Chapter 13 Bankruptcy and your Debts and Property

The debtor is required to repay all or a portion of his/her debt over the course of 3 to 5 years if he/she files for Chapter 13 bankruptcy. A debtor is prohibited from taking actions while in Chapter 13 bankruptcy. Listed below are the following actions to avoid:

– Without the approval of the bankruptcy court, you are not allowed to sell or to “get rid of” your property. For instance, if you own a car and decides that you want to give it away to charity, you will need to have the permission first of the bankruptcy court before you give it away when you have filed for Chapter 13 bankruptcy. Another example would be selling your home. You would still need to get the bankruptcy court’s approval before you try to sell it when you’re in Chapter 13 bankruptcy.

– Accruing more debt without about bankruptcy court approval. When you’re in Chapter 13 bankruptcy, you will have to keep in mind that you are not allowed to borrow money unless you get an approval of the bankruptcy court. For instance, you want to give away your old card and want to buy a new one, you would have to get the permission from bankruptcy court first before you could proceed with it.

If you mistakenly took an action in any of those stated above without the permission of the bankruptcy court, a bankruptcy attorney might come in handy as your attorney can help you get the court approval even after the fact. Contact a Florida Bankruptcy attorney today if you want to get more information about the rules of Chapter 13 bankruptcy.

Please call us at (813) 200 4133 to discuss (for free) if bankruptcy is suitable for you.

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