Which Chapter for You?


Debt relief is a federal remedy authorized by the United States Bankruptcy Code. It helps people when debts become unmanageable.  See the following information for a general discussion of debt relief alternatives that could suit your needs.

Which Chapter Is For You?

ScalesWe generally advise Chapter 7 Bankruptcy when debts are large in relation to income and living expenses, making it difficult to make full or partial payments under Chapter 13. This chapter is useful when you have no or very little non-exempt property.

We generally advise Chapter 13  Bankruptcy when:

You have a strong desire and ability to pay all or a portion of your debts.


You want to cure arrears on a real estate mortgage, stop foreclosure and save the property (including your homestead).


You want to payoff your car loan or other lien against personal property. Note that you must only pay the value of the collateral if less than the payoff amount.


You want to protect non-exempt assets.


You owe taxes to the IRS or Florida Department of Revenue that are nondischargeable in a Chapter 7.


You want to cure arrearages on child or spousal support payments.


You need to discharge debts that are nondischargeable in Chapter 7, such as debts for fraud, willful and malicious injury to another person or property, embezzlement, breaches of fiduciary duties and others.


You want to protect a cosigner on a consumer debt.


You filed a Chapter 7 in the past 6 years.

Chapter 20 - Combination: If Chapter 13 is the best solution but you are unable to make Chapter 13 plan payments, we may file Chapter 7 to delete dischargeable debts; then, after your Chapter 7 is discharged, we file a Chapter 13 to cure your non-dischargeable debts.



Chapter 13 Debt Adjustment

Stretch your dollarsChapter 13 - Debt Adjustment, or debt consolidation, combines bills and back payments, reduces the amount owed, stops most interest charges and extends your time to pay 3 to 5 years. The result is a new affordable payment plan.

Chapter 13 is not a loan. It is set of federal statutes that requires creditors take less each month from you, for a longer period of time. It is available to individuals with:

  1. regular income from any source; 
  2. unsecured debts not exceeding $269,250; and
  3. secured debts not exceeding $807,750.

Keep your home, auto, furniture, business, cash, all assets you choose under Chapter 13, because debts and arrears are paid "as if in full" and you receive a discharge from any unpaid amounts.

We determine your Chapter 13 plan payment by taking net monthly income less normal living expenses. The amount left over is paid to a trustee, who in turn pays creditors monthly.

If the amount left over cannot repay creditors in full over 3 to 5 years, we reduce the balance owed to unsecured creditors and sometimes secured creditors. You pay creditors 0% to 100% of the balance owing depending on: 1) your budget and 2) the types of debts you have.

We eliminate all interest on unsecured debt and certain types of secured debt. This reduction of interest, balance owing, and extended time to pay, makes the payment affordable. We ensure that you receive the lowest payment plan allowed by law. Chapter 13 immediately stops foreclosure. Delinquent house payments are included in the payment plan and brought current over 36 months along with your normal monthly payment.

You can payoff your Chapter 13 plan or have it dismissed anytime prior to completion without interest or penalty. However, if your plan pays creditors less than 100% of the amount due, you must pay creditors 100% to obtain an early discharge.



Chapter 7 Bankruptcy

UnweildingChapter 7 is for liquidation. It is most commonly used by individuals with credit card depts. Chapter 7 - Bankruptcy eliminates debts you do not want. You need not ever pay. When we file your case, dischargeable debts and claims against you are gone forever. However, some debts are not dischargeable and non-exempt assets may be sold to pay creditors. The general rule is: unsecured debts are dischargeable and secured debts are not.

The Law Offices Roberts & Roberts provide pre-petition planning to assure the highest protection available. Over 90% of our clients keep everything and lose nothing. We achieve this by careful planning and taking special exemptions allowed by law.