Jacksonville Chapter 13 Lawyers

Chapter 13 bankruptcy, also called the wage earner’s plan, is designed for individuals with regular income who want to repay all or part of their debts through a structured plan. Rather than liquidating assets, you pay creditors in installments over three to five years. The automatic stay takes effect the moment you file, halting collection calls, foreclosure proceedings, and wage garnishments immediately.

How the Chapter 13 Repayment Plan Works

The repayment plan requires you to devote all disposable income to paying creditors over the life of the plan. Your monthly payment reflects the amount of debt you owe, and a bankruptcy trustee distributes that payment among your creditors on your behalf.

After filing for Chapter 13 bankruptcy, you may be able to:

• Save your home from foreclosure
• Prevent your car from being repossessed
• Discharge debts you no longer need to pay in full

Our Chapter 13 lawyers in Jacksonville can consult with you about your situation and help you identify the right path forward.

Want to learn more about a repayment plan? Call the Chapter 13 bankruptcy attorneys at Lansing Roy, P.A. at (904) 574-5499 or contact us online.

Who Qualifies for Chapter 13 in Jacksonville?

Chapter 13 is available to individuals with regular income, including salaried employees, self-employed individuals, and independent contractors. Corporations and partnerships don’t qualify. If you earn too much to pass the means test for Chapter 7, Chapter 13 is often the appropriate path. It’s also well-suited for people who own substantial equity in real estate and want to protect it through a structured repayment plan rather than risk losing it in liquidation.

Before filing, you must complete a credit counseling course from a U.S. Trustee-approved agency. We’ve been representing debtors in federal bankruptcy cases since 1996, filing in the Middle District of Florida, Jacksonville Division, and in Georgia. That focus means we know the local rules, trustees, and procedures that can affect your case from day one.

How Chapter 13 Stops Home Foreclosure

Chapter 13 is one of the most effective tools available if keeping your home is the priority. Filing stops foreclosure immediately through the automatic stay and gives you up to five years to cure past-due mortgage payments while staying current going forward.

The bankruptcy court has also established a mortgage modification mediation program that can help you obtain a loan modification during the Chapter 13 process. A trustee appointed by the bankruptcy court collects your plan payments and distributes them to creditors, including your mortgage company, according to your confirmed plan.

In Chapter 7, the bankruptcy court generally can’t require your mortgage company to accept payments outside the original note and mortgage terms. If you’re behind and want to keep your home, Chapter 13 gives you structured options that Chapter 7 doesn’t.

Can Chapter 13 Prevent Repossession of Your Car?

If you’re behind on vehicle payments, Chapter 13 can often prevent repossession. You continue making payments, either regular or restructured, through your Chapter 13 plan, and the automatic stay stops any repossession action the moment you file.

The 910-day rule governs how much principal you must repay the lender. If you’ve owned the vehicle for more than 910 days, the principal balance may be reduced to the vehicle’s current market value. If you’ve owned it for less than 910 days, you may still be able to reduce the interest rate and restructure the payment schedule, which can bring the monthly obligation below what the original contract required.

This same treatment applies to:

• Motorcycles
• Boats
• Furniture
• Manufactured homes

Does Chapter 13 Discharge Old Income Tax Debt?

Certain income taxes, if they’re old enough, are eligible for discharge in bankruptcy. When that happens, the tax, the penalty, and the interest are all eliminated, and the IRS is permanently barred from collecting. Very specific time tests determine eligibility, and not every tax debt qualifies.

Our Chapter 13 bankruptcy attorneys in Jacksonville can review your situation and identify which tax debts may be eligible for discharge. For taxes that don’t meet the discharge threshold, Chapter 13 still allows you to pay them out over the life of the plan, stopping IRS collection activity in the meantime.

Additional Advantages of Chapter 13 Over Chapter 7

One significant advantage of Chapter 13 over Chapter 7 is the ability to keep non-exempt assets. In a Chapter 7 case, the trustee typically gives you only three to ten months to buy back any non-exempt property.

In Chapter 13, you’re normally permitted to retain those assets. You simply pay enough into your three- to five-year plan to ensure unsecured creditors receive at least as much as they would have received under Chapter 7. In practice, this requirement can result in a significantly lower monthly payment than most people expect.

To learn more about Chapter 13 bankruptcy, please visit our frequently asked questions page.

Related Reading from our Blogs:

• Elements to a Successful Chapter 13 Repayment Plan
• When to Consider Bankruptcy

Why Jacksonville Residents Choose Lansing Roy, P.A. for Chapter 13

We’ve focused exclusively on representing debtors in federal bankruptcy cases since 1996, nearly three decades of filing and appearing in the Middle District of Florida, Jacksonville Division, and in Georgia. We know the trustees, the judges, and the local procedures that shape how these cases can unfold. We’re locally owned and rooted in Jacksonville.

We offer a free consultation to evaluate your financial circumstances and walk through your options. When your case moves forward, one of our attorneys accompanies you at the Meeting of Creditors (341 Meeting) so you don’t face that process alone. For a Chapter 13 bankruptcy lawyer in Jacksonville with a practice built around debtor representation, contact Lansing Roy, P.A. to schedule your free consultation.

Contact Our Chapter 13 Attorneys in Jacksonville Today

Lansing Roy, P.A. represents clients filing for Chapter 13 bankruptcy throughout northeast Florida and southeast Georgia, including in the Middle District of Florida, Jacksonville Division.

Call our Jacksonville Chapter 13 bankruptcy lawyers at (904) 574-5499 or contact us online to schedule a free initial consultation.