Tampa Chapter 13 Bankruptcy Attorney 813-222-8210

Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is a reorganization of debt. The case states with the creation of a plan of reorganization in which you pay a portion of your debt back. The repayment plan in part is based on a repurchase of non-exempt assets from the bankruptcy estate (Liquidation Analysis); accordingly youmay keep most, if not all, of your assets.

How Chapter 13 Bankruptcy Works:

A Chapter 13 Bankruptcy typically focuses on either secured assets or an income test known as the Means Test.Under the Means Test the Debtor will typically pay their creditors the difference between their income and their allowed expenses. A person with more income than expenses, or discretionary income, may be required to file under Chapter 13 of the Bankruptcy Code, and may not be allowed to file under Chapter 7.

The Current income levels for the Chapter 13 means test are detailed below. A debtor may elect to file a Chapter 13 Bankruptcy to deal with specific debt. Certain secured debt may be reduced to the current value of the asset or restructured or modified to a longer payment plan or lower interest under Chapter 13. For example, a Chapter 13 can reduce a car loan to the value of the car, may be able to strip a second mortgage, or may be used to pay back loan payments over time.

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As an example: if you have a $500 monthly car payment and owe $25,000 on a three year old car that is only worth $9,000, under a chapter 13 bankruptcy we may be able to reduce your car payment to $150 a month for the next 60 months, plus 5.25% interest. Note that it is the higher of the two bankruptcy tests, either the means test or liquidation analysis that dictate the payment amount, and not the sum of the two tests. Regardless of these tests,your payment may be limited to the total amount of unsecured debt, plus allowed fees and costs.

(Upon entering the website the debtor may access their primary case information simply by entering the first seven digits of their case number (e.g. 03-12345) in the dialog box labeled “User ID” and entering the last four digits of the primary petitioner’s social security number in the dialog box labeled “password”.)

Meet Tampa’s Chapter 13 Bankruptcy Trustees:

PRESS RELEASE: currently many banks and investors are allowing principal reduction mortgage modifications. FHA including Fannie Mae and Freddie Mac are still waiting for approval from Congress to allow principal reductions, but they will allow very generous and creative modifications. Call us for a modification analysis in or out of bankruptcy. Galewski Law Group, P.A. 412 E. Madison Street Suite 1106 Tampa, FL 33602 Local: (813) 222-8210 Fax: (813) 222-8211 Email: info@galewski.com Toll-Free: 1-855-Stan-The-Man Did you know:

Tampa Bankruptcy Attorney – There is life after bankruptcy

There is life after bankruptcy. There is good credit, new credit cards and lines of credit, home loans and car loans after bankruptcy. Generally, credit reporting bureaus use three factors to create 90 percent of your score. your immediate payment history, your debt to credit limit and your debt to income ratio. The remaining ten percent of your score comes from smaller items such as having to many inquiries in a 6 month period.

Most people on the eve of bankruptcy do not have the greatest immediate payment history. Filing a bankruptcy can help improve this area over time. Instantly it is another bad mark, but that mark begins to age almost immediately and is almost a non issue in 12-24 months. Without the bankruptcy you will keep having other bad marks hit your score until you get your credit under control.

Your Debt to credit limit ratio is the amount that you owe compared to what you could possibly owe. Anything over 20% is bad. That is if you have $10,000 of total available credit card space and you owe more than $2,000 you are hurting your credit score. Most people, even those not considering a bankruptcy, seem to be above this mark. After a bankruptcy you will have no credit card debt and this will be a positive mark on your credit score.

Your debt to income ratio is the amount that you owe compared to what you make. Again anything over 20% is not good. That is if you make $100,000 per year but owe more than $20,000 you are hurting your score. Again most people, even those not considering bankruptcy are past this point today. Most people considering bankruptcy are over 25%. After a bankruptcy there would be no debt and this would be a positive factor in your score.

For these reasons and other most clients report that they are in the 650-720 range within 12 months of a chapter 7. FHA used to allow people to refinance out of a chapter 13 after 12 payments into the plan. Due to the market crash FHA now requires you to be 24 months removed from the bankruptcy for a loan. Other loans are available often at less then 9.9% for new homes. Credit cards will send you unsolicited offers and car dealers will often give you loans the day after a chapter 7 discharge.

The Galewski Law Group provides Accident, Insurance Claim, Injury, Chapter 7, Chapter 11 and Chapter 13 bankruptcy, foreclosure defense, mortgage modification, Divorce, and Personal Injury representation to clients throughout the Tampa Bay Area including Hillsborough, Pinellas, Manatee, Pasco, Polk, Sarasota and Hardee County and in cities that include Tampa, Clearwater, Dover, Seffner, Tarpon Springs, St. Petersburg, Palm Harbor, Dunedin, Safety Harbor, Lutz, Holiday,, Oldsmar, Sarasota, Crystal Beach, Bradenton, Lakeland, Brandon, Plant City, New Port Richey, Trinity, Spring Hill, Port Richey, Largo, Seminole, Pinellas Park, and Bartow.
412 E. Madison Street * Suite 1106 * Tampa, FL 33602 * Stan “The Man” Galewski * www.Galewski.com * 813-222-8210