Chapter 13 — Reorganization And Repayment

If you are not a candidate for a straight discharge of debts under Chapter 7, you can still qualify for debt reduction and creditor relief through Chapter 13 bankruptcy.

ChildersLaw will help you take maximum advantage of a Chapter 13 filing to protect assets or income and get back on track from a financial setback. Our Gainesville attorney assists debtors in Alachua County and throughout the northern half of Florida.

What Is Chapter 13 Bankruptcy?

If you have substantial debts that cannot be discharged outright, or you are behind on your mortgage, Chapter 13 provides a "timeout" from creditors while you pay back a portion of the debt. You make a fixed payment each month to a bankruptcy trustee for three years or five years. At the end of the plan, your remaining dischargeable debts are forgiven. Filing for Chapter 13 invokes an automatic stay, halting all creditor actions including foreclosure, repossession and wage garnishment.

Do I forfeit assets? Will this ruin my credit? Read our Bankruptcy FAQ .

Are You A Candidate For Chapter 13 Debt Repayment?

We are very aggressive in getting clients into Chapter 7 bankruptcy. However, there are many situations in which Chapter 13 is the only option or the better option. We may recommend Chapter 13 if you:

  • Have nondischargeable debts (student loans, taxes, alimony, child support, fines)
  • Are in arrears on your house payments or car loan
  • Have significant assets not covered by the Chapter 7 exemptions
  • Have too much disposable income to pass the means test

Chapter 13 allows you to catch up on your mortgage over time to avoid foreclosure. It allows you to repay creditors over time without additional interest or penalties. In the end, most debtors will pay only a fraction of the total amount owed — a small price to pay for a fresh start and peace of mind.

Using Chapter 13 To Your Advantage

Jeff Childers has filed and litigated countless bankruptcy cases. He knows how to maximize the unique opportunities under Chapter 13. For example, it may be possible to eliminate a second mortgage if you are "underwater" on the primary loan. Chapter 13 allows a "cram down" of your auto loan if you owe more than the car's current market value. Marital obligations can be modified in a Chapter 13 to give you some breathing room.

We help good people get out of bad situations. To discuss your debt relief options with our experienced lawyer, call ChildersLaw at 352-335-0400 or contact us by email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.