West Palm Beach Chapter 13 Bankruptcy
Chapter 13 bankruptcy offers both individuals and small sole proprietorships a legal option for eliminating debt and obtaining a fresh start with their finances. A different type of bankruptcy from Chapter 7 or Chapter 11, Chapter 13 bankruptcy is also known as the bankruptcy plan for wage earners. It allows debtors with regular income to adjust their debts, keep their property, and repay their creditors for their debt over a time period, usually ranging from three to five years.
Reorganization and Debt Adjustment
Similar to Chapter 11 business bankruptcy whereby businesses in debt employ a means of reorganization to manage their finances and pay back their debt, Chapter 13 bankruptcy also involves a repayment plan developed by the debtor to repay all or part of his or her debts in instalments.
Benefits of Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is beneficial because by consolidating all debts into single monthly payments, the debtor can keep his or her assets rather than lose them through liquidation, as in Chapter 7 bankruptcy. In particular, Chapter 13 offers debtors a chance to save their homes from foreclosure.
Additionally, if the value of a second mortgage on your homestead property falls below the first mortgage, you may be able to eliminate the second mortgage through Chapter 13. Finally, Chapter 13 bankruptcy under bankruptcy law may result in lower payments for secured debts and also includes a provision protecting third parties—such as co-signers who share liability with the debtor on certain consumer debts.
Stop West Palm Beach Wage Garnishment
Wage garnishment involves the deduction of money from the wages or salary of an employee as the result of a court order. Wage garnishment is a legal action that can be taken against you if there is a judgment in your name. If your wages are being garnished because of unpaid debts or are at risk of being garnished, filing Chapter 13 bankruptcy can provide you with a solution to stop wage garnishment while working out a repayment plan. After filing for bankruptcy, your creditors are prohibited from taking any further action to collect debts from you, including wage garnishment.