April 23, 2024
What Is Chapter 13 Bankruptcy in Florida?

by Denis Kleinfeld

Chapter 13 bankruptcy is like a fresh start for individuals in Florida. It helps those with a regular income to reorganize their debts. Through this process, a person can save their home from being taken, change when certain debts are paid, and ensure their friend or family member who co-signed is protected. It’s a lot like a loan that combines all debts together. Then, instead of paying many different places, you make one payment to a trustee. This trustee makes sure your creditors get paid fairly.

To enter Chapter 13 bankruptcy, there are rules to follow. Your debts can’t be too high, and you need to get credit counseling. This type of bankruptcy is a well-thought-out way to deal with financial trouble.

Key Takeaways

  • Chapter 13 bankruptcy is a legal process that allows individuals in Florida to develop a repayment plan to address their debts.
  • Advantages of Chapter 13 bankruptcy include saving homes from foreclosure, rescheduling secured debts, and protecting co-signers.
  • Eligibility for Chapter 13 bankruptcy in Florida is based on the combined total secured and unsecured debts being less than $2,750,000.
  • The process of Chapter 13 bankruptcy involves filing a petition with the bankruptcy court and providing necessary documentation.
  • In Chapter 13 bankruptcy, creating a feasible repayment plan based on disposable income is essential for success.

The Advantages of Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a way to deal with debt that has many benefits. One big win is saving your home from being taken in foreclosure. By filing for Chapter 13, you can stop foreclosure and catch up on what you owe over time.

Chapter 13 also lets you change the timing and amount of how you pay off your loans. This doesn’t include your main home loan. It gives people in tough spots with their money the chance to make their debt situation better and easier to handle.

If you have shared debts with someone else, filing for Chapter 13 can protect them. It stops the debt collectors from going after the person who shares the loan with you. This helps keep them out of any debt trouble.

Another good thing about Chapter 13 is that it groups all your debt into one. Instead of paying several bills, you pay one amount to a trustee. They then hand out this money to your creditors. This makes it simpler to manage your debt and stick to a clear plan for repaying it.

But the best part of Chapter 13 is the plan to pay. It doesn’t force you to sell everything you own like Chapter 7. Instead, it looks at how much you can actually afford to pay back. This makes it much more doable for people who earn a steady income. You’ll have between three to five years to pay off as much as you can. Then, any remaining debt that you couldn’t pay might go away.

Advantages of Chapter 13 Bankruptcy
Ability to save homes from foreclosure
Rescheduling and extension of secured debts
Protection for co-signers
Consolidation of debts and simplified repayment process
Repayment plan based on disposable income

Eligibility for Chapter 13 Bankruptcy in Florida

To qualify for Chapter 13 bankruptcy in Florida, your debts must be less than $2,750,000. This count includes both secured and unsecured debts. Such a cap helps those with a manageable debt load.

There’s more to being eligible, though. You shouldn’t have had a bankruptcy case dismissed for not following court orders in the last 180 days. The goal is to make sure people are serious about seeking bankruptcy’s help.

If a case was dismissed after creditors asked for it, you might not qualify either. This rule stops people from misusing bankruptcy to avoid paying creditors.

Chapter 13 also requires credit counseling from an approved source. You must complete this within 180 days before filing. But, in some emergencies, or if there’s nowhere to get counseling, you might not need to follow this step.

Different from Chapter 7, Chapter 13 doesn’t need a means test. In Chapter 7, the means test checks if you can repay your debt with your income. Here, the test isn’t used. Yet, there are caps on your secured and unsecured debts – below $1,081,400 and $360,475 respectively.

So, Chapter 13 in Florida is available for those who meet its specific criteria. If you do, you can benefit from Chapter 13’s protective measures and the chance it offers to gradually pay back your debts.

