount to your creditors, so that you become eligible to receive from your non exempt property, provided that you have also filed for chapter 7 bankruptcy first

There are few advantages of chapter 13 over chapter 7 bankruptcy. In case of chapter 13 debtors can eliminate or modify certain debts.

If you qualify for chapter 13 bankruptcy clauses in Florida, you can file a case. For secured debts the limit is $1,081.400 and for unsecured debt the limit is $360,475. Unsecured debt includes medical bills, personal loans, credit card dues for the purchase of food, clothes, vacations etc. A secured debt includes security interest on property, mortgage, car loan, and loan taken from any financial company for furniture, computer, or any other electronics items.

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Bankruptcy Procedures for Chapter 13

  • You will automatically get your stay immediately, after filing chapter 13 bankruptcy petitions.
  • You are totally shielded from your creditors after filing this chapter 13 bankruptcy.
  • Your creditors can not file any case against you after that.
  • In case you surrender your property then your creditor may file a case for claim of that property. However this chapter 13 will permit you to stop making any payment for your mortgage dues, if any.
  • You must submit all legal papers received from the creditors to your attorney instantly, so that he can study and maneuver the case correctly.
  • You must also provide the creditor’s name and address, so that your attorney can communicate with them.

How Creditors are Handled After Filing

  • Court will generally send intimation to your creditors after a week you file the petition.
  • The intimation will be sent at the provided addresses.
  • In case your creditors contact for payment then make them aware that you have filed for bankruptcy.
  • You can also provide them your case number.
  • You can request them not to bother you anymore.
  • If your creditors still continue to call you then you must note down how many times they have called you and provide all these details to your attorney.

Role of Trustee

After your petition has been accepted by the court, a trustee is nominated. The role of the trustee is to supervise the proposed debtors plan. He collects the payment from the debtors and distributes it to the creditor as per the agreed terms and conditions of the plan, which has been agreed by the court.

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