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.