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Chapter 13 Bankruptcy
Repayment Plan & Asset Protection

Keep your home, car, and other property while repaying your debts through a structured 3-to-5-year plan. Our Miami bankruptcy attorneys help you build a manageable path to financial stability.

Free Chapter 13 Consultation

Chapter 13 bankruptcy, often called a "wage earner's plan," allows individuals with regular income to develop a court-approved repayment plan to pay back all or a portion of their debts over three to five years. Unlike Chapter 7 liquidation, Chapter 13 lets you keep your property while catching up on missed payments.

Chapter 13 repayment plan Miami

Chapter 13 provides a structured framework for individuals who have regular income but are struggling to keep up with their financial obligations. Instead of liquidating assets, you propose a repayment plan that consolidates your debts into a single monthly payment made to a bankruptcy trustee, who then distributes the funds to your creditors according to the plan.

Eligibility

Who Qualifies for Chapter 13?

Chapter 13 is designed for individuals with regular income who want to repay their debts while keeping their property. Several requirements must be met.

Regular Source of Income

You must have a regular source of income sufficient to make monthly plan payments. This can include wages, salary, self-employment income, Social Security benefits, pension income, or other consistent earnings.

Debts Within Statutory Limits

Your total secured and unsecured debts must fall below the current statutory limits. These thresholds are adjusted periodically. If your debts exceed the limits, Chapter 11 may be an alternative option.

Current on Tax Filing Obligations

You must have filed all required federal and state tax returns for the four years preceding your bankruptcy filing. Failure to file tax returns can result in dismissal of your case.

Credit Counseling Completed

You must complete an approved credit counseling course within 180 days before filing. A second financial management course is required before receiving your discharge at the end of the plan.

Comparison

Chapter 13 vs. Chapter 7

Understanding how Chapter 13 compares to Chapter 7 helps you choose the right path for your financial situation.

Chapter 13 Advantages

  • Keep your home and cure mortgage arrears
  • Keep your car and catch up on payments
  • Cramdown auto loans to vehicle value
  • Strip junior liens from your home
  • Protect co-signers from collection
  • No means test income requirement
  • Only 7 years on credit report (vs. 10)

Chapter 7 Differences

  • Non-exempt assets may be liquidated
  • Cannot cure mortgage arrears
  • Cannot cramdown auto loan balances
  • No protection for co-signers
  • Must pass the means test
  • Stays on credit report for 10 years
  • Cannot strip junior liens
The Process

Chapter 13 Bankruptcy Timeline

The Chapter 13 process spans three to five years. Here is what to expect at each stage.

1

Free Consultation & Financial Analysis

Week 1

Meet with a Lacayo Law bankruptcy attorney to review your income, debts, assets, and goals. We determine whether Chapter 13 is the right strategy and begin calculating your projected plan payment.

2

Credit Counseling & Petition Preparation

Weeks 1-3

Complete the required credit counseling course. Our team gathers financial documents and prepares your petition, schedules, and proposed repayment plan for court filing.

3

Filing & Automatic Stay

Week 2-3

We file your Chapter 13 petition and proposed plan with the bankruptcy court. The automatic stay takes effect immediately, stopping foreclosures, repossessions, wage garnishments, and all creditor collection efforts.

4

341 Meeting & Plan Confirmation

30-90 Days After Filing

Attend the 341 meeting of creditors, then proceed to the plan confirmation hearing. The court reviews whether your plan meets all legal requirements, is feasible, and treats creditors fairly. Your attorney advocates for plan approval.

5

Plan Payments & Compliance

3-5 Years

Make your monthly plan payments to the Chapter 13 trustee, who distributes funds to your creditors. Continue making regular mortgage and other direct payments as required. Our team monitors your case throughout the plan period.

6

Discharge & Financial Freedom

End of Plan Period

Upon successful completion of all plan payments and the required debtor education course, the court enters a discharge order. Remaining qualifying unsecured debts are eliminated, and you emerge debt-free with your property intact.

Evaluation

Chapter 13: Pros & Cons

Advantages

  • Keep your home, car, and all other property
  • Stop foreclosure and cure mortgage arrears over time
  • Single consolidated monthly payment
  • Potential to strip junior liens and cramdown auto loans
  • Co-signers are protected from creditor collection
  • Shorter credit report impact than Chapter 7

Considerations

  • Requires 3-5 years of ongoing plan payments
  • Must have sufficient regular income to fund the plan
  • Debt limits may exclude high-debt filers
  • All disposable income goes toward plan payments
  • Failure to make payments can result in case dismissal
  • Cannot take on new debt without court approval during the plan
Common Questions

Chapter 13 Bankruptcy FAQ

What is a Chapter 13 repayment plan?

A Chapter 13 repayment plan is a court-approved proposal that allows you to repay all or a portion of your debts over three to five years using your regular income. The plan consolidates your debts into a single monthly payment made to a bankruptcy trustee, who distributes the funds to creditors according to the plan's terms. Priority debts like taxes and child support must be paid in full, while unsecured creditors receive a percentage based on your disposable income.

Can I keep my home if I file Chapter 13?

Yes. One of the primary advantages of Chapter 13 is the ability to keep your home and stop foreclosure. The repayment plan allows you to spread your missed mortgage payments over the plan period (three to five years) while resuming regular monthly mortgage payments going forward. As long as you stay current on both plan payments and ongoing mortgage obligations, your lender cannot foreclose on your home.

How long is a Chapter 13 repayment plan?

Chapter 13 repayment plans last either three or five years. If your household income is below the Florida median for your family size, you may qualify for a three-year plan. If your income exceeds the median, the plan must last the full five years. In either case, your monthly payment amount is based on your calculated disposable income after allowable expenses.

What are the debt limits for Chapter 13?

Chapter 13 has statutory debt limits that are adjusted periodically by the courts. Your combined secured and unsecured debts must fall below the current threshold to be eligible. These limits change regularly, so it is important to consult with a bankruptcy attorney who can determine whether your debt levels qualify. If your debts exceed the limits, Chapter 11 reorganization may be a viable alternative.

What happens to my car in Chapter 13?

Chapter 13 allows you to keep your vehicle while catching up on any past-due payments through the repayment plan. If you purchased your vehicle more than 910 days before filing, you may be able to reduce the loan balance to the current fair market value of the car through a "cramdown." You may also be able to reduce the interest rate on your auto loan, potentially saving you significant money over the life of the plan.

Protect Your Property, Repay Your Debts

Take the first step toward a manageable repayment plan. Contact our experienced Miami bankruptcy attorneys for a free, confidential consultation.

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