Chapter 13 – Detailed Discussions

Insolvency is a legal process which gives people an opportunity to get rid of past debts. However, the law regarding insolvency is complicated. Without the assistance of a competent attorney you will not be able to understand the complexity of the law. To file for the insolvency, you need to establish that you are eligible to file for this process.

Different kinds of insolvency

As the resident of Florida, you have the right to opt for two types of insolvencies, chapter 13 and 7. In case you are willing to file for one, it is important that you get in touch with competent attorneys.

Chapter 13

This is the process which allows you to keep the property. However, that does not mean you will get away with the debt. You need to pay back the debt within a given time limit. This time limit can be between three and five years. You need to have high earning to file for this insolvency.


This process is not for everyone. The competent West Palm Beach chapter 13 bankruptcy lawyers can provide you better insight about this. There is a threshold of earning which you need to match to get the court approve of this.


There are some important factors which you need to fulfill before filing for insolvency. You are needed to go through the process of credit counseling. The US court will decide which agency gets to counsel you. You may have to pay a fee for this process. However, normally the agencies do not charge anything for the counseling. If you fail to afford the expense, the cost will be reduced.

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The plan for payment

You are required to work closely with a team of expert and plan to pay off the debt. This team will be assigned by the US court. It is important that you have the willingness to get rid of the debt and start fresh. For this you need to work hard and stick to the plans.

There are types of debts. Some you will have to pay in full. This debt is known as priority debt. This is important debts which includes child support and overdue salary of the employees.

The time

The time which may take for the plans to get executed depends on the income. In case of higher income, you may get a three year time period to pay off the debt. If your earning is not high, you will receive a time period of five years, but not more than that.

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