Sometimes, a client will say, “I can’t do a Chapter 13 Bankruptcy, I have too much debt, there’s no way I can pay all that back!”  

Generally speaking, Chapter 13 is for people for:

-Whose household income will not allow them to file a Chapter 7 and/or whose assets are over what Florida exemptions allow you to keep in Chapter 7.

-Chapter 13 is great for people who are behind on their mortgage or car payments and they want to play catch up over a period of 36-60 months.

-Chapter 13 can sometimes stop interest and penalties on IRS debt, and save the debtor money by paying the IRS debt through a Chapter 13 bankruptcy.

-Chapter 13 is a good option for stripping Junior liens on Real Property if the value of the real property is less than you owe on the First Mortgage.

-A Chapter 13 Bankruptcy is not for the debtor to pay back 100% of their debt. This bankruptcy is designed to allow the debtor to pay back a portion of their debt given the analysis of the unsecured debt, secured debt in arrears, what their net disposable monthly income is, and what the value of their assets are. A lot of factors come into play.

I realize that is a mouth full. Seek legal advice to go over your facts and your options. One Chapter 13 filing does not fit all.

Sherry Ellis
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