A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. §1322(d). During this time the law forbids creditors from starting or continuing collection efforts.
Mohammad Faruqui is an attorney in Fort Lauderdale, FL, serving consumer and corporate bankruptcy clients throughout Florida, including the Miami-Dade, Broward and Palm Beach counties. Mr. Faruqui is a member of the National Association of Consumer Bankruptcy Attorneys and a member of the South Florida Bankruptcy Bar Association. Mr. Faruqui has been licensed to practice law in Florida since 2006, and graduated from Nova-Southeastern University Shepard Broad Law Center in 2005.
For bankruptcy matters, Mr. Faruqui can be contacted at Mohammad@Faruquilawfirm.com or at (954) 769-0745.
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