The Process of Chapter 13 Bankruptcy in Florida

Chapter 13 bankruptcy helps deal with someone’s debts. It makes a plan to pay these debts over time. Here’s how Chapter 13 bankruptcy works in Florida:

  1. File a Petition: To start, you file a petition with the court. You also tell the court about what you own and owe. This includes your income, expenses, and any contracts you have.
  2. Credit Counseling: Before starting, you must get counseling. You need to show a certificate of this counseling. If you made a plan to pay your debts during the counseling, you have to show that too.
  3. Filing Fee: There’s a $313 filing fee. You can pay it over time.
  4. Additional Documents: Within 14 days of filing, you need to update your information. This means telling the court more about your money, what you own, and what you owe.
  5. Meeting of Creditors: You’ll have a meeting with your creditors within 21 to 50 days after filing. You, the trustee, and your creditors can talk about your repayment plan during this meeting.

This system makes sure you give all needed info for a good repayment plan. It helps manage your money troubles in a reasonable way.

Example of Chapter 13 Bankruptcy Process Timeline

This gives a look at how long Chapter 13 bankruptcy might take in Florida:

Timeline Activity
Day 1 File Chapter 13 petition with the bankruptcy court.
Day 14 Submit more documents, including asset and liability lists.
Day 21-50 Have your meeting with creditors and the trustee.
Day 60-90 There will be a hearing to approve your repayment plan.
Ongoing You make payments each month to the trustee.
3-5 years After paying off what you owe, any leftover debt is often forgiven.

Going through Chapter 13 in Florida is a big task. Make sure you follow everything closely and on time. Getting help from a bankruptcy lawyer can make the process easier for you.

Making Chapter 13 Repayment Plan Work

Chapter 13 bankruptcy in Florida makes debt repayment simpler. It’s crucial to set up a plan that fits your budget. This involves looking at your disposable income. That’s your income minus monthly living expenses.

You will use all disposable income to pay off debts for 3 to 5 years. If you follow and finish this plan, you might not have to pay all your debts.

Having a good bankruptcy attorney is important. They will help you understand the plan better. Also, they guide you through Florida’s Chapter 13 bankruptcy laws.

Your attorney and the trustee will work together. They ensure your repayment plan is realistic and fits your financial situation. This support is key to becoming debt-free and ensuring a stable future.

Monthly Expenses Amount
Housing $1,500
Utilities $200
Transportation $300
Food $400
Insurance $150
Medical $100
Debt Repayment $0
Total Monthly Expenses $2,550
Monthly Income $3,000
Disposable Income $450

Looking at the table, the person’s disposable income is $450 a month. This is after taking out their monthly expenses. They will use this money to pay their debts as agreed in the Chapter 13 plan.

Special Discharge in Chapter 13 Bankruptcy

Chapter 13 bankruptcy offers a special discharge that other chapters don’t. This special discharge can help get rid of debts that Chapter 7 can’t. It kicks in once you’ve finished the Chapter 13 repayment plan.

Different types of debts can or cannot be erasable through Chapter 13. For example, you can’t wipe away debts like criminal fines, child support, and some student loans. It’s crucial to know what can and can’t be removed.

To understand which debts you can get rid of, talking to a bankruptcy attorney is wise. They can provide expert advice. A good lawyer, like someone from Florida Law Advisers, can make the process smoother.

Dischargeable Debts in Chapter 13 Bankruptcy

Let’s look at some debts you can usually get rid of in Chapter 13:

Debt Type Dischargeable?
Credit card debt Yes
Medical bills Yes
Personal loans Yes
Past-due utility bills Yes

Remember, this list is not everything. Dealing with Chapter 13 means understanding your unique case. A bankruptcy attorney can help figure out what’s possible for your situation.

Special discharge in Chapter 13 Bankruptcy

Hiring an Attorney for Chapter 13 Bankruptcy

If you’re facing bankruptcy, it’s wise to hire a lawyer. These experts know bankruptcy law inside out. They can protect your rights and guide you every step of the way.

In Florida, choose an attorney skilled in Chapter 13 cases. Make sure they understand local laws and have a good success rate in court.

