Chapter 13 Bankruptcy in Florida: Repayment Plans

Chapter 13 is reorganization for individuals with regular income: you repay some or all of your debts through a court-approved plan over 3 years (if below the state median income) or generally 5 years (if at or above median), with no plan exceeding 5 years (11 U.S.C. § 1322(d), § 1325). It lets you catch up on a mortgage or car and keep property. Debt limits apply (11 U.S.C. § 109(e)).

This is general information, not legal advice. Whether a repayment plan fits your situation depends on your income and debts — talk to a Florida bankruptcy attorney.

Chapter 13 is a reorganization for individuals with regular income. Instead of liquidating property like Chapter 7, you repay some or all of your debts through a court-approved plan.

The repayment plan

You propose a plan to pay creditors over time:

3 years if your income is below the Florida median income; or
generally 5 years if your income is at or above the median.

No plan can last longer than 5 years (11 U.S.C. § 1322(d), § 1325).

Why people choose Chapter 13

The biggest advantage is keeping property while catching up. A Chapter 13 plan lets you cure a past-due mortgage or car loan over the life of the plan and keep the home or vehicle (11 U.S.C. § 1322). That makes it a common choice for filers who are behind on secured debts but have steady income.

Who can qualify

Chapter 13 has debt limits — you can’t owe more than certain amounts to be eligible (11 U.S.C. § 109(e)). Those dollar figures are adjusted periodically, so confirm the current limits before relying on them.

Chapter 7 or Chapter 13?

If your income is low enough to pass the means test and you don’t need to catch up on secured debts, Chapter 7 may be simpler. Either way, filing triggers the automatic stay, and Florida’s exemptions still protect your property.

To get matched with a local Florida bankruptcy attorney, connect with a lawyer.

Frequently asked questions

How long does a Chapter 13 plan last?

Generally 3 years if your income is below the Florida median, or 5 years if at or above median. No plan can exceed 5 years (11 U.S.C. § 1322(d), § 1325).

Can Chapter 13 help me save my home?

Yes. A Chapter 13 plan lets people with regular income catch up on a past-due mortgage or car loan over time while keeping the property (11 U.S.C. § 1322).

Are there limits on who can file Chapter 13?

Yes. Chapter 13 has debt limits to qualify (11 U.S.C. § 109(e)). Those dollar figures are adjusted periodically — confirm the current limits before relying on them.

Related guides

Chapter 7 Bankruptcy in Florida Chapter 7 is liquidation bankruptcy: a trustee can sell nonexempt property to pay creditors, and you receive a discharge releasing personal liability for most unsecured debts (11 U.S.C. § 727). You must pass the means test and complete credit counseling. Because Florida's exemptions protect typical property, most Florida filers keep everything they own.

Florida Bankruptcy Exemptions Florida opted out of the federal bankruptcy exemptions (Fla. Stat. § 222.20), so Florida filers use Florida exemptions. The homestead is exempt with no dollar cap on value (limited by acreage), though a federal rule caps recently acquired homestead equity. Florida also exempts a motor vehicle, head-of-family wages, and a wildcard for personal property if you don't use the homestead exemption.

The Automatic Stay & Discharge in Florida Filing bankruptcy triggers the automatic stay (11 U.S.C. § 362) — an immediate halt to most collection, including lawsuits, wage garnishment, repossession, and foreclosure. A discharge (11 U.S.C. § 524, § 727) permanently bars creditors from collecting discharged debts. But some debts are non-dischargeable (11 U.S.C. § 523): most recent taxes, student loans (absent undue hardship), child support and alimony, and debts from fraud or willful/malicious injury.

The Bankruptcy Means Test in Florida The Chapter 7 means test (11 U.S.C. § 707(b)) compares your current monthly income to the median income for your household size in Florida. Below median, you generally qualify for Chapter 7. Above median, a disposable-income calculation may create a presumption of abuse, pushing you toward Chapter 13. The U.S. Trustee updates the Florida figures periodically — check the current numbers.

Chapter 13 Bankruptcy in Florida