Understanding Chapter 13 Bankruptcy
- McMann, P.A.
- Jul 17
- 6 min read
Understanding Chapter 13 Bankruptcy: Repayment Plan in Polk County, Florida
Are you struggling with debt but want to keep your home or car? Chapter 13 bankruptcy, known as a “wage earner’s plan,” could be the solution. This legal process allows individuals with regular income to repay their debts over 3 to 5 years while protecting their assets.
For residents of Lakeland, Winter Haven, Bartow, or Davenport in Polk County, Florida, filing Chapter 13 at the Sam M. Gibbons United States Courthouse in Tampa offers a structured path to financial stability.
This guide explains what Chapter 13 is, who qualifies, how it works, and its
benefits, with a real-life story to make it relatable.
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a reorganization process under Chapter 13 of the U.S. Bankruptcy Code that enables individuals with steady income to propose a repayment plan to creditors. Unlike Chapter 7 bankruptcy, which may involve selling non-exempt assets to discharge debts, Chapter 13 lets you keep your property while making affordable monthly payments to a trustee over 3 to 5 years. At the end of the plan, any remaining eligible debts are discharged, giving you a fresh start.
Primary Goal: Repay debts over time while retaining assets like your home or car.
Ideal For: Those with regular income facing foreclosure, behind on mortgage or car payments, or wanting to protect non-exempt property.
Local Context: In Polk County, cases are filed at the Tampa Division of the U.S. Bankruptcy Court for the Middle District of Florida, located at 801 N. Florida Avenue, Tampa, FL 33602.
Chapter 13 is often chosen by individuals who want to avoid
the asset liquidation required in Chapter 7
Who Qualifies for Chapter 13 Bankruptcy?
To file for Chapter 13 in Florida, you must meet specific eligibility criteria:
Regular Income: You need a consistent income source (e.g., wages, self-employment, or benefits) to fund your repayment plan.
Debt Limits: As of 2025, your unsecured debts (e.g., credit cards, medical bills) must be less than $419,275, and secured debts (e.g., mortgages, car loans) must be less than $1,257,850. These limits are adjusted periodically, per Florida Legal Advice.
No Recent Bankruptcy: You cannot have received a Chapter 7 discharge in the last 4 years or a Chapter 13 discharge in the last 2 years.
Residency: You must have lived in Florida for at least 2 years to use Florida’s exemptions, which protect assets during bankruptcy.
Unlike Chapter 7, Chapter 13 does not require a means test
but your income must be sufficient to cover living expenses and plan payments.
How Does Chapter 13 Bankruptcy Work?
The Chapter 13 process is structured to balance debt repayment with asset protection. Here’s how it works:
Credit Counseling: Before filing, complete a credit counseling course from an approved agency, as required by the U.S. Bankruptcy Court. This must be done within 180 days of filing.
File the Petition: Submit a bankruptcy petition, repayment plan, and supporting documents to the Tampa Division. The filing fee is $313, payable in installments if needed.
Automatic Stay: Filing triggers an automatic stay, immediately halting creditor actions like foreclosure, repossession, or harassing calls.
Meeting of Creditors: Attend a 341 meeting (often at the Timberlake Annex, 501 E Polk St, Tampa), where the trustee and creditors review your plan and finances. This typically lasts 5–10 minutes.
Repayment Plan: Make monthly payments to the trustee, who distributes funds to creditors over 3 to 5 years. The plan duration depends on your income:
Below Florida’s median income (~$60,000 for a single person in 2025): 3 years, unless extended for cause.
Above median income: 5 years, per U.S. Courts.
Discharge: After completing your plan, remaining eligible debts (e.g., unsecured debts like credit cards) are discharged.
The repayment plan prioritizes secured debts (e.g., mortgages) and priority debts (e.g., taxes, child support), with unsecured creditors often receiving partial repayment, as explained by Florida Bar’s Consumer Pamphlet.
Benefits of Chapter 13 Bankruptcy
Chapter 13 offers unique advantages, especially for Polk County residents:
Stop Foreclosure: Halt foreclosure proceedings and catch up on missed mortgage payments over the plan’s duration, a key benefit highlighted by Alper Law.
