When a Florida homeowner files Chapter 13 bankruptcy to stop a Florida foreclosure, the foreclosure does not automatically disappear -- it is temporarily halted by the automatic stay. To permanently cure the arrears and keep the home, the homeowner must have a Chapter 13 plan confirmed by the bankruptcy court.
Plan confirmation is the court's approval of the homeowner's repayment plan -- and it is where many Chapter 13 cases succeed or fail. Understanding how the confirmation process works, what the trustee reviews, and what can cause a plan to be denied is critical for every Florida homeowner considering Chapter 13.
The Cure-and-Maintain Provision (11 U.S.C. 1322(b)(5))
The core benefit of Chapter 13 for homeowners is the “cure and maintain” provision at 11 U.S.C. 1322(b)(5). It works as follows:
- Cure: The plan pays the entire amount of mortgage arrears (missed payments, late fees, escrow advances, accrued interest) in installments over the 3-to-5-year plan term. The arrears are divided into equal monthly payments and paid through the Chapter 13 trustee to the lender.
- Maintain: The homeowner simultaneously continues to make their regular ongoing monthly mortgage payment directly to the servicer -- the payment due each month going forward. This payment does not go through the trustee.
At the end of a successfully completed plan, the mortgage is fully current -- as if the arrears had never existed. The foreclosure is permanently stopped, and the homeowner retains the property. The lender cannot foreclose based on the pre-petition arrears once the plan is completed.
The Confirmation Process: What Gets Reviewed
After the Chapter 13 petition and plan are filed, the bankruptcy court schedules a confirmation hearing (typically 30-60 days after filing in Florida's Middle and Southern Districts). Before the hearing, the Chapter 13 trustee reviews the plan and the debtor's financial disclosures. The confirmation standards are set by 11 U.S.C. 1325:
- Good faith (11 U.S.C. 1325(a)(3)): The plan must be proposed in good faith. Plans that attempt to abuse the process (such as repeatedly filing and dismissing to delay foreclosure without genuine intent to complete a plan) are denied.
- Best interests of creditors (11 U.S.C. 1325(a)(4)): Unsecured creditors must receive at least what they would get in a Chapter 7 liquidation. For most Florida homeowners with a primary residence protected by the homestead exemption, this amount is zero.
- Disposable income / feasibility:If the trustee or an unsecured creditor objects, the plan must commit all “projected disposable income” to plan payments for 3-5 years. The plan must also be feasible -- meaning the debtor has sufficient regular income to make all required payments.
- Full cure of mortgage arrears: Under 11 U.S.C. 1322(b)(5), the mortgage arrears must be cured in full over the plan term. They cannot be reduced, crammed down, or discharged -- they must be paid in full.
The Mortgage Servicer's Proof of Claim
Once the case is filed, the mortgage servicer must file a Proof of Claim with the court setting out the total arrears amount. Review this claim carefully -- servicers sometimes include errors such as:
- Double-counted late fees or escrow advances
- Pre-petition attorney fees and foreclosure costs that were not properly incurred
- Force-placed insurance premiums that may be disputed
- Incorrect interest calculations
If you find errors in the Proof of Claim, your attorney can file a formal objection with the court. Getting the arrears amount correct is important because an overstated claim means higher monthly payments and a higher risk of plan infeasibility. See the related guide on force-placed insurance in Florida foreclosure for details on disputing lender-placed insurance charges.
Income Requirements and the Means Test
Chapter 13 is available only to individuals with “regular income” -- a broad standard that includes wages, self-employment income, rental income, Social Security, pension, and even consistent support from family members. Unlike Chapter 7, there is no income ceiling for Chapter 13 eligibility. However, you must have enough income to fund both the plan payments (arrears cure divided over the plan term) and your ongoing monthly mortgage payments.
Debt limits also apply: as of 2024, Chapter 13 is limited to individuals with non-contingent, liquidated unsecured debts below $2,750,000 (the consolidated limit under the Bankruptcy Threshold Adjustment and Technical Corrections Act of 2022). Debtors with debts above this limit must use Chapter 11 to reorganize.
After Confirmation: Staying Current
Confirmation is the beginning, not the end. A confirmed plan requires strict compliance for its entire 3-to-5-year term:
- Monthly plan payments to the trustee (covering the mortgage arrears plus any other secured or priority debts)
- Ongoing monthly mortgage payments directly to the servicer
- Property tax and insurance payments (if not escrowed)
If you fall behind on plan payments, the trustee will file a Motion to Dismiss. If you fall behind on the ongoing mortgage payments, the servicer can file a Motion for Relief from the Automatic Stay and, if granted, resume the foreclosure. Contact your bankruptcy attorney immediately if you experience a change in circumstances -- a plan modification (11 U.S.C. 1329) may be available to address a temporary hardship.
What Happens If Chapter 13 Is Dismissed
If a Chapter 13 case is dismissed before completion, the automatic stay lifts immediately and the Florida foreclosure resumes. If a sale date was pending at the time of filing, the lender can reschedule it. Importantly, if you file a second bankruptcy within one year of the dismissal, the automatic stay only lasts 30 days (not indefinitely) under 11 U.S.C. 362(c)(3), and a court order is required to extend it. A third filing within a year results in no automatic stay at all.
This “serial filer” rule exists to prevent homeowners from filing and dismissing Chapter 13 cases repeatedly simply to delay foreclosure without genuine intent to complete a plan.
Alternatives to Chapter 13 for Curing Mortgage Arrears
Chapter 13 is powerful but not always the right choice. Florida homeowners should also consider:
- Loan modification: Loan modification can restructure the mortgage to add arrears to the principal or extend the term -- often without the complexity and cost of bankruptcy.
- Reinstatement: Reinstatement pays all arrears in a lump sum and immediately restores the original loan terms.
- Forbearance: Forbearance temporarily suspends or reduces payments, followed by a repayment plan or modification.
- Pre-foreclosure sale: Selling before foreclosure may generate enough proceeds to pay off the mortgage and avoid all bankruptcy costs.
Related Resources
- Chapter 13 Bankruptcy to Stop Foreclosure in Florida -- step-by-step overview of the Chapter 13 process
- Chapter 7 vs Chapter 13 for Florida Homeowners -- comparison of how each bankruptcy chapter affects your home
- Lien Stripping a Second Mortgage in Chapter 13 -- removing a wholly unsecured second mortgage lien
- Loan Modification in Florida -- a non-bankruptcy alternative to cure arrears and keep the home
- Mortgage Reinstatement in Florida -- paying all arrears in a lump sum to restore the original loan
- Deficiency Judgments in Florida -- what happens if the home is sold and the proceeds are insufficient
- Bankruptcy and Foreclosure in Florida -- overview of all bankruptcy options for Florida homeowners
- Florida Foreclosure Survival Checklist -- track all deadlines and action items
- 8 Ways to Stop Foreclosure in Florida -- overview of all options available to Florida homeowners
- Contact Barrett Henry for a Free Consultation -- Broker Associate at REMAX Collective, 23+ years of Florida real estate experience
About the Author
Barrett Henry is a Broker Associate at REMAX Collective and a Florida real estate professional with 23+ years of experience helping homeowners in distress. He works directly with sellers throughout Tampa Bay and provides referral assistance to homeowners in all 67 Florida counties. This guide reflects general information about Chapter 13 bankruptcy and Florida foreclosure law and is not legal advice. Consult a licensed Florida bankruptcy attorney for advice on your specific situation.
Considering Chapter 13 to save your Florida home from foreclosure? Contact us today for a free consultation -- no cost, no obligation.
