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Chapter 13 Bankruptcy Attorney Fort Myers FL
Fort Myers Chapter 13 Bankruptcy Attorneys
Chapter 13 bankruptcy is designed for people who have steady income but have fallen behind on mortgage payments, car loans, or other secured debts — and who have assets worth keeping. It is the primary tool for stopping foreclosure and saving a home, and it offers powerful options unavailable under Chapter 7, including lien stripping and cramdowns.
Martin Law Firm, P.L. has guided Fort Myers and Lee County residents through Chapter 13 for over 20 years. We understand the financial pressures unique to Southwest Florida — from job disruptions and hurricane-related expenses to the rapid cost-of-living increases that have strained family budgets across Lee and Collier counties. If you have fallen behind but have income to work with, Chapter 13 may be the path forward.
Facing Foreclosure? Act Now.
Filing a Chapter 13 petition stops foreclosure proceedings immediately — including on the day of a scheduled sale. The automatic stay is one of the most powerful legal protections available to homeowners. Call us before the sale date: (239) 443-1094.
Chapter 7 vs. Chapter 13: Which Is Right for You?
Both chapters eliminate debt, but they work differently and serve different situations. The right choice depends on your income, assets, and goals.
Chapter 7 — Better If:
- Your income is below Florida's median
- Most debt is unsecured (credit cards, medical bills)
- You do not have a home to save from foreclosure
- You need relief quickly (3–6 months)
- You have few non-exempt assets
Chapter 13 — Better If:
- You have regular income
- You are behind on a mortgage and want to save your home
- You do not pass the Chapter 7 means test
- You have non-exempt assets you need to protect
- You owe back taxes or other priority debts
- You have a second mortgage to potentially strip
We confirm the right chapter for your situation during your free consultation. Many clients come in thinking they need Chapter 7 and discover Chapter 13 is actually the better tool — or vice versa.
How the Chapter 13 Repayment Plan Works
In Chapter 13, you propose a repayment plan — reviewed and approved by the bankruptcy court — that spans 3 years (if your income is below Florida's median) or 5 years (if above). During the plan:
- You make a single monthly payment to the Chapter 13 trustee
- The trustee distributes payments to creditors according to the plan's priority structure
- Secured debts (mortgage arrears, car loans) and priority debts (taxes, child support) are paid first
- Unsecured debts (credit cards, medical bills) receive whatever is left — often pennies on the dollar
- Any remaining eligible unsecured debt is discharged when the plan is complete
You keep all your property throughout the plan as long as you make payments. Creditors cannot contact you, sue you, or take collection action while the automatic stay is in effect.
What Happens if I Miss a Plan Payment?
If you fall behind on plan payments, the trustee may file a motion to dismiss your case. However, courts generally allow one opportunity to cure a default. If your circumstances change significantly — job loss, illness, family emergency — we can file a motion to modify your plan. The flexibility to adapt your plan is one of Chapter 13's key strengths.
Powerful Tools Available Only in Chapter 13
Stopping and Curing Mortgage Foreclosure
The automatic stay halts foreclosure the moment you file. Chapter 13 then lets you cure the mortgage default (all the back payments you owe) over 3 to 5 years while continuing current payments. At plan completion, your mortgage is current. This is the most common reason Fort Myers homeowners choose Chapter 13.
Lien Stripping — Eliminate a Second Mortgage
If your home is worth less than what you owe on your first mortgage, any junior liens — a second mortgage, HELOC, or judgment lien — can often be stripped entirely. The stripped lien is reclassified as unsecured debt and treated like a credit card, potentially discharged at plan completion for nothing. This tool has helped many Fort Myers homeowners who were upside-down on their homes eliminate tens of thousands in junior mortgage debt.
Cramdown — Reduce Your Car Loan to Market Value
If you owe more on your vehicle than it is worth, Chapter 13 allows you to cramdown the loan to the car's current fair market value. The excess balance is treated as unsecured debt and potentially discharged. You must have purchased the vehicle more than 910 days (about 2.5 years) before filing to use this tool.
Paying Back Taxes Over Time
Priority tax debts — income taxes, payroll taxes — must be paid in full in Chapter 13 but can be spread over the entire plan period without the accruing penalties and interest that compound outside of bankruptcy. If you owe the IRS or Florida Department of Revenue, Chapter 13 can stop collections and put you on a structured, affordable repayment schedule.
