Chapter 13 Bankruptcy in Sarasota, Florida
Reorganization bankruptcy to restructure your debts into a manageable repayment plan.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a reorganization bankruptcy in which you keep your assets but agree to repay your debts according to a court-approved repayment plan. The plan typically runs for 3–5 years, during which you make monthly payments to a bankruptcy trustee who distributes funds to creditors.
Chapter 13 is ideal for people who have regular income and want to keep their home, car, or other property. It also allows you to catch up on past-due mortgage payments through the repayment plan, which can prevent foreclosure. Many creditors cannot pursue collection actions once a Chapter 13 plan is in effect.
After successfully completing your repayment plan and meeting all obligations, any remaining eligible debt is discharged. Chapter 13 remains on your credit report for 7 years, and like Chapter 7, it can provide significant financial relief while preserving your assets.
The Chapter 13 Repayment Plan
Your Chapter 13 repayment plan is customized based on your income, necessary expenses, and types of debts. The plan prioritizes certain debts differently:
Priority Debts (Paid First)
Child support, alimony, recent income taxes, and certain other obligations that cannot be discharged.
Secured Debts (Mortgage, Car Loan)
You must keep current on these or pay any arrearages through the plan. This allows you to keep your home and vehicle.
Unsecured Debts (Credit Cards, Medical Bills)
Creditors receive whatever you can afford to pay after priority and secured debts are addressed.
We help calculate a realistic and sustainable repayment amount and work with the trustee to ensure the plan is approved by the bankruptcy court.
Key Benefits of Chapter 13 Bankruptcy
Keep your home, car, and other property while paying down debt
Stop foreclosure through the automatic stay and catch up on back payments
Stop creditor harassment and collection calls
Potentially reduce credit card and other unsecured debt significantly
Create a structured, manageable repayment plan you can afford
Protect your discharged debts from future collection efforts
Questions About Chapter 13 Bankruptcy
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