Chapter 13 Bankruptcy

Serving Clients in North Florida

A Florida Chapter 13 bankruptcy is known as Individual Debt Adjustment which provides for the adjustment of debts of an individual with regular income. This type of bankruptcy process often involves those who are not eligible for a Chapter 7 filing or for those who wish to stop a foreclosure or repossession; these filers can keep their property while paying back all or a portion of their debts through a repayment plan approved by the court. The single repayment plan involves making a payment to the courts over a 3 to 5 year time period. This is known as a reorganization bankruptcy.

Under a Chapter 13, you receive the protection of the bankruptcy court against your creditors. This type of petition allows you to consolidate and repay your debt and often results in reducing or even eliminating old debt. Because you will be making a monthly payment, this plan requires that you have a steady source of income. Your debt repayment plan will be devised to reflect what you can realistically afford to pay each month.

This is often optimum for those with a monthly income who have fallen behind on their debts due to short-term financial problems such as an illness, injury, or temporary loss of work. This option is beneficial for those who obtain their income from other sources besides wages. If you earn an income from any source, it is usually possible to keep your home when filing a Chapter 13.

Court Protection Under Chapter 13

Under this filing, an appointed trustee from the court will collect your payments, pay your creditors, and ensure you keep up with your repayment plan. In the meantime, you will receive the protection of the automatic stay which stops credit harassment, collection attempts, and most legal actions such as foreclosure, wage garnishment, repossession, and lawsuits.

Certain eligibility requirements apply to Chapter 13 filings. To ensure that your filing is done properly and that you meet all of the necessary requirements and rules, it is important to work with a qualified attorney. As a Gainesville bankruptcy attorney who has been practicing law since 1987, I have extensive experience in bankruptcy law and have achieved national recognition through the Martindale-Hubbell rating service and the Avvo Client's Choice Award 2012 for the quality of my legal service.