The Florida Bar

Chapter 13 Banktruptcy

December 8, 2022

Chapter 13 Bankruptcy allows an individual or business to keep their property, and they pay most or all of your debts back over a three to five-year period. However, Chapter 13 Bankruptcy isn’t for everyone. Because Chapter 13 requires that you repay your debts, you must prove to the Court that you can meet these payment obligations.

How does Chapter 13 Bankruptcy work?

Chapter 13 Bankruptcy requires you to fully repay certain debts. These are called “priority debts.” Priority debts include things like child support, alimony, wages you owe to employees, and certain tax obligations.

Your repayment plan must also include monthly payments for secured debts, such as your automobile loans and your mortgage. At the end of the month, any disposable income you have left will go towards repaying unsecured loans. Unsecured loans are things such as credit cards and medical bills.

Changes may occur in this area of law. The information provided is brought to you as a public service, and is intended to help you better understand the law in general. It is not intended to be legal advice regarding your particular problem or substitute for the advice of a lawyer.