Secrets about a Chapter 13 Bankruptcy in the State of Florida
A Chapter 13 bankruptcy is also known as reorganization and allows you to set up a 3-5 year payment plan. In this plan you will pay your debts to your court appoint trustee who collects the money and pays an agreed upon percentage of that money to your creditors.
Here is what most consumers may not know: You do not have repay all your debts! And, the debts you do pay back receive only a portion of what you owe them.
Your payments will be based on how much you can afford to pay each month.
Another secret many people do not know about Chapter 13 is that you can change your interest rates on your car loans. For example, say you own a lot of money on your car so you go to a title-loan company. They charge you over a 100% a year interest (yes, this actually happened). Now, instead of making a few hundred dollar per month car payment, you accrue a monthly payment of $1,000 - an amount you simply cannot afford. In a Chapter 13 bankruptcy, you may be able to change the interest rate on loans similar to this and decrease the interest rate to somewhere around 4.25%! This low interest rate combined with the 3-5 year payment plan will provide you plenty of cushion, keep the payments small and affordable and keep your car.
Bankruptcies are not one-size-fits-all. What type of bankruptcy you should file depends on your own particular circumstances. That is why contacting a Florida Bankruptcy Attorney is so vital to the outcome of your bankruptcy. An attorney can sit down with you and present all your available options regarding what is going to best for you, your family and your future.
Greg Gilbert
Keith Maynard
