Florida Chapter 13 Bankruptcy

Bankruptcy to Stop Foreclosure in Florida

Pros and cons of Florida Chapter 13 bankruptcy. File Chapter 13 bankruptcy to stop foreclosure in Florida. Who should file for Chapter 13 bankruptcy?

Unlike Florida Chapter 7 bankruptcy which liquidates most debt, Chapter 13 bankruptcy in Florida restructures your debt.

You list your income, living expenses and debts. The Florida bankruptcy trustee comes up with a debt repayment plan appropriate to your circumstances. You make monthly payments to the trustee until the plan is satisfied.The payment amount=all of your "disposable" income (as if such a thing exists). They take your net income (which you must prove, by the way) and subtract "reasonable" (to whom?) living expenses.

Before you submit to this, think carefully about how you feel about being under the thumb of the Florida bankruptcy trustee for the number of years it takes to complete a Chap. 13 bankruptcy.

My Advice: Scroll over and have a peek at the bankruptcy planning guide in the right-hand column. There may be an easier way for you to get out of debt. If the means test is your biggest hurdle, download Bankruptcy Strategies.

Pros & Cons of Chapter 13 Bankruptcy Florida

Cons:

Who Should File Chapter 13 Bankruptcy?

People who wish to keep more assets than a Chapter 7 bankruptcy would allow them to retain.

People who are able to and also wish to repay most or all of their debt.

Here are the rules:

Your unsecured debt (credit card, medical bills, etc.) must total an amount less than $337,000.

Your secured debt (houses, cars, purchases made on store cards) must add up to an amount less than $1,010,000.

Bankruptcy to Stop Foreclosure

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Your Florida Chapter 13 bankruptcy petition must be filed with the court before the foreclosure sale date or you will lose the house.

Take all the foreclosure documents to your Florida bankruptcy attorney well ahead of this date.

It can be better to file Florida Chapter 13 bankruptcy than to let the bank foreclose on the home even if you don't want to keep the house. A foreclosure evicts you from the property but leaves you on the hook for the debt. Bankruptcy can eliminate your obligation to ever repay it.Chapter 13 bankruptcy in Florida treats real properties differently depending on their status.

It won't cram down the 1st mortgage on a homestead property but it can strip off a 2nd mortgage on a Florida homestead and treat it like an unsecured debt. The lien will be removed from the property once the bankruptcy closes.

If you are upside down in a non-homestead investment property, you can use a Florida Chapter 13 bankruptcy to reduce the amount of the mortgage on that house.

Florida bankruptcy laws change periodically. Do not take any important action without first speaking with a Florida bankruptcy lawyer.



Tax Returns After Bankruptcy
What you need to know about tax returns after bankruptcy. How the bankruptcy court handles bankruptcy tax returns. Will you get to keep the money when filing a tax return after bankruptcy?

Go from Florida Chapter 13 Bankruptcy to Florida Bankruptcy Exemptions
Who is eligible to use Florida bankruptcy exemptions. Personal bankruptcy Florida. Florida homestead bankruptcy protection. Are exempt assets protected if you do not file a Florida personal bankruptcy?

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