When debt becomes unmanageable, Chapter 13 bankruptcy offers Florida residents a structured path to regain financial stability without surrendering their assets. Unlike Chapter 7, which liquidates property, Chapter 13 allows you to keep your home, car, and other possessions while following a court-approved repayment plan.
How Chapter 13 Bankruptcy Works
Chapter 13 is a "wage earner's plan" requiring regular income to fund a three-to-five-year repayment schedule. A bankruptcy trustee oversees your case, collecting monthly payments and distributing them to creditors.
Once filed, an automatic stay immediately halts most collection actions, including foreclosure, wage garnishments, and harassing creditor calls.
Eligibility Requirements
- Regular income sufficient to fund the repayment plan
- Debt limits: Secured and unsecured debts each below $2,750,000
- Tax filings: Must have filed all required returns for the past four years
- Credit counseling: Completion of an approved course within 180 days before filing
The Repayment Plan
Plan Duration
Below Florida's median income: three-year plan. Above median: five years.
Priority Debts (Must Be Paid in Full)
- Past-due mortgage payments
- Back taxes
- Child support and alimony
- Attorney fees and trustee costs
Unsecured Debt Treatment
Credit card balances, medical bills, and personal loans may only need to be repaid at a fraction. Some unsecured creditors receive as little as ten cents on the dollar.
Chapter 13 vs. Chapter 7
| Factor | Chapter 13 | Chapter 7 |
|---|---|---|
| Asset protection | Keep all property | Non-exempt assets may be sold |
| Duration | 3 to 5 years | 4 to 6 months |
| Income requirement | Must have regular income | Must pass means test |
| Credit report impact | 7 years | 10 years |
Florida-Specific Exemptions
Florida's homestead exemption is powerful: no cap on equity you can protect if you've lived in your home for at least 1,215 days. Additional exemptions cover retirement accounts, personal property, and wages for heads of household.
See our guide on SNAP benefits and LIHEAP energy assistance for additional support.
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Start Free Assessment →Frequently Asked Questions
Will I lose my home if I file Chapter 13?
No. Chapter 13 is specifically designed to help you keep your home through the repayment plan combined with Florida's unlimited homestead exemption.
Can I file Chapter 13 without an attorney?
While technically possible, it is strongly discouraged. Courts report significantly higher dismissal rates for unrepresented cases.
How much does Chapter 13 cost in Florida?
Filing fee: $313. Attorney fees: $3,500 to $5,000, typically rolled into the repayment plan. Credit counseling: $25-$50.
What debts cannot be discharged?
Most student loans, child support, alimony, court-ordered restitution, recent tax debts, and debts from fraud or willful injury survive bankruptcy.