The Chapter 13 Process in Fort Myers & Lee County
| Step | Timeline | What Happens |
|---|---|---|
| Free Consultation | Before filing | We review your income, debts, assets, and goals. Confirm Chapter 13 eligibility. Develop plan strategy. |
| Filing & Automatic Stay | Day 1 | Petition filed in the Middle District of Florida. Automatic stay immediately stops foreclosure, garnishment, and all collection actions. |
| Plan Proposed | Days 1–14 | We submit your 3 or 5-year repayment plan to the court. Creditors have 21 days to object. |
| Meeting of Creditors | ~30 days | Brief meeting with the Chapter 13 trustee. We accompany you and prepare you in advance. |
| Plan Confirmation | 60–90 days | Court formally confirms (approves) your repayment plan. You begin making plan payments. |
| Plan Payments | 3–5 years | Monthly payments to trustee. We monitor compliance and address any issues that arise. |
| Discharge | After plan completion | Remaining eligible unsecured debt discharged. Case closes. You emerge debt-free with assets intact. |
Frequently Asked Questions — Chapter 13 Bankruptcy in Fort Myers, FL
Can Chapter 13 stop a foreclosure in Fort Myers?
Yes — immediately. Filing triggers the automatic stay, which halts foreclosure proceedings the moment the petition is filed. If a sale is scheduled for tomorrow, filing today stops it. Chapter 13 then lets you cure the mortgage default over 3 to 5 years while resuming regular payments. We have helped many Lee County homeowners save their homes this way.
What is the monthly payment in Chapter 13?
Your monthly plan payment is calculated based on your disposable income — what remains after subtracting allowed living expenses from your income. The amount must be enough to pay priority debts (mortgage arrears, taxes) in full and to pay unsecured creditors at least what they would receive in Chapter 7. Our attorneys calculate a proposed payment during your free consultation so you know before you commit.
What is lien stripping in Chapter 13?
Lien stripping removes a wholly unsecured junior mortgage from your property when your home's value is less than the balance on the first mortgage. The stripped lien is reclassified as unsecured debt and may be discharged at plan completion — potentially eliminating tens of thousands of dollars in mortgage debt entirely.
Can I cramdown my car loan in Chapter 13?
Yes, if you purchased the vehicle more than 910 days before filing. A cramdown reduces your car loan to the vehicle's current market value. The remaining balance is treated as unsecured debt. For example, if you owe $18,000 on a car worth $11,000, you pay $11,000 through the plan and the $7,000 deficit may be discharged.
What if my income drops during the plan?
We can file a motion to modify your plan to reflect the change in income. Courts generally grant modifications when circumstances genuinely change. If you lose your job entirely, you may also convert to Chapter 7 — though eligibility depends on your income at the time of conversion. We monitor your case throughout the plan period and advise you on the best course of action if your situation changes.
Can I keep all my property in Chapter 13?
Yes. Unlike Chapter 7, which involves a trustee liquidating non-exempt assets, Chapter 13 allows you to keep all your property. The trade-off is that unsecured creditors must receive at least as much as they would in a Chapter 7 liquidation — a calculation our attorneys handle when structuring your plan.
How long does Chapter 13 stay on my credit?
A Chapter 13 filing remains on your credit report for 7 years from the filing date — three years shorter than Chapter 7. Many clients begin rebuilding credit while still in the plan by making consistent, on-time payments to secured creditors.
Which court handles Chapter 13 cases in Fort Myers?
Chapter 13 petitions for Fort Myers and Lee County residents are filed in the U.S. Bankruptcy Court for the Middle District of Florida, Fort Myers Division. Martin Law Firm has practiced before this court for over 20 years.
Why Fort Myers Families Choose Martin Law Firm for Chapter 13
- Deep experience in Chapter 13 plan confirmation. Successfully confirming plans in the Middle District requires understanding the local trustee's expectations, objection patterns, and confirmation standards. We have navigated hundreds of confirmations in this court.
- Lien stripping and cramdown expertise. These powerful tools require detailed analysis and proper procedural execution. We identify every opportunity to reduce what you owe.
- Plan modification support. We remain active on your case throughout the 3 to 5 year plan — not just at filing. If something changes, we act.
- Foreclosure emergency response. If you are days from a foreclosure sale, call us. We have filed petitions with same-day turnaround when circumstances demand it.
- Transparent, flat-fee structure. We quote your legal fee in writing at the outset. No billing surprises over a 5-year plan.