Fort Lauderdale

Divorce and Bankruptcy Attorney


(954) 332-3558

A Chapter 13 Bankruptcy is a reorganization of debt.  The case starts with the creation of a plan of reorganization in which you pay a portion of your debt back.  The repayment plan in part is based on a repurchase of non-exempt assets from the bankruptcy estate (Liquidation Analysis); accordingly you may keep most, if not all, of your assets.


How Chapter 13 Bankruptcy Works:

A Chapter 13 Bankruptcy typically focuses on either secured assets or an income test known as the Means Test. Under the Means Test the Debtor will typically pay their creditors the difference between their income and their allowed expenses. A person with more income than expenses, or discretionary income, may be required to file under Chapter 13 of the Bankruptcy Code, and may not be allowed to file under Chapter 7. The Current income levels for the Chapter 13 means test are detailed below.

A debtor may elect to file a Chapter 13 Bankruptcy to deal with specific debt. Certain secured debt may be revalued to the current value of the asset or restructured or modified to a longer payment plan or lower interest under Chapter 13. For example, a Chapter 13 can revalue a car loan to the value of the car, may be able to strip a second mortgage , or may be used to pay back loan payments over time.

Call Fort Lauderdale Chapter 13 Lawyer Darren K. Edwards at (954) 495-4690 to discuss your Chapter 13 Bankruptcy options.