A Bankruptcy Attorney in Tampa Answers the Question - What is Chapter 13 Bankruptcy?
Have you found yourself late on credit card or mortgage payments recently, or have you missed some payments altogether? Do you find yourself buried under mounting debt and feel that your finances are spiraling out of control? Are you worried about your credit score taking a beating, or even worse, the thought of losing your home to foreclosure? If you answered yes to any of these questions, or are facing any other serious financial problems, you're not alone. Countless Americans are struggling in today's economy, but as any bankruptcy attorney in Tampa will tell you, a bankruptcy – despite being a scary option to consider – can actually be an effective solution as you try to get your life back on track.
One potential option that many distressed consumers turn to is a Chapter 13 bankruptcy. Unlike a Chapter 7 bankruptcy, or a liquidation bankruptcy, a Chapter 13 bankruptcy is a “consolidation and repayment” chapter that enables you to retain possession of valuable property that might otherwise have been taken in a Chapter 7 bankruptcy. Here is some other basic information on this option that your bankruptcy attorney in Tampa might give you:
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Rather than liquidate your assets to pay off debt, as in a Chapter 7 bankruptcy, you propose a repayment plan in a Chapter 13 scenario in which you plan to pay off a portion of your debt over a certain time frame between three and five years, often with no interest.
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Your bankruptcy attorney in Tampa will explain that if a Florida court approves your Chapter 13 payment plan, you may settle your debts even if your creditors are not willing to go along with the plan. Also, with a Chapter 13 bankruptcy, you are able to stop foreclosure on your home if you make your payments as required.
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Sometimes, you can use a Chapter 13 bankruptcy to eliminate a second mortgage that is wholly unsecured. Therefore, your bankruptcy attorney in Tampa will show you that this might allow you to keep your house and only have your first mortgage to pay in full. The second mortgage is paid a percentage of what is owed together with your other unsecured creditors.
As you can see, there are a number of potential benefits that a Chapter 13 bankruptcy can offer to struggling debtors. However, if you'd like more information on this chapter of bankruptcy, or any other potential solutions to your financial woes, contact the trusted bankruptcy attorney in Tampa – Yesner & Boss, P.L. – today to set up your free consultation.
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