Chapter 13 Bankruptcy

The first action that you will take when filing a Chapter 13 bankruptcy in Florida is to take an approved credit counseling course. Your Clearwater bankruptcy lawyer will have several companies that they work with and will set this up for you. The cost is usually around $40 and most of the courses can be completed online in a very short period of time. Along with the cost for the credit counseling you will have a filing cost in the amount of $274 that is paid to the Bankruptcy Court.

Your attorney will generally charge you a flat fee to file for bankruptcy. This amount will vary from attorney to attorney, and will also depend on the complexity of your case. If your Chapter 13 bankruptcy is somewhat straightforward, your bankruptcy lawyer might be willing to cut you a break on their fees. One of the striking differences between a Chapter 7 and a Chapter 13 bankruptcy is that your attorney will be able to take payments when you file for Chapter 13 throughout the course of your repayment plan. Generally speaking you might make payments to your attorney for a Chapter 7 bankruptcy, but they will not file your petition until they are paid in full. The reason is that they could become a creditor during your Chapter 7 and have that debt wiped out. They are offered a priority status in repayment plans on a Chapter 13 and as such will often put a great portion of their fees inside the plan in an effort to help you.

The greatest challenge in filing for a Clearwater Chapter 13 bankruptcy is the development and implementation of a repayment plan. Basically said what you will need to do is look at your total monthly income, allowable monthly expenses, and secured debts. You will subtract from your income the payments for your monthly expenses and secured debts. This will leave you with a dollar amount that is referred to as disposable income. Your unsecured creditors will be paid with your disposable income.

Continue reading about the Repayment Plan and Chapter 13 bankruptcy.