When Is It Best To File A Fort Lauderdale Chapter 13 Bankruptcy Instead of Chapter 7?

Everyone has heard about a Chapter 7 bankruptcy in Fort Lauderdale and how it will wipe out your debts.  But, bankruptcy law can do so much more than just provide debt relief.  Most people don’t know that they can restructure car loans and any other loan where you gave personal property as collateral.  You can get rid of a second mortgage if the house value is less than what is owed on the first mortgage.  You can wipe out IRS taxes or pay them off without continuing to accrue interest and penalties.  Below are some common scenarios where you either must file a Davie Chapter 13 bankruptcy or it’s better for you than a Pembroke Pines Chapter 7 bankruptcy:

• Your income is over the means test threshold and you are unable to file a Chapter 7 bankruptcy in Broward County.
• You are behind in your mortgage payments and don’t want to lose your house to foreclosure. We can file a Chapter 13 bankruptcy to catch up with the mortgage payments so you can keep your house.
• You missed car payments and you don’t want to have your car repossessed.  If you owe more than what your car is worth and you’ve owned it for more than 910 days, we can lower the balance of the car down to what it’s worth and pay it through the Chapter 13 payment plan.
• If you bought the car within 910 days of filing Chapter 13 bankruptcy in Fort Lauderdale, and you’re paying a high-interest rate, we can lower the interest rate down to 5.25% and pay the car off through the plan at the lower interest rate.
• If you owe money to an ex-spouse (except if it’s child support or domestic support) and are having trouble paying it.  Some divorce debts can be eliminated except for domestic support.
• If you filed a Hollywood or Broward County Chapter 7 bankruptcy less than eight years ago but need to file bankruptcy again.  You can file a Miramar Chapter 13 bankruptcy before the eight years and depending on the timing, you may receive a discharge or not.  Chapter 13 bankruptcy can be used to resolve issues like catching up on a mortgage and stopping a foreclosure sale where you don’t need another discharge – you just need to force the mortgage lender to take your mortgage payments in a manner that you can afford.
• A creditor received a judgment lien against your house and you need to have it removed. 
• There is a second mortgage on your house.  If your house is worth less than what is owed on the first mortgage, we may be able to eliminate the second mortgage in its entirety.  Yes, we can get rid of that second mortgage if the situation qualifies.
• You owe the IRS delinquent taxes that are just piling up interest and penalties. We can sometimes eliminate IRS taxes or we can pay them off over a 3 to 5 year period without additional interest and penalties.  Sometimes, it’s a combination of both.  We get rid of IRS taxes for some of the debt and pay the remainder off through the Chapter 13 bankruptcy plan in Fort Lauderdale.
• You qualify for a Chapter 7 bankruptcy but you have property that cannot be protected and you will lose in the Ft Lauderdale Chapter 7 bankruptcy.  If you want to keep the property, then Chapter 13 bankruptcy is a great way to do so.
• You are a business owner and do not want to take any chances that you will lose the business because you file a Chapter 7 bankruptcy.
• You got your driver’s license suspended because you didn’t pay court fines or fees on time and you want to have your driver’s license reinstated right away.  If your driver’s license was suspended because of Florida’s Financial Responsibility law, you may also get it reinstated right away with a Chapter 13.  We can review your unique circumstance and see if you qualify.

At the Bankruptcy Law Firm of Orfelia Mayor, we know Broward County bankruptcy law!  We can guide you through this stressful time of your life with patience and experience.  Contact us today for a free bankruptcy consultation in our Cooper City office.  Our office is located minutes from Davie, Weston, Coral Springs, Tamarac, Pembroke Pines and Hollywood.