Florida Debt Payment Plan

Chapter 13 bankruptcy is basically a reorganization of your debts in which some debts are repaid in full, some are repaid partially and some aren't repaid at all.

I'm Joel Gross, a bankruptcy lawyer in Clermont, Florida. If you can't afford to pay your debts, I offer a free initial consultation to evaluate your situation and determine if Chapter 13 bankruptcy would be a solution for your debt problems.

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Reasons to File Chapter 13 Bankruptcy

There are four main reasons why Chapter 13 bankruptcy may be a better option for you than Chapter 7 bankruptcy:

• You make too much money to file Chapter 7 bankruptcy.
• You have significant assets you don't want to lose such as a boat, motorcycle or a new car that is paid off.
• You have significant arrearages on your home mortgage. If your bank is unwilling to work with you, then you can file Chapter 13 bankruptcy to force the bank into a repayment plan.
• You owe the IRS. While in a Chapter 13 plan, the IRS is not allowed to charge you interest or penalties while you repay the taxes.

If you have a second mortgage on your home, and you are underwater on your first mortgage, you can also strip the lien from the second mortgage, making it an unsecured debt.

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Reducing Your Debt to a Manageable Amount

Secured debts, such as your home, have to be repaid in full. If you have a car, motorcycle or boat that you owe money on, you may be able to reduce the amount you owe to the current value of the vehicle. For unsecured debts such as credit card bills, hospital bills and payday loans, you pay only what you can afford, usually it's a small percentage.

Chapter 13 debt reorganization can last from three to five years. Here are some examples Chapter 13 payment plans for unsecured debts:

Pay off this much debt:	For as low as this monthly payment*
$15,000 in debt	$28 per month for five years
$20,000 in debt	$37 per month for five years
$30,000 in debt	$55 per month for five years
$50,000 in debt	$92 per month for five years

* Represents a 10 percent Chapter 13 plan filed in the Orlando division, Middle District of Florida under Title 11 U.S.C. 1301. Results may vary depending on your individual circumstances. Creditor action may be temporary. Relief may not be granted under every circumstance.

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