Florida Bankruptcy under Chapter 13 Wage Earner Plans
Filing Florida bankruptcy under Chapter 13 provides individuals with an opportunity to reorganize debts. Longer
payouts, discounted payouts, and discharges of debts with court protection are
available. Many code provisions apply to all chapters, while 11 U.S.C. Sec. 1301
applies only to Chapter 13.
Chapter 13 is designed to allow financially distressed individuals who file Florida bankruptcy to invoke a
cloak of protection provided by the courts. Under court supervisions, assets are
protected, and a proposed plan must be filed that provides for payment of all or
part of debts owed. Following confirmation, a trustee collects monthly payments, deducts a fee for services
provided, disburses payments to creditors, and provides a periodic accounting to the court.. All laws
applicable to Florida bankruptcy are currently under review by the U.S. Congress, especially payment amounts required in Chapter 13.
Reform bills specifically target Florida bankruptcy by placing a mandatory limit on all state homestead
exemptions, and limit allowable living expenses to a standard adopted from the IRS which applies to criminals
charged with tax evasion.
Florida Bankruptcy Plans
Chapter 13 is designed for
individuals with regular income. The term "wage earner" is derived from this requirement and is still in use
today for Florida bankruptcy under Ch. 13. These plans are ideally suited for employees who desire
court protection from creditors and are also permissible for sole proprietors who satisfy the "regular income"
requirements of the Code. Plans may provide either full or partial payment of
debts, with discharge of remaining balances, if any, upon completing all payments. Plan terms are available for
Florida bankruptcy cases ranging from 3 to 5 years. A plan lasting more than three years must be approved by the court "for cause."
All Chapter 13 plans are limited to a maximum of 5 years. 11 U.S.C. 1322(d).
Individuals, including self-employed
owners of sole proprietorships, are authorized to file Chapter 13 if owing less
than $269,250 in unsecured debts, and less than $807,750 in secured debts. 11
U.S.C. 109(e).
Note: the particular chapter which may best serve debtors depends on many factors. Past due payments are
treated differently. Property may be subject to forfeiture. The period of court supervision of the estate lasts
from a few months, up to five years. The personal goals of each individual and their lawyer must receive primary consideration to
maximize results.
Florida Bankruptcy topics.
|