Protect Assets: Keep non-exempt property that might be sold in Chapter 7, using Florida’s exemptions like the homestead exemption (unlimited for qualifying residents) and $5,000 vehicle exemption, per Florida Statutes.
Repay Priority Debts: Pay back taxes, child support, or alimony over time without accruing additional interest.
Reduce Interest Rates: Lower interest rates on secured debts like car loans, reducing overall payments.
Credit Impact: Chapter 13 stays on your credit report for 7 years, compared to 10 years for Chapter 7, offering a shorter recovery period, as noted by Bogin, Munns & Munns.
These benefits make Chapter 13 a powerful tool for those with regular income
who want to retain their assets while managing debt.
Lisa’s Story: Saving Her Home in Lakeland
Lisa, a 35-year-old teacher in Lakeland, faced financial hardship after unexpected medical expenses left her unable to cover her mortgage payments. With foreclosure looming, she felt overwhelmed and searched “Chapter 13 bankruptcy near me” on Google. She found a Polk County attorney who explained how Chapter 13 could help.
The attorney helped Lisa file her petition at the Tampa federal courthouse. The automatic stay immediately stopped the foreclosure, giving her breathing room. Lisa proposed a 3-year repayment plan based on her income, which was below Florida’s median. She made monthly payments to the trustee, catching up on her mortgage while paying a portion of her credit card debt. After three years, her mortgage was current, and her remaining unsecured debts were discharged. Lisa kept her home and regained financial stability, grateful for the second chance Chapter 13 provided.
Lisa’s story shows how Chapter 13 can be a lifeline for Polk County
residents facing foreclosure or struggling with secured debts.
Why Choose Chapter 13 in Polk County?
Polk County’s population, estimated at 780,000 in 2024, has grown rapidly, bringing economic opportunities but also financial pressures like rising living costs. Chapter 13 is particularly suited for this region because:
Foreclosure Relief: With homeownership common in Lakeland and Winter Haven, Chapter 13 helps residents save their homes.
Local Expertise: Attorneys familiar with the Tampa Division’s procedures streamline the filing process.
Asset Protection: Florida’s generous exemptions ensure you keep essential assets, as detailed in Florida Statutes.
You can find qualified attorneys through Justia
or the Florida Bar Lawyer Referral Service.
Considerations Before Filing
While Chapter 13 offers significant benefits, consider these factors:
Commitment: You must make consistent payments for 3–5 years, requiring financial discipline.
Credit Impact: The bankruptcy stays on your credit report for 7 years, but you can start rebuilding credit sooner with guidance from resources like the Consumer Financial Protection Bureau.
Legal Fees: Attorney fees for Chapter 13 are typically $3,000–$5,000, often included in the repayment plan.
A consultation with a Polk County attorney can clarify
whether Chapter 13 aligns with your goals.
Table: Chapter 13 vs. Chapter 7 Bankruptcy
Feature | Chapter 13 | Chapter 7 |
Type | Reorganization (repayment plan) | Liquidation (debt discharge) |
Duration | 3–5 years | 4–6 months |
Asset Retention | Keep all assets, including non-exempt property | Non-exempt assets may be sold |
Foreclosure Protection | Stops foreclosure, allows catch-up on mortgage payments | May delay foreclosure but doesn’t restructure debts |
Credit Impact | 7 years on credit report | 10 years on credit report |
Eligibility | Regular income, debts below limits ($419,275 unsecured, $1,257,850 secured) | Must pass means test, lower income preferred |
Filing Fee | $313 | $338 |
This table summarizes key differences to help you understand your options
with more details available at U.S. Courts.
Conclusion
Chapter 13 bankruptcy offers Polk County residents a structured way to manage debt while protecting their homes, cars, and other assets. By creating a 3–5-year repayment plan, you can stop foreclosure, catch up on missed payments, and discharge remaining eligible debts.
If you’re in Lakeland, Winter Haven, Bartow, or Davenport, a local attorney can guide you through filing at the Tampa federal courthouse, leveraging Florida’s exemptions to secure your financial future. Don’t let debt overwhelm you—contact McMann, P.A. for a free consultation to explore Chapter 13 today.
Mark D. McMann
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