Why people generally file a Chapter 13

1. You have assets over what Florida exemptions allow to file Chapter 7;

2. You have too much income for Chapter 7, or that;

3. You want to change the terms of a car loan or mortgage.

Play catch up: If you are behind on mortgage payments, Chapter 13 can let you catch up the mortgage over time and keep the house, even after a foreclosure is filed.

Modify your mortgage: You can do a Mortgage Modification Mediation with a Certified Mediator appointed by the Bankruptcy Court.

– Strip a lien(s): If the value of the house is less than you owe on the 1st mortgage, you can usually strip the 2nd mortgage through Chapter 13 and only have to keep paying the first.

If your car is upside down: If you owe a high-interest rate on a car loan or the car is worth much less than owe on it, you have options here as well.

IRS debt: Chapter 13 can also usually stop interest and penalties on IRS debt, and save money in paying it through bankruptcy.

Sherry Ellis
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