A good attorney will analyze your finances and see if Chapter 13 is a good fit. They’ll create a plan that’s manageable for you, aiming for the best outcome.

“A bankruptcy attorney can be your advocate and guide during this challenging time, providing you with the support you need to navigate the bankruptcy process smoothly and protect your rights. Hiring an experienced attorney is an investment in obtaining the best results for your Chapter 13 bankruptcy case.”

Hiring a lawyer for Chapter 13 is key for a better financial future. Yes, there’s a cost, but the benefits are huge. You’ll be stress-free, with someone dedicated to your success.

Think about using a top firm like Florida Law Advisers for Chapter 13 in Florida. They’ve got the legal smarts and experience to help you through.

Benefits of Hiring a Bankruptcy Attorney in Florida
1. Expert knowledge of bankruptcy laws and regulations
2. Guidance on eligibility requirements and documentation
3. Negotiation with creditors on your behalf
4. Representation in court proceedings
5. Development of a tailored repayment plan

Key Differences Between Chapter 7 and Chapter 13 Bankruptcy in Florida

In Florida, it’s important to know how Chapter 7 and Chapter 13 bankruptcy work differently. They both give people ways to deal with debt and get financial help. But, each one has its own rules and who can apply.

Chapter 7 Bankruptcy

In Chapter 7, some of your things might be sold to pay off debts. It’s best for those with not much money or things. You don’t make a plan to pay back money. And it’s over in a few months, usually 3-6.

If you make less money than most people in the state, you might be able to pick Chapter 7. But if you make more, you’ll need to see if you can still qualify.

Chapter 13 Bankruptcy

Chapter 13 is about making a plan to pay your debts over time. It fits people with a steady income. This way, you can keep your things and slowly pay what you owe.

With Chapter 13, your debt payment plan lasts three to five years. It focuses on paying off big debts first, like loans for cars and houses. This chapter always has a payment plan.

Benefits and Considerations

The choice between Chapter 7 and Chapter 13 depends on what you’re trying to do. Chapter 7 can clear your unsecured debts quickly. Chapter 13 helps save your things and lets you pay back in a way that works for you.

It’s smart to talk to a lawyer who knows about bankruptcy. They can help you understand how each plan might work for you. They help with figuring out if you can apply and with the steps to follow.

Chapter 7 Bankruptcy Chapter 13 Bankruptcy
Eligibility Means test based on income* Regular income
Assets Potential liquidation Protected
Disposable Income Non-applicable Central to repayment plan
Timeline Quicker process (3-6 months) Longer process (3-5 years)
Debt Discharge Possible discharge of unsecured debts* Discharge of unsecured debts after successful repayment plan

“Chapter 13 bankruptcy allows for the elimination of certain debts that would not be dischargeable in Chapter 7 bankruptcy.”

Payment Plan N/A Required
Assets Protection Varies depending on exemptions Protected

*Eligibility for Chapter 7 bankruptcy is subject to the means test, which involves income analysis. The potential discharge of unsecured debts may vary depending on individual circumstances and the court’s decision.

The successful completion of the repayment plan is necessary for the discharge of unsecured debts in Chapter 13 bankruptcy.

Chapter 7 vs. Chapter 13 Bankruptcy in Florida

Bankruptcy Law Firm in Florida

Thinking about bankruptcy in Florida? It’s smart to chat with a top bankruptcy law firm. Florida Law Advisers is trusted for its full help throughout the process. They give a free consult to sort your finances and plan how to handle debt.

The Expertise You Need

Florida Law Advisers gets the tough parts of bankruptcy law. Their experienced team eases you through, finding the best fit for your money matters. With deep knowledge of local laws, they protect your interests. Depend on their know-how for a new start.

“It’s hard to go through bankruptcy alone. Our Florida Law Advisers team is here to back you, leading you to financial recovery.”

Your Path to Financial Freedom

They see bankruptcy as your chance for a clean slate, not the last choice. Their aim is turning your finances around for a better tomorrow. Whatever your financial issue, their team fights for your rights and smooths the bankruptcy path.

