Chapter 13 Bankruptcy Florida: Pros and Cons

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A form of reorganization bankruptcy, Chapter 13 can offer several benefits to those who choose this filing, including a lesser impact on your credit score. However, you may want to be aware of potential negative aspects to this filing, such as the length of time entailed in Chapter 13 bankruptcy cases.

We can help you understand your filing options and choose the route that suits your situation. Depending on the details of your case, you may want to consider other types of bankruptcy filings, such as Chapter 7 or Chapter 11.

What You Should Know About Chapter 13 Bankruptcy in Florida

In addition to being known as a type of reorganization bankruptcy, Chapter 13 is also known as a wage earner’s plan, according to the U.S. Courts. Individuals and business owners may file for Chapter 13. Those who are eligible for this kind of filing must:

  • Show that they earn regular wages
  • Make payments on their debts using their future wages over a three to five-year period

In addition to your petition for bankruptcy, you will be asked to submit documentation such as:

  • Monthly income statements
  • Commitment period calculations
  • Financial affairs statements
  • Asset details
  • Tax returns
  • Dispensable income details
  • And more

Those who file for Chapter 13 can expect to undergo credit counseling and submit a proposal detailing their plan to repay creditors, according to the Florida Bar.

To consult with an experienced bankruptcy lawyer today, call 855-780-9986

Pros of Chapter 13

If you make a regular income, you may want to consider the benefits of this type of filing. Some of the main reasons you may want to consider Chapter 13 include:

  • Manageable debt recovery: Because Chapter 13 allows you to make payments on your debts over a three to five-year period, your debt can feel less overwhelming.
  • Less of an impact on your credit score: When you file for Chapter 13, this will stay on your credit report for seven years, as opposed to 10 years with Chapter 7 filings.
  • Mortgage catch-up: If you are in a foreclosure process, filing for Chapter 13 will stop that process and allow you to catch up on payments.

Cons of Chapter 13 Bankruptcy

While the idea of completing the bankruptcy process with less damage to your credit score may sound appealing, there are a few reasons why Chapter 13 may have drawbacks:

  • Chapter 13 takes longer. If you would like to discharge your debts as soon as possible, Chapter 13 may not be the ideal route to take. Chapter 7 bankruptcy, on the other hand, only takes a matter of months.
  • Wage requirements may exclude you. Regular wages are required in order to take advantage of Chapter 13 bankruptcy. If you earn wages irregularly, this may not be the filing that’s right for you.

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Chapter 7 Bankruptcy May Be Right for You

If Chapter 13 doesn’t seem to be the right fit for your situation, you may have other options available.

For instance, if you meet the income requirements for Chapter 7, you may want to consider this option. A type of liquidation bankruptcy, your assets will be assessed and potentially sold as a means of paying your creditors. As noted, the process of Chapter 7 typically takes months rather than years.

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How We Can Help You with Your Florida Bankruptcy Case

Bankruptcy may seem like a daunting undertaking, but you don’t have to be alone in your case. We can help you through every step of the process, including:

  • Explaining the pros and cons of Chapter 13 bankruptcy
  • Helping you understand which type of bankruptcy makes sense for you
  • Representing your interests during bankruptcy proceedings
  • Ensuring all paperwork is filed appropriately and on time
  • Helping protect your rights during the bankruptcy process
  • Offering guidance and answers to all of your questions
  • And more

We know that beginning the process of a bankruptcy filing can be intimidating, and for that reason, we offer free case reviews to those seeking help with bankruptcy. There is no risk involved in calling us today.

Call Bogin, Munns & Munns for a Free Case Review

At Bogin, Munns & Munns, we have been representing clients in Central Florida for decades. We will bring our experience to bear as we advise you on your next possible steps. What’s more, our lawyers have received the coveted Martindale-Hubbell rating, which signifies our team’s high ethical standards.

Learn more about how to get started on your bankruptcy case today. You can take advantage of a free case review by calling someone from our team. Our conversation is confidential, and there is no obligation.

Call or text 855-780-9986 or submit our Consultation Request form today



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