Thinking About Chapter 13 Bankruptcy in Florida? Here Are 10 Must-Know Facts for 2025!

For many Floridians dealing with excessive debt, Chapter 13 bankruptcy provides an alternative to Chapter 7. Known as a wage earner's plan, Chapter 13 allows individuals with regular income to reorganize their debts and repay them over time. Before deciding if it's right for you, it's important to understand how it works—especially in Florida. Here are the top 10 facts about Chapter 13 bankruptcy in Florida you should know in 2025:

1. Chapter 13 Helps You Keep Your Assets

Unlike Chapter 7, where some assets could be liquidated, Chapter 13 allows you to keep your property, including your home and car, as long as you make regular payments under a court-approved repayment plan. 

2. It Involves a 3 to 5-Year Repayment Plan

In Chapter 13, your debts are reorganized into a repayment plan that lasts three to five years, depending on your income level. Over this time, you pay creditors using your disposable income.

3. It's Perfect for Stopping Foreclosure

Chapter 13 in Florida has many benefits but its ability to stop foreclosure and allow you to catch up on missed mortgage payments. This makes it a strategic choice for homeowners in danger of losing their property.

4. You Must Have a Consistent Income

To qualify for Chapter 13, you need consistent income that can support both your living expenses and your repayment plan. The court checks your revenue sources to make sure you can fulfill your responsibilities.

5. Some Debts Must Be Paid in Full

Some debts, such as child support, alimony, and certain tax obligations, are classified as priority debts. Your Chapter 13 repayment plan must cover these in full.

6. Your Creditors Must Be Treated Fairly

The court requires that creditors be treated fairly in your repayment plan. You can't favor one over the other without a valid legal reason. To proceed, the bankruptcy court has to approve the plan. 

7. It Offers Protection from Collection Efforts

Just like Chapter 7, Chapter 13 starts an automatic stay that stops collection calls, lawsuits, wage garnishments, and foreclosure action proceedings as soon as you file.

8. Not All Debts Are Discharged

At the end of your repayment period, many remaining unsecured debts may be discharged. However, student loans, recent taxes, and some legal penalties still have to be paid. 

9. Finding the Right Legal Help Is Important

Going through Chapter 13 could be difficult. Many people search online for "chapter 13 attorneys near me" or consult bankruptcy attorneys in Orlando Florida to ensure they follow the right steps. Choosing from trusted bankruptcy attorneys in Orlando FL can help you to create a reasonable strategy and follow court regulations. 

Whether you're looking for attorneys for bankruptcy near me or a seasoned bankruptcy 13 attorney, it's important to work with professionals who understand both federal and Florida-specific regulations.

10. It Remains on Your Credit Report for 7 Years

A Chapter 13 bankruptcy remains on your credit report for seven years from the filing date. While this can affect your ability to borrow or lease, many people start restoring credit soon after completing their plan.

Conclusion

Chapter 13 bankruptcy in Florida is a structured, court-supervised way to take control of your finances without losing your assets. It's especially helpful for homeowners, those with consistent income, or anyone needing time to catch up on debts. By working with knowledgeable bankruptcy attorneys in Orlando, FL, you can better understand your options and make informed decisions about your financial future.