Understanding Chapter 13 Bankruptcy

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A chapter 13 bankruptcy is, to put it simply, a type of court-supervised payment plan. When you enter into this agreement, you will pay your unsecured and secured creditors each month, based on your income and any reasonable expenses.

chapter 13 bankruptcy

In order to qualify for this type of bankruptcy, you have to have sufficient income and make payments to secured creditors, which includes paying any past due payments.In this agreement, you will also be required to pay all of your disposable income into the plan until all creditors have been paid in full for a period of five years.

Advantages of Chapter 13 Bankruptcy

There are certain advantages offered by chapter 13 bankruptcy over chapter 7. For example, with this plan, you can modify or even eliminate some of your secured debts. Additionally, chapter 13 can help stop foreclosure so that you have the opportunity to catch up on any past due mortgage payments.


Additionally, unsecured second mortgage liens are able to be eliminated when you successfully file chapter 13 bankruptcy. This filing will also discharge some of your unsecured debts that are considered non-dischargeable in a chapter 7 filing.

Who Can File a Chapter 13 Bankruptcy in Florida?

There are certain requirements that you must meet to file a chapter 13 bankruptcy in the state of Florida. In many cases, working with a bankruptcy attorney will be the best way to determine if you qualify for this type of filing. Some of these requirements include:

  • Be a Florida resident
  • Have income that is sufficient to support the chapter 13 repayment plan
  • Adhere to the debt limits:
    • $383,175 for unsecured debts
    • $1,149,525 for secured debits

Unsecured debts including credit cards issued by banks, (i.e. Discover, AmericanExpress, MasterCard and Visa), medical bills and personal loans. Secured debts will including any debt where the creditor has some type of security interest in the property to guarantee that you pay, (i.e. electronics, furniture, car loans, mortgages, etc.).

Procedures during a Chapter 13 Bankruptcy Filing

When you file a chapter 13 bankruptcy petition, the automatic stay will go into effect. This is essentially a shield between you and each of your creditors. During the chapter 13 filing, creditors are prohibited from the continuation or commencement of the judicial proceeding against you and any collection efforts. The chapter 13 bankruptcy filing will also stop foreclosure so you have the ability to catch up on your mortgage payments.

If you are thinking about filing for chapter 13 bankruptcy in Florida, it is a good idea to speak with a chapter 13 bankruptcy attorney. They can help answer your questions and ensure this is the right type of filing for your needs. For more information, contact our bankruptcy attorneys at the Badgley Law Group by calling 407-781-0420.

Additional Reading

5 Ways to Improve Your Credit Score

Options for Florida Bankruptcy

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