Since 1995 Mary Jo Rivero has been helping clients with Chapter 13 and Chapter 7 bankruptcy law in Hollywood Florida.
Chapter 13 bankruptcy is also known as "wage earner" bankruptcy because, in order to file for Chapter 13, you must have a reliable source of income that you can use to repay some portion of your debt.
Repayment. When you file for Chapter 13 bankruptcy, you must propose a repayment plan that details how you are going to pay back your debts over the next three to five years. The minimum amount you will have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you'd filed for Chapter 7 bankruptcy.
Debt limits. Your debts must be within limits set by the federal government: Currently, you may not have more than $1,010, 650 in secured debt and $336,900 in unsecured debt.
Secured debts. If you have secured debts, Chapter 13 gives you an option to make up (or “cure”) missed payments to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over time. In come cases, you may be able to reduce the amount due on secured debt by “cramming down” the amount owed to the value of the collateral. In the case of real estate, you may be able strip off a second or third mortgage in a Chapter 13 Plan if there is no equity to secure the mortgage(s).