Chapter 13 Bankruptcy in Miami

Arturo R. Alfonso P.A. represents Miami-Dade individuals and couples, in English and Spanish, in Chapter 13 bankruptcy cases filed in the U.S. Bankruptcy Court for the Southern District of Florida. This page explains how the firm handles a Chapter 13 case from the first review to the discharge: what we look at before filing, how the plan is built and confirmed, what the years of plan payments involve, and what has to happen before the case closes.

The difference between the two consumer chapters, including the Chapter 13 debt limits, is covered in our guide Chapter 7 vs. Chapter 13, and the way a plan can stop a foreclosure sale is explained in Can bankruptcy stop foreclosure in Florida?

Stage 1: The Review Before Anything Is Filed

A Chapter 13 plan is a budget the court has to approve, so the review is mostly about numbers. We start with income: your current monthly income, measured against the Florida median for your household size, decides whether the plan may run three years or must be proposed for up to five. Under 11 U.S.C. section 1322(d), a filer below the median proposes a plan of no more than three years unless the court approves a longer period for cause, and no plan may run longer than five years.

Next, what you want to protect. Florida residents cannot use the federal exemptions (Section 222.20, Florida Statutes), so we match your home, car, and accounts to the Florida exemptions described in our guide to Florida’s bankruptcy exemptions. Unsecured creditors must receive at least what they would get if non-exempt property were liquidated in Chapter 7 (11 U.S.C. section 1325(a)(4)), so that property shapes the plan.

Finally, history and paperwork. A Chapter 13 discharge is not available if you received a discharge in a Chapter 7 case filed within the four years before the new case, or in a Chapter 13 case filed within the prior two years (11 U.S.C. section 1328(f)). Any federal tax returns you were required to file for the four years before the petition must be filed before the meeting of creditors (11 U.S.C. section 1308), so we find out early whether any are missing. If the review points to Chapter 7 or to no bankruptcy at all, we tell you before you pay a filing fee.

Stage 2: Filing the Petition and the Plan

Before filing, you complete a credit counseling briefing with an approved agency within the 180 days before the petition (11 U.S.C. section 109(h)). We then prepare the petition, the schedules, the statement of financial affairs, the income calculation, and the plan. Federal Rule of Bankruptcy Procedure 3015(b) requires the plan to be filed with the petition or within 14 days after it, and Local Rule 3015.1-1 of the Southern District of Florida requires every Chapter 13 plan to be written on the court’s local form. You review and sign each document with us before it is filed.

Payments start quickly. Unless the court orders otherwise, you must begin plan payments no later than 30 days after the plan is filed or the case begins, whichever is earlier (11 U.S.C. section 1326(a)(1)), even though the plan has not been confirmed yet. When the petition is filed, the automatic stay generally stops collection, lawsuits, garnishments, and foreclosure sales.

Stage 3: The Meeting of Creditors and Confirmation

Under Rule 2003(a), the meeting of creditors in a Chapter 13 case is set no fewer than 21 and no more than 50 days after the case is filed. Your most recent federal tax return must reach the trustee no later than 7 days before the date first set for the meeting (11 U.S.C. section 521(e)(2)(A)). In the Southern District these meetings are held by Zoom, and Attorney Alfonso attends with you; our guide to the 341 meeting covers the usual questions.

The confirmation hearing follows. Under 11 U.S.C. section 1324(b), it may be held no earlier than 20 and no later than 45 days after the meeting of creditors, unless the court sets it earlier and no one objects. The trustee or a creditor may object to the plan before then. When an objection can be resolved by changing the plan, we file the amended plan; Local Rule 3015-1 requires an amended plan to be filed and served at least 14 days before the hearing for it to be considered there.

Stage 4: The Plan Years

Once the plan is confirmed, the work becomes steady: you make each plan payment, keep up the regular payments the plan leaves outside it, and keep any domestic support obligation current. Life changes during three to five years. If your income drops or rises, a confirmed plan can be modified before the payments are completed, at the request of the debtor, the trustee, or an unsecured creditor with an allowed claim (11 U.S.C. section 1329(a)). Tell us about a job change, a new expense, or a missed payment as soon as it happens, so we can address it with the trustee before it becomes a motion to dismiss. You also keep the right to convert the case to Chapter 7 or ask to dismiss it (11 U.S.C. section 1307(a) and (b)), and we review those options with you if the plan stops working.

Stage 5: Completing the Plan and the Discharge

The court will not grant a Chapter 13 discharge unless you have completed a personal financial management course after filing (11 U.S.C. section 1328(g)(1)), and the statement showing you completed it is due no later than the date the last plan payment is made (Rule 1007(c)(4)(B)). If you owe domestic support under a court order or statute, you must also certify that the amounts due have been paid (11 U.S.C. section 1328(a)). We remind you of both as the final payments approach, and the discharge is entered after you complete all payments under the plan. Our guide to what debts are wiped out describes the debts that survive.

What to Send Us Before the Consultation

• Pay stubs or other income records for the last six full calendar months, and proof of any household income.
• Your federal tax returns for the last four years, or a note of any year not filed.
• Your mortgage and car loan statements, with the amount you are behind, and any foreclosure or repossession papers.
• A list of every other debt, with recent statements and any lawsuit or garnishment papers.
• Any child support or alimony order, and any earlier bankruptcy case number.

Our checklist of documents needed to file bankruptcy has the full list, and what it costs to file covers the court fee and the two courses.

Related Pages

• Bankruptcy Law in Miami
• Chapter 7 Bankruptcy in Miami
• What is the difference between Chapter 7 and Chapter 13?
• Can bankruptcy stop foreclosure in Florida?
• Will I lose my house if I file bankruptcy in Florida?
• Can bankruptcy stop car repossession in Florida?
• How often can you file bankruptcy?