Chapter 13 in Florida: A Powerful Tool to Save Your Assets
Chapter 13 is not a sign of financial failure; it is a federal safety net for property owners. It serves as a court-based program that allows you to cure mortgage defaults over a 3 to 5-year period while retaining ownership of your home. The filing triggers the Chapter 13 automatic stay, which generally halts foreclosure sales and repossession actions upon filing, subject to statutory exceptions. This process gives you the control to repay debts on your terms based on your disposable income.
Is Chapter 13 Your Solution? Key Situations We Address
Many clients come to us when they have regular income but are facing a temporary crisis that threatens their property. We evaluate whether Chapter 13 provides the legal mechanism to protect your property and restructure arrears.
- Foreclosure Defense: You received a foreclosure notice or a court summons from your mortgage lender.
- Repossession Prevention: You are several months behind on car loan payments and fear losing your vehicle.
- Asset Preservation: You wish to protect home in Chapter 13 bankruptcy despite significant equity.
- Co-Signer Protection: You need to shield a co-signer from collection actions on a joint debt.
If these scenarios apply to you, a structured repayment plan offers a viable path back to stability.
How It Differs from Chapter 7
While Chapter 7 focuses on liquidation, Chapter 13 centers on structured repayment and asset retention. Chapter 13 bankruptcy attorneys utilize this chapter to build a protective shield around your property, making it a strong option for individuals who have regular income and wish to retain secured assets.
Unlike the quick discharge of Chapter 7, Chapter 13 involves a long-term commitment to a Chapter 13 repayment plan Florida. It is specifically designed for individuals who earn above the state median income or have non-exempt assets they wish to keep. This chapter provides a legal mechanism to force creditors to accept a cure for arrears over time, something Chapter 7 cannot do.
Our Chapter 13 Process: Advocacy from Filing to Discharge
Building a successful plan requires precise calculation and deep knowledge of the Southern District of Florida’s “Model Plan” requirements. Our team manages every procedural step to ensure your plan is confirmed by the court.
- Strategic Analysis: We calculate your disposable income to ensure your plan meets the “best interest of creditors” test.
- Drafting the Plan: We create a detailed proposal that prioritizes mortgage arrears repayment and secured debts.
- Filing & Protection: We file your petition with the court to trigger the automatic stay immediately.
- 341 Meeting Representation: We advocate for your plan before the Chapter 13 bankruptcy trustee.
- Confirmation Hearing: We defend your plan against creditor objections to secure judicial approval.
We draft plans consistent with the Southern District of Florida Model Plan and local trustee requirements. When defending a plan at a confirmation hearing, we ensure your financial interests remain the priority until the final discharge.
Why Choose Our Firm for Your Complex Chapter 13 Case
Complex reorganization requires a firm that understands the nuances of local trustee practices and federal requirements. Working with experienced Chapter 13 bankruptcy lawyers ensures your plan is feasible and legally sound from day one.
- Strategic Plan Drafting: We structure payments to maximize your retention of income while satisfying federal requirements.
- Trustee Negotiation: We proactively resolve issues with the Chapter 13 bankruptcy trustee to prevent case dismissal.
- Arrears Management: We calculate exact schedules to stop foreclosure Chapter 13 actions effectively.
- SDFL Expertise: We strictly adhere to the Local Bankruptcy Rules (LBRs) of the Southern District of Florida.
- Plan Feasibility: We stress-test your budget to ensure you can maintain the Chapter 13 plan payments for the full term.
One of the key benefits of bankruptcy Chapter 13 is the ability to regain control. Contact us today to discuss how we can save your home.
Areas We Serve
We serve clients across South Florida’s major counties with dedicated local offices. Our attorneys are accessible to residents facing financial crises throughout the region.
- Broward County: Fort Lauderdale, Plantation, Miramar, Hollywood, Sunrise.
- Palm Beach County: West Palm Beach, Boca Raton, Boynton Beach, Delray Beach.
- Miami-Dade County: Aventura, Miami Gardens, North Miami Beach.
Visit one of our convenient locations to start your asset protection journey with a trusted local team.
FAQ
What happens if my income changes while I'm on a Chapter 13 repayment plan?
If your income rises or falls significantly, we may file a motion to modify your plan with the court. This proactive step ensures your monthly payments remain affordable based on your new budget and strictly comply with federal bankruptcy laws regarding disposable income.
Can I keep my car in Chapter 13 if I'm behind on the loan payments?
Yes, Chapter 13 allows you to keep your vehicle while catching up on missed payments through the consolidated plan. Additionally, we can often lower your interest rate or reduce the total loan balance to the car's current market value if you purchased it more than 910 days ago.
What happens if I miss a Chapter 13 plan payment?
Missing a payment puts your case at serious risk of dismissal by the trustee. If you anticipate a problem, contact us immediately. We can often negotiate a cure for the default or file a modification to the plan, preventing the court from closing your case and lifting the stay.
How is my monthly Chapter 13 payment amount determined?
Your payment is strictly calculated based on your disposable income, secured debt arrears, and priority debts like taxes. We work to ensure the amount covers all mandatory obligations while still leaving you enough money to cover reasonable living expenses for you and your family.
Can Chapter 13 help with IRS debt or other tax obligations (in certain cases)?
Yes, Chapter 13 is an excellent tool for tax issues. It allows you to repay priority tax debts interest-free over the 3-5 year plan. Furthermore, older income tax debts that meet specific timing criteria may sometimes be treated as unsecured debt and discharged entirely at the end.
Can I include past-due HOA fees or condo assessments in a Chapter 13 plan
Yes, past-due HOA assessments can be included in your repayment plan to stop foreclosure actions. However, it is critical that you remain current on all new regular HOA fees that come due after your filing date to stay in full compliance with the bankruptcy court's requirements.
What happens to co-signed debts if I file Chapter 13 and the co-signer does not?
The "co-debtor stay" in Chapter 13 protects your co-signer from collection actions as long as your plan pays the debt in full. This offers a major advantage over Chapter 7, where creditors can immediately pursue the co-signer for the balance once your own liability is discharged.