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Multiple benefits linked with a bankruptcy “wage earner’s plan”

Liquidation versus reorganization. Those are often choices – candidly, opportunities tied to real solutions – that financially challenged individuals and families spanning Miami and other southeastern areas of Florida can optimally consider when facing onerously high debt levels.

Liquidation is centrally tied to a so-called Chapter 7 bankruptcy, which is a constitutionally recognized process enabling severely burdened debtors to discharge payment obligations and secure a fresh financial start.

Today’s entry provides essential information surrounding the debt-reorganization possibilities afforded by Chapter 13 bankruptcy.

That form of financial relief merits the above-cited “wage earner plan” tag for a very specific reason. An authoritative Miami legal source on proven debt-relief options notes Chapter 13’s applicability for individuals “who face heavy debts but still earn sufficient income [and] can set up a gradual repayment plan with a court.”

Chapter 13 filers typically have not only a steady influx of income, but a select level of surplus cash as well that can be allocated to a debt-repayment plan applicable over what is usually a 3- to 5-year period.

Who is a logical candidate for Chapter 13 protection?

Every financial challenge is different, of course, and any individual facing material debt woes can profit immediately from a timely and candid consultation with a proven and empathetic bankruptcy legal team. It might ultimately be the case that a Chapter 13 bankruptcy filing spells an effective and potent strategy for regaining financial traction in a given case. It often is for filers like these:

  • Individuals now gainfully employed and capable of satisfying debt obligations who took a temporary financial hit resulting in some unexpected current challenges (e.g., lapsed home mortgage payments)
  • Individuals interested in repaying assumed debt via a devised bankruptcy plan based on a workable repayment schedule applicable across a period of several years

The multiple and diverse benefits tied to a Chapter 13 filing

Prospective Chapter 13 filers having the benefit of a close consultation with experienced bankruptcy attorneys are often surprised and buoyed by the upsides of filing for this bankruptcy variant. An in-depth online legal overview of Chapter 13 notes these positives that feature in legions of cases:

  • Foreclosure avoidance
  • Secured debt rescheduling
  • Freedom from creditor harassment and intrusion
  • Reduced negative impact on credit as compared with other debt-resolving strategies

Chapter 13 bankruptcy turns out to be an optimal debt-reduction strategy for many individuals urgently seeking financial help.

Any form of bankruptcy filing contains a degree of detail and complexity. Questions or concerns can be directed to an experienced debt-relief legal team.

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