Client-Focused Approach

Florida Law Advisers stands out by crafting care and solutions just for you. They deeply understand your financial spots and make plans that match. Their caring style guarantees you’re looked after closely during bankruptcy. Rely on their help to make smart choices and find long-lasting financial success.

Why Choose Florida Law Advisers? How We Can Help
Expertise in Florida bankruptcy laws Guidance on chapter selection
Personalized attention and support Assistance in developing a repayment plan
Compassionate and dedicated team Protection of your rights throughout the process
Free consultation to discuss your financial situation Resources to help you achieve lasting financial stability

Don’t pick just anyone for your financial future. Call Florida Law Advisers now for a free consult and start anew.


Chapter 13 bankruptcy in Florida helps people deal with debts and control their money again. This type of bankruptcy can stop homes from being taken away, rearrange secured debts, keep co-signers safe, and set up a payment plan. The plan is made from what money you have left after paying necessary costs.

But, talking to a bankruptcy attorney is very important. They know all about Chapter 13 bankruptcy in Florida and can make sure you’re on the right track. An attorney with experience will look out for your rights, guide you through the process, and help you achieve a good result.

If the idea of Chapter 13 bankruptcy in Florida interests you, get in touch with a trusted bankruptcy law firm. Florida Law Advisers is one such place. They will assist you from start to finish, offering solutions to handle your debt effectively. A first talk with them is free and can point you towards a better money future.


What is Chapter 13 Bankruptcy in Florida?

Chapter 13 bankruptcy is a way for those with a regular income to tackle their debts. It involves setting up a plan to repay what you owe over three to five years. During this time, you make payments to your creditors.

What are the advantages of Chapter 13 Bankruptcy?

There are several benefits to Chapter 13 bankruptcy. You might save your home from being taken, reschedule debts, and protect co-signers. It can also act like a loan, making it easier to manage your debt.

What are the eligibility requirements for Chapter 13 Bankruptcy in Florida?

To qualify in Florida, you should have less than ,750,000 in combined debts. This includes both secured and unsecured debts when filing. You need to have had credit counseling within 180 days before you file too.

What is the process of filing for Chapter 13 Bankruptcy in Florida?

The process starts with filing a petition with the court. You also submit lists of your assets, what you owe, your income, and expenses. You must make these filings. After that, creditors usually meet with you somewhere between 21 and 50 days after submitting your paperwork.

How can I make the Chapter 13 repayment plan work?

It’s important that your plan is possible based on what you earn after expenses are taken out. Getting help from a bankruptcy lawyer and your trustee is key. They can help you come up with a plan that’s likely to succeed.

What is the special discharge in Chapter 13 Bankruptcy?

In Chapter 13, you may get rid of certain debts that might not go away in Chapter 7. But first, you need to finish your repayment plan successfully. After that, these particular debts can be wiped out.

Should I hire an attorney for Chapter 13 Bankruptcy in Florida?

While you can take on a bankruptcy case on your own, it’s often best to get a lawyer. They know the ins and outs of bankruptcy law. This means they can help you guard your rights and get through the process more smoothly.

What are the key differences between Chapter 7 and Chapter 13 Bankruptcy in Florida?

Chapter 7 sells certain assets to pay your debts, but it doesn’t require a repayment plan. Chapter 13, on the other hand, makes you pay back some of what you owe. This type is often used by those who have a regular income and want to hold on to their assets.

Is there a bankruptcy law firm in Florida that can help with Chapter 13 Bankruptcy?

Yes, in Florida, you can turn to Florida Law Advisers for help with bankruptcy. They are experts who can guide you through the whole process. Their goal is to help you handle your debt effectively.

What is the conclusion for Chapter 13 Bankruptcy in Florida?

Chapter 13 bankruptcy offers a path to dealing with debt for individuals. It allows you to work with a lawyer and understand what’s needed for a successful plan. This way, you can start anew with your finances.