Taking definitive action about financial problems can seem overwhelming. Many of us avoid making important decisions, for whatever reasons. For some of us, failing to take action can be the fear of being associated with social stigma or the fear of failure. While this may be understandable, failing to take action regarding financial problems is probably the worst decision to make.
Bankruptcy is a valuable option for individuals faced with mounting financial complications. Those who file for bankruptcy take advantage of existing laws in order to reevaluate, reorganize, and execute a customized plan designed to fix and improve their financial situation.
Sadly, many people still think of filing for bankruptcy as admitting defeat. This is not only unfair but far from the truth. Taking action does not mean that an individual will be forced from their home or will be required to give up all of his or her property. Rather, filing for bankruptcy is, more often than not, the best financial decision an individual (or organization) in debt can make. In fact, approximately 45,000 Florida residents and businesses sought bankruptcy relief in 2016.
Chapter 13 bankruptcy is a form of bankruptcy that may be right for you. Filing for bankruptcy under chapter 13 allows you to organize your finances and repay your creditors over time. Under chapter 13 bankruptcy, debtors, with regular income, reorganize their debts under a court-approved repayment plan. Debtors will make payments to a bankruptcy trustee, over the course of 3 to 5 years, until debts are repaid.
You must meet certain requirements in order to benefit from chapter 13 bankruptcy. Chapter 13 bankruptcy is only available to individuals, so businesses cannot take advantage of this chapter. (As a business/business owner, other chapters are available to you, and it is highly recommended that you seek legal counsel to assist you in filing for bankruptcy). Individuals who seek to qualify for chapter 13 bankruptcy must demonstrate that their debts fall below a certain amount—less than $336,900 unsecured debts and $1,010,650 in secured debt. Filers must also demonstrate that they earn sufficient income to repay their debt obligations over the course of repayment.
Individuals who qualify and file for chapter 13 bankruptcy should not worry about their homes or other property. Under chapter 13 bankruptcy, and contrary to popular belief, individuals are able to keep their home. In fact, bankruptcy exemptions are available to Florida filers. Under Florida laws, debtors are able to exempt an unlimited amount of homestead property from their debt obligations. Other exemptions can reduce the total amount of debt filers are required to pay over the course of repayment. Taking advantage of available exemptions can play a pivotal role in making a chapter 13 bankruptcy accessible and available to Florida debtors.
Call Us Today to Speak with a St. Petersburg Chapter 13 Bankruptcy Attorney
You should consider filing for chapter 13 bankruptcy if you are facing financial hardship. Filing for bankruptcy provides you with an opportunity to reorganize your finances to repay your debtors and discharge debts over time. The process of filing for bankruptcy is not always as clear-cut as it seems. Given the complexities of the process, it is highly advisable that you seek the legal counsel to help you file. Here at Berkowitz & Myer, we are committed to providing you with superior legal counsel in this difficult time. Schedule a consultation with us by calling (727) 344-0123 today or contacting us online.