Chapter 13 Bankruptcy

Understanding Chapter 13

Also called the "wage earner's plan." A court-supervised repayment plan that lets you keep your property while catching up on missed payments over 3 to 5 years.

The Basics

What is Chapter 13 Bankruptcy?

Chapter 13 is a legal process where you propose a plan to repay some or all of your debts over a period of 3 to 5 years. Unlike Chapter 7, you don't have to give up any property. Instead, you make monthly payments to a trustee, who distributes the money to your creditors.

The plan lasts 3 years if your income is below Florida's median, or 5 years if it's above.

The court must confirm (approve) your plan before it takes effect. Once confirmed, plan payments may be deducted from your paycheck — a practice that increases the likelihood payments will be made on time and the plan completed.

Good Fit For

Who Usually Uses Chapter 13?

Chapter 13 makes sense when you have something to protect — a home, a car, or property you don't want to lose.

Behind on Mortgage

You want to catch up on missed payments and keep your home.

Behind on Car Loan

You want to keep your vehicle and avoid repossession.

Steady Income

You earn enough to make monthly plan payments to a trustee.

Non-Exempt Property

You own assets that Chapter 7 would require you to sell.

Income Too High for Ch 7

You don't pass the means test, but still need debt relief.

Certain Tax Debts

You need to repay debts (like taxes) that Chapter 7 can't eliminate.

What It Does

Benefits and Limitations

What It Can Do

  • Stop foreclosure and let you catch up
  • Stop car repossession
  • Stop wage garnishment
  • Eliminate some unsecured debts
  • Let you keep all your property
  • Repay back taxes over time
  • Cure mortgage defaults over the plan

What It Can't Do

  • Eliminate most unsecured debts entirely
  • Eliminate student loans (in most cases)
  • Eliminate child support or alimony
  • Work without steady income
  • End quickly — it lasts 3 to 5 years
  • Eliminate long-term secured obligations (like a mortgage itself)
Step by Step

How the Process Works

1

Pre-Filing Credit Counseling

Complete a credit counseling course within 180 days before filing. Certificate required.

2

Prepare and File the Petition

Petition, schedules, statements of financial affairs, and — critically — a proposed Chapter 13 Plan setting out monthly payments.

3

Automatic Stay Goes Into Effect

The moment you file, an automatic stay stops most collection actions — lawsuits, garnishments, foreclosures, and creditor calls.

4

Meeting of Creditors (341 Meeting)

Held 4 to 6 weeks after filing. The trustee reviews your plan and questions you about your assets and debts.

5

Hearing on Confirmation

After the 341 meeting, the trustee recommends to the judge whether your plan satisfies the Bankruptcy Code. The judge approves or requests changes.

6

Make Payments Through the Plan

You make monthly payments to the trustee — often deducted directly from your paycheck — for 3 to 5 years.

7

Complete Financial Management Course

Required before discharge. Focuses on managing money after bankruptcy.

8

Discharge

After successfully completing the plan, the court issues a discharge. Remaining eligible debts are eliminated.

How We Help

Document Preparation for Chapter 13

We prepare the forms you tell us to prepare. We do not give legal advice, choose your plan terms, or represent you in court. You provide the facts — we type them accurately into the official forms.

1
STEP 01

You Call

Free evaluation. Tell us your situation.

2
STEP 02

You Provide Info

Income, debts, assets, and plan details.

3
STEP 03

We Prepare

Petition, schedules, plan, and statements.

4
STEP 04

You Review

You check every page. You sign.

5
STEP 05

You File

You file with the court yourself.

START FREE EVALUATION →

Common Questions

Chapter 13 — Quick Answers

How long does Chapter 13 take?

The plan lasts 3 to 5 years. You make monthly payments to the trustee during that time. After the plan is completed, remaining eligible debts are discharged.

Can I keep my house?

Yes — that's one of the main reasons people choose Chapter 13. You catch up on missed mortgage payments through the plan and keep your home. The mortgage itself isn't eliminated, but the arrears are repaid over time.

What if I can't make a payment?

The plan may need to be modified, or the case could be dismissed. If something changes in your financial situation, talk to a licensed attorney about your options — the sooner the better.

How is Chapter 13 different from Chapter 7?

Chapter 7 is a liquidation — debts are eliminated, and non-exempt assets may be sold. Chapter 13 is a repayment plan — you keep everything and repay debts over time. See the Chapter 7 vs 13 comparison.

Do I need to appear before a judge?

You must attend the 341 Meeting of Creditors. You may also need to attend a Hearing on Confirmation, where the judge approves your plan. Most hearings are brief.

Want to Keep Your Home? Chapter 13 May Help.

Call us for a free evaluation. We'll prepare your plan forms — you file.

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