How Chapter 13 Bankruptcy Works for People With Regular Income in Florida

For many Florida residents struggling with debt, filing for Chapter 13 bankruptcy offers a structured path toward financial stability without giving up important assets. Unlike Chapter 7 bankruptcy, which liquidates non-exempt property to repay creditors, Chapter 13 allows individuals with regular income to create a repayment plan tailored to their financial situation. At Bankruptcy Lawyers Miami, we assist individuals throughout Miami-Dade County in navigating this process.

Who Qualifies for Chapter 13 Bankruptcy?

Chapter 13 is designed for individuals who have a consistent source of income. To qualify, you must demonstrate that your income is steady enough to support a repayment plan lasting three to five years. This option can be especially helpful for people who are behind on mortgage payments, car loans, or other secured debts, as it allows them to catch up over time while protecting their property from foreclosure or repossession.

How the Repayment Plan Works

When filing for Chapter 13, you will propose a repayment plan that details how you intend to pay back creditors. The plan is based on your income, expenses, and the types of debts you owe. Priority debts such as taxes and child support must be paid in full, while unsecured debts like credit card balances may be partially discharged after the repayment period. Once your plan is approved by the bankruptcy court, you will make monthly payments to a trustee, who then distributes the funds to your creditors.

Benefits of Chapter 13 Bankruptcy

• Stops foreclosure proceedings and gives homeowners a chance to bring mortgage payments current.
• Protects assets that may otherwise be at risk in Chapter 7 bankruptcy.
• Consolidates debt into one manageable monthly payment.
• Offers debt discharge for unsecured debts after successful completion of the repayment plan.

Life After Chapter 13

Completing a Chapter 13 plan provides the opportunity for a fresh financial start. While bankruptcy may impact credit scores initially, many individuals find that responsibly completing their plan helps rebuild financial stability and creditworthiness over time.

At Bankruptcy Lawyers Miami, we provide legal guidance to help Miami-Dade County residents understand their options and successfully manage the Chapter 13 process. With the right strategy, Chapter 13 can be the key to regaining financial control while protecting your assets.