Chapter 13 bankruptcy generally applies to people who have enough money to pay their living expenses yet not enough income to pay other outstanding debts. In essence, Chapter 13 is a repayment plan in which you agree to pay creditors part or all of your debts over a 3-5 year period. You are allowed to keep your assets and property as long as you make all the payments according to the Plan. Upon completion of the repayment plan, the debts addressed by the Plan are discharged and you have no further obligation to pay them. Oftentimes, much of your debt will be wiped out provided you successfully complete your Chapter 13 plan.
We find that many people choose to file a Chapter 13 even if they make under the Means Test. These are people who want to keep personal or real property above the Florida exemptions allowed by law. For example, a common reason for filing a Chapter 13 even though our client makes under the Means Test is because they