Chapter 13 Bankruptcy Lawyer Deerfield Beach

Chapter 13 is a federal repayment process for an eligible individual with regular income. The debtor proposes a court-supervised plan, usually lasting three to five years and never longer than five years, that addresses secured, priority, and unsecured claims while the debtor keeps property and makes required payments. Call 561-265-1120.

Filing a Chapter 13 petition before the foreclosure sale is completed generally activates the automatic stay and stops the scheduled sale. Prior bankruptcy dismissals, repeat filings, existing in-rem orders, statutory exceptions, or a creditor’s motion for stay relief can affect protection. A sale date requires immediate review. Call 561-265-1120.

A qualifying plan may spread past-due mortgage payments over as long as 60 months while the debtor resumes and maintains the regular mortgage payments that come due after filing. The plan and household budget must account for arrears, escrow, fees, trustee payments, insurance, taxes, and continuing living expenses. Call 561-265-1120.

Generally, no. Section 1322(b)(2) protects a claim secured only by the debtor’s principal residence from modification. Chapter 13 may still cure arrears and maintain the regular payment under the loan, but the page does not treat a protected first mortgage on the primary home as a cramdown claim. Call 561-265-1120.

A wholly unsecured junior mortgage may be treated as unsecured when the property value is fully consumed by senior liens. A junior HOA lien may require the same value analysis but also depends on statutory priority and the nature of the lien. Proper valuation evidence, notice, local court procedure, consistent plan treatment, and successful completion are important. Call 561-265-1120.

A personal-use vehicle loan may be eligible for value-based treatment when the vehicle was purchased more than 910 days before filing, subject to valuation, interest, feasibility, and confirmation. A purchase-money vehicle debt incurred within 910 days is generally not reduced to the vehicle’s current value under the Chapter 13 cramdown provision. Call 561-265-1120.

The co-debtor stay may prevent a creditor from collecting a consumer debt from an individual who is jointly liable with the debtor, such as a co-signer. A creditor may seek relief when the co-signer received the consideration, the plan does not propose to pay the claim, or irreparable harm is shown. Business debts generally are not covered. Call 561-265-1120.

An individual with regular income, including a qualifying self-employed person or sole proprietor, may file Chapter 13. Current eligibility generally requires unsecured debts below $526,700 and secured debts below $1,580,125. Corporations and partnerships cannot use Chapter 13. Prior cases, credit counseling, tax filings, and plan feasibility also matter. Call 561-265-1120.

The court decides whether the plan satisfies the Bankruptcy Code after trustee review, creditor notice, the meeting of creditors, and any objections. Common issues include good faith, feasibility, property value, secured and priority treatment, arrears, disposable income, and the liquidation test. The debtor may need evidence or an amended plan before confirmation. Call 561-265-1120.

A confirmed plan binds the debtor and creditors. The debtor must continue plan payments, required current mortgage or secured payments, taxes, domestic-support obligations, and other duties. Significant financial changes should be reviewed promptly because modification may be necessary. Discharge generally follows successful completion and required certifications, although some debts and long-term liens remain. Call 561-265-1120.