January 8, 2015

Meeting Chapter 13 Bankruptcy Filing Needs

When the best recourse for your financial woes is a bankruptcy filing, you may have to make the decision between filing for a Chapter 7 and a Chapter 13. If things point to a Chapter 13, however, you need to make sure that the amount you owe does not exceed the $383,175 cap for unsecured debts, and $1,149, 525 for secured debts, under the stated rules effective until April 1, 2016. Your bankruptcy attorney in Orlando can assist you in making sure your bankruptcy filing is in line with all stated regulations.


Fine-Tooth Comb
A diligently-filed bankruptcy will entail reviewing all the debts accrued, and properly categorizing them in order to comply with requirements. For example, you can split a large debt into either contingent or unliquidated debts, which will not count toward the limits. Contingent debts are arrears that you are not obligated to pay unless there are contingencies attached to the loan. Unliquidated debts are indeterminate in the sense that the amounts could not be ascertained, or those where your responsibility to pay could not be established right away.

Not that Kind of Cramming

Some legal experts believe a cramdown is one option to, at least, get under the Chapter 13 debt limits. A cramdown is where you can limit the debt’s principal balance to the actual value of any secured property. Your lawyer can guide you on how this can reduce your interest and help stretch the payments at lower values.

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