Debt sometimes may feel like a huge mountain to climb over, one that seems to be unassailable. For consumers in Florida who are faced with extensive debt, Chapter 13 bankruptcy may provide them a much-needed solution. This type of bankruptcy allows a person to possess his or her property while paying back debt obligations during the course of three years to five years.

This type of bankruptcy is called reorganization bankruptcy, and in order to take advantage of it, a person has to be able to abide by a certain payment plan. As a result, if the individual has too much debt, the person might be ineligible for Chapter 13 bankruptcy. The court also won’t let a person proceed with this bankruptcy option if his or her income is insufficient.

A couple of important tasks to complete when doing the bankruptcy filing is for people to calculate their property’s total value. This can help with determining the amount of one’s property that will be exempt, which affects the final payment arrangement. People must also submit all of their financial information using the correct forms.

After the forms are filed, the person filing for Chapter 13 bankruptcy has to meet with a trustee to review them. A bankruptcy judge then has to make a ruling on whether or not to confirm the repayment plan. Once the repayment plan is completed, all unsecured debt will be discharged. Filing for bankruptcy is often a helpful way to finally overcome debt that has grown too large to bear in Florida.

Source: findlaw.com, “Chapter 13 Bankruptcy Law Checklist,” July 25, 2014