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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