Falling behind on your mortgage, taxes, credit cards, business obligations, or other debts can quickly become overwhelming. When creditors are calling, lawsuits are pending, or foreclosure is approaching, Chapter 13 bankruptcy may provide a structured way to regain control.

Chapter 13 bankruptcy allows qualifying individuals with regular income to reorganize their debts through a court-supervised repayment plan, generally lasting three to five years. Unlike a Chapter 7 liquidation, Chapter 13 may allow you to keep important property while addressing past-due obligations over time.

At Lomba P.A., our Florida bankruptcy attorneys help individuals, professionals, business owners, and families evaluate whether Chapter 13 is the right strategy for their financial situation.

If debt is putting your home, income, or financial future at risk, the sooner you understand your options, the better.

Schedule a confidential consultation with a Chapter 13 bankruptcy attorney today.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a form of debt reorganization available to eligible individuals with regular income.

Instead of immediately liquidating assets to satisfy creditors, you propose a repayment plan that addresses debts over a period of time. Depending on your income and circumstances, a Chapter 13 plan generally lasts between three and five years.

The plan may address debts such as:

• Past-due mortgage payments

• Credit card balances

• Medical debt

• Certain tax obligations

• Personal loans

• Vehicle loans

• Judgments

• Business-related debts for which you are personally liable

• Other secured and unsecured obligations

When properly structured, Chapter 13 can provide breathing room while allowing you to work toward a more manageable financial future.

Is Chapter 13 Bankruptcy Right for You?

Chapter 13 may be worth considering if you have income but cannot keep up with your current debt obligations.

It may be particularly useful if you:

• Are behind on your mortgage

• Are facing foreclosure

• Have substantial credit card or unsecured debt

• Owe back taxes

• Are behind on vehicle payments

• Have valuable property you want to protect

• Do not qualify for Chapter 7

• Have debts connected to a closely held business

• Are personally liable for business obligations

• Need time to catch up on secured debts

• Are facing lawsuits, garnishments, or aggressive collection activity

Chapter 13 is not the right answer for everyone. The first step is understanding how bankruptcy would affect your specific debts, property, income, and long-term goals.

Chapter 13 Can Help Stop Creditor Collection Activity

One of the most important protections available through bankruptcy is the automatic stay.

When a Chapter 13 petition is filed, the automatic stay generally prevents creditors from continuing most collection actions while the stay remains in effect. This can include certain lawsuits, wage garnishments, collection calls, and foreclosure activity. There are exceptions, and the stay may be limited in certain circumstances, so the facts of each case matter.

For someone facing immediate financial pressure, that protection can create critical time to reorganize.

Can Chapter 13 Stop Foreclosure?

Chapter 13 can be especially powerful for homeowners who have fallen behind on mortgage payments.

Filing a Chapter 13 case generally triggers the automatic stay, which can stop a pending foreclosure if the bankruptcy is filed before the foreclosure sale is completed. A Chapter 13 plan may then allow a homeowner to cure past-due mortgage payments over time while continuing to make new mortgage payments as they become due.

Timing is critical.

If your home is already in foreclosure, do not wait until the last minute to evaluate your options.

Keep Your Property While Reorganizing Your Debt

One of the primary reasons people consider Chapter 13 instead of Chapter 7 is the opportunity to retain property while repaying creditors under a court-approved plan.

Depending on your circumstances, Chapter 13 may help you protect:

• Your home

• Vehicles

• Business interests

• Investment property

• Valuable personal property

• Other assets that could create complications in a Chapter 7 case

Asset protection in bankruptcy is highly fact-specific. Florida exemption law, federal bankruptcy law, liens, equity, and the type of property involved all need to be considered before filing.

Our attorneys analyze these issues before recommending a strategy.

How Does a Chapter 13 Repayment Plan Work?

A Chapter 13 case centers around a proposed repayment plan.

The plan sets out how qualifying debts will be treated and typically requires regular payments to a Chapter 13 trustee. The trustee then distributes funds to creditors according to the confirmed plan. A plan may provide for full payment of some debts and less than full payment of certain unsecured claims, depending on the circumstances and applicable bankruptcy requirements.

Factors affecting your plan may include:

• Household income

• Reasonable living expenses

• Disposable income

• Secured debt

• Mortgage arrears

• Tax obligations

• Vehicle loans

• Non-exempt assets

• Priority debts

• Unsecured debt

• Business income and operating expenses

There is no one-size-fits-all Chapter 13 payment.

A properly structured plan should account for both the requirements of bankruptcy law and your ability to realistically complete the plan.

Chapter 13 for Business Owners and Self-Employed Individuals

Chapter 13 is not limited to traditional wage earners.

Eligible self-employed individuals and individuals operating unincorporated businesses may also seek Chapter 13 relief.

That can make Chapter 13 an important option for entrepreneurs and business owners who are personally liable for debts such as:

• Business credit cards

• Personal guarantees

• Equipment financing

• Commercial leases

• Certain business taxes

• Business loans

• Merchant Cash Advance obligations

• Judgments arising from business activity

For business owners, bankruptcy planning requires more than looking at personal debt.

We evaluate how a Chapter 13 filing could affect your ownership interests, business cash flow, contracts, secured creditors, personal guarantees, and ongoing operations.

Chapter 13 and Merchant Cash Advance Debt

Business owners frequently come to Lomba, P.A. after personally guaranteeing one or more Merchant Cash Advance agreements.

When MCA payments become unmanageable, the business owner may also be facing:

• MCA lawsuits

• Personal guarantee claims

• Judgments

• Aggressive collection efforts

• UCC-related enforcement

• Multiple funders demanding payment

Depending on how the business is structured, who owes the debt, and the nature of the obligation, Chapter 13 may form part of a broader strategy for addressing personally owed business debt.

Our experience with both Merchant Cash Advance defense and bankruptcy law allows us to evaluate the entire financial and litigation picture rather than looking at each problem in isolation.

Chapter 13 vs. Chapter 7 Bankruptcy

Chapter 7 and Chapter 13 serve different purposes.

Chapter 7 generally focuses on liquidation and discharge of qualifying debt, while Chapter 13 focuses on reorganizing an individual's debts through a repayment plan.

Chapter 13 may be more appropriate when you:

• Have regular income

• Need to catch up on mortgage arrears

• Want to retain certain assets

• Have secured debts requiring restructuring

• Have financial circumstances that make Chapter 7 less suitable

The better option depends on your income, assets, liabilities, exemptions, goals, and eligibility.

A bankruptcy attorney can evaluate both alternatives before you commit to a filing.

What Debts Can Chapter 13 Address?

Chapter 13 can address many different types of debt, but not every obligation is treated the same way.

Depending on your circumstances, a Chapter 13 plan may address:

Mortgage Arrears

Past-due mortgage payments may potentially be cured through the repayment plan while you maintain ongoing payments.

Credit Card Debt

Credit cards and many other unsecured debts may be paid through the plan according to applicable bankruptcy requirements.

Medical Bills

Medical debts are typically unsecured obligations and may be addressed through the Chapter 13 plan.

Tax Debt

Certain tax debts can be addressed through Chapter 13, although the treatment and dischargeability of tax obligations depend on the type and age of the debt.

Car Loans

Vehicle debt may be treated through the plan depending on the loan, purchase date, collateral value, and other factors.

Judgments and Lawsuits

The automatic stay can generally halt many collection proceedings while the bankruptcy is pending, subject to statutory exceptions.

Personally Guaranteed Business Debt

Certain business obligations for which the individual debtor is personally liable may be included in the bankruptcy case.

What Happens to Unsecured Debt in Chapter 13?

Unsecured creditors do not necessarily receive payment of every dollar owed.

The amount paid to unsecured creditors depends on several factors, including income, disposable income, non-exempt assets, and the requirements for confirmation of the Chapter 13 plan.

If you successfully complete the plan and meet the applicable requirements, qualifying debts covered by the plan may be discharged. Certain categories of debt, however, are not dischargeable.

This is why analyzing the nature of each debt before filing is essential.

What Happens When You File Chapter 13 Bankruptcy?

Although every case is different, the Chapter 13 process generally includes:

1. Financial Analysis

We review your income, expenses, property, debts, pending lawsuits, secured obligations, and financial goals.

2. Pre-Bankruptcy Planning

Before filing, we identify potential risks, exemption issues, creditor concerns, and other matters that may affect the case.

Individual debtors generally must also complete an approved credit counseling course before filing, subject to limited exceptions.

3. Filing the Bankruptcy Petition

The Chapter 13 case begins by filing the required petition and supporting documents with the appropriate bankruptcy court.

4. Automatic Stay

Once the case is filed, the automatic stay generally takes effect and stops most qualifying creditor collection activity.

5. Chapter 13 Repayment Plan

A proposed repayment plan is submitted to the bankruptcy court.

6. Meeting of Creditors

The debtor attends a meeting conducted by the Chapter 13 trustee and answers questions under oath regarding financial affairs and the proposed plan.

7. Plan Confirmation

The bankruptcy court determines whether the repayment plan satisfies the requirements for confirmation.

8. Plan Completion and Discharge

After successfully completing required payments and satisfying other applicable requirements, the debtor may receive a discharge of qualifying debts.

Why Work With a Florida Chapter 13 Bankruptcy Attorney?

Bankruptcy is not simply a matter of filling out forms.

How your case is structured can affect:

• Your home

• Your vehicles

• Your business

• Your repayment amount

• Your tax obligations

• Your secured debts

• Your ability to obtain a discharge

• Your long-term financial position

The U.S. Bankruptcy Court for the Southern District of Florida itself notes that bankruptcy cases can involve complicated issues and that individuals may wish to hire an attorney admitted to practice before the court.

At Lomba, P.A., our approach is built around strategy.

We evaluate not only whether you can file Chapter 13, but whether filing Chapter 13 supports your broader financial goals.

Why Choose Lomba, P.A.?

Lomba, P.A. represents clients facing sophisticated financial and commercial problems.

Our broader experience in bankruptcy, business litigation, Merchant Cash Advance defense, corporate law, and commercial transactions allows us to understand financial distress from multiple perspectives.

Clients turn to our firm for:

• Strategic bankruptcy planning

• Chapter 13 representation

• Creditor and collection defense

• Foreclosure-related bankruptcy strategy

• Business-owner bankruptcy matters

• Personal guarantee exposure

• Merchant Cash Advance-related debt

• Complex financial disputes

Our objective is to help you understand the available options and develop a legal strategy designed around your circumstances.

Take Control of Your Financial Future

Financial problems become more difficult when they are ignored.

If you are facing foreclosure, lawsuits, tax debt, overwhelming monthly payments, business-related obligations, or other serious financial pressure, Chapter 13 may provide a path toward reorganizing your debts while protecting important assets.

The right strategy starts with understanding your options.

Schedule a confidential consultation with Lomba, P.A. to speak with a Florida Chapter 13 bankruptcy attorney.