A Chapter 13 Bankruptcy is also known as a repayment plan as a portion of the debts owed is repaid to the creditors.

A Chapter 13 bankruptcy may be filed when the debtor’s income exceeds predetermined family income level and/ or if the value of the debtor’s assets exceed  a predetermined asset exemption level.  The means test  budget helps determine the amount to be paid.  If a debtor owns homestead property in Florida, he may retain his homestead property and all the equity in that property; however, he would need to continue to pay his mortgage payments and property taxes.

In a Chapter 13 case, a monthly payment is made to the Bankruptcy Trustee.  When the final payment is paid, the debtor receives a discharge of all his dis-chargeable debts. Dis-chargeable debts usually include credit cards, medical bills, signature loans, deficiency claims resulting from repossessions, household bills, and other unsecured debts.