Chapter 13 Bankruptcy

Posted on: March 28, 2017 at 2:31 pm

Which type of bankruptcy is right for you? Let FL Legal Group help you decide.

Chapter 13: This type of bankruptcy is helpful if you have income, a house, and other assets and are behind in payments.

Chapter 7: This is the most common type of bankruptcy, useful if you have credit card, medical bills, other unsecured debt and not much personal property.

Advantages of Chapter 13 Bankruptcy

Chapter 13 Bankruptcy offers individuals a number of advantages over liquidation under Chapter 7 Bankruptcy:

  • An opportunity to save their homes from foreclosure. By filing under this chapter, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. Nevertheless, they must still make all mortgage payments that come due during the chapter 13 plan on time.
  • Mortgage Modification through Mediation: Due to the overwhelming need to modify mortgages and potentially assist homeowners keep their home at a reasonable rate, the Middle District Bankruptcy Court has initiated a mortgage modification program to assist Debtors obtain loan modification.  75% of mortgages modified through bankruptcy court are successful, as opposed to 3% in state court where the foreclosure case is initiated.
  • Another advantage of chapter 13 is that it allows individuals to rework secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan (3 to 5 years). Doing this may lower your payments over the life of the plan.
  • Chapter 13 also has a special provision that protects third parties who are liable with the debtor on “consumer debts.” This provision may protect co-signers.
  • Finally, chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a chapter 13 trustee who then distributes payments to creditors. Individuals will have no direct contact with creditors while under chapter 13 protection.

For a Consultation of Your Bankruptcy Options

Call FL Legal Group today for a consultation to learn your rights and options available to you. If you are facing bankruptcy, foreclosure or violations of consumer rights FL Legal Group can help you navigate through the complex legal process and provide resolution. Call today and let us help protect your legal rights.

FL Legal Group is a full service law firm, practicing in the areas of Real Estate Law, Foreclosure, Bankruptcy, Loan Modifications, Short Sales, Condo and HOA laws, and Construction Law. Our main office is located in Tampa at 501 E. Kennedy Blvd. Suite 810, Tampa, FL, 33602. Call 800-984-9951 to schedule a consultation.

We are open 8:30 am to 5:30 pm Monday through Friday, excluding Holidays. You may also reach a member of our staff via email at, or continue to browse

Author: Nicki Asmer
Bankruptcy ||