What Can Chapter 13 Bankruptcy Do for You in Florida?

Most people think bankruptcy means wiping out debt. Chapter 13 works differently. It's a court-supervised repayment plan that lets you keep your property while you fix what went wrong.

The first thing I ask a new client isn't "how much do you owe?" It's "what are you trying to protect?" Usually the answer is a house or a car, and that answer tells me which chapter fits.

What Is Chapter 13 Bankruptcy?

Chapter 13 is a reorganization bankruptcy for individuals with regular income. You pay a trustee monthly under a plan that runs three years if your income is below the Florida median and five years if it's above (11 U.S.C. § 1322(d)).

You don't repay everything. Priority debts, like certain recent taxes and support obligations, get paid in full. Secured debts you're keeping get paid through the plan. Unsecured creditors, like credit cards and medical bills, get your disposable income over the plan term, and never less than they'd get in Chapter 7. Qualifying balances left at the end are discharged.

Chapter 13 Can Help Stop a Foreclosure

Here's the case I see most: a layoff or a medical bill puts you $20,000 behind on the mortgage. Your income is back and you can afford the regular payment, but not the lump sum.

Filing triggers the automatic stay (11 U.S.C. § 362(a)), which stops the foreclosure. The plan then lets you pay the missed payments over up to five years while you resume your regular payments (§ 1322(b)(5)).

The deadline that matters: your right to cure the default on your home runs only until the foreclosure sale (§ 1322(c)(1)). Once the house is sold, that option is gone. If you have a sale date, call me first. Learn more about stopping foreclosure with bankruptcy in Florida.

Chapter 13 Can Help You Keep Your Car

If you're behind and facing repossession, the automatic stay stops the repo, and the plan spreads the missed payments over time.

Chapter 13 also offers something Chapter 7 doesn't: a cramdown. If you bought the car more than 910 days (about two and a half years) before filing, you can cut the loan down to the car's current value, and the rest is treated as unsecured debt (11 U.S.C. § 1325(a), hanging paragraph). Inside 910 days, you pay the full loan. When a client is a few weeks short of the line, I check the purchase date before we file. See our full guide on stopping vehicle repossession with bankruptcy.

Chapter 13 Can Help With Wage Garnishment

First question: should this garnishment be happening at all? Under Fla. Stat. § 222.11(2)(a), a head of family (someone providing more than half the support for a child or other dependent) with disposable earnings of $750 a week or less is exempt from garnishment. Above $750, you're still exempt unless you signed a written waiver. You have to claim the exemption, though. It isn't automatic.

If you don't qualify, or you waived it, filing Chapter 13 stops the garnishment through the automatic stay, and the plan handles the underlying debt. Read more about stopping wage garnishment in Florida.

Chapter 13 Can Address Debts That Chapter 7 Can't

Chapter 7 is fast, but it gives you no time to catch up on a mortgage or car loan. Here's the rule I use: if you're current on your secured debt, have little equity, and pass the means test (§ 707(b)), Chapter 7 is usually faster and cheaper. If you're behind on a home or car, have equity to protect, owe priority taxes, or earn too much for Chapter 7, Chapter 13 is usually the better tool. Compare Chapter 7 and Chapter 13 in detail.

There's a ceiling. To file Chapter 13 you need unsecured debts under $526,700 and secured debts under $1,580,125 (§ 109(e), for cases filed April 1, 2025 through March 31, 2028).

Talk to Me Before the Deadline Passes

Foreclosure sales, repossessions, and garnishments run on clocks, and the worst calls I get come after the clock ran out. If you have a sale date, a garnishment notice, or a repo letter, call me at 321-541-6845 or use the form on this page. I'll tell you which chapter fits, or whether you need bankruptcy at all. A consultation doesn't commit you to filing.

Stewart Law represents individuals and families throughout Florida, from our office in Melbourne on the Space Coast to clients in every part of the state.

Frequently Asked Questions About Chapter 13 in Florida

Want to see what your own Chapter 13 payment might look like? Try our Chapter 13 payment estimator — enter your income, expenses, mortgage arrears, and priority debt and get a rough monthly figure in about two minutes.

For a full overview of how Chapter 13 works in Florida, visit our Chapter 13 bankruptcy page or our Florida Bankruptcy FAQ.