Hollywood Florida Chapter 13 Bankruptcy Faqs

Chapter 13 bankruptcy is sometimes called “wage earner’s” reorganization bankruptcy.  Unlike Chapter 7 bankruptcy which wipes out most of your debts, Chapter 13 uses your income to pay your creditors some or all of what you owe to them over a period of time.  Chapter 13 bankruptcy involves a structured repayment plan to discharge your debts. For a Chapter 13 bankruptcy, you must show a stable income as well as disposable income left over after you pay for necessities such as shelter, food, and utilities.

Filing for Chapter 13 Bankruptcy gives individuals an opportunity to save their homes from foreclosure. Chapter 13 can stop foreclosure proceedings and may help you catch up on delinquent mortgage payments over time. Nevertheless, debtors must still make all mortgage payments that come due during the chapter 13 plan on time.  Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then pays the creditors. Debtors have no direct contact with creditors while under chapter 13 protection.

If you are in need of Bankruptcy Services then contact the Law Office of Kevin Gleason P.A. in Hollywood Florida.