Chapter 7 vs 13 vs 11 vs Subchapter V
Four chapters. One honest comparison.
Choosing the wrong chapter costs money, time, and sometimes property. The right chapter depends on your income, your assets, your goals, and whether the debt is personal or business. Here is how we actually think it through.
Start here
The decision tree
This is how the analysis usually flows. Follow your answers down the tree, then read the full section for the chapter you land on.
Is most of your debt personal (credit cards, medical, personal loans) or from a business?
Is your household income below the Florida median for your household size, or do you pass the means test?
Are the total debts under the Subchapter V statutory cap?
An honest caveat: real cases mix factors. Prior filings, tax debt, jointly owned property, personal guarantees, and timing can all change the answer. This tree is a guide, not a verdict. The portal assessment runs the numbers, and Rafael Recalde confirms the chapter before anything is filed or paid.
Liquidation: the clean break
Wipe out unsecured debt in months, keep what Florida law protects.
Chapter 7 is the fastest form of relief in the Code. A trustee is appointed to look for non-exempt assets to sell for creditors, but in Florida that search usually comes up empty: the exemptions here are among the strongest in the country, and the homestead exemption can protect your home entirely. Most Florida Chapter 7 cases are no-asset cases, meaning you keep everything and your qualifying debts are discharged.
The gate is the means test. If your household income is below the Florida median for your household size, you generally qualify. Above the median, a detailed expense calculation decides it. And if your debts are primarily business debts, the means test does not apply at all, which makes Chapter 7 a powerful option for former business owners winding down personal guarantees.
Strongest fit when
- Income below the Florida median, or a failed business with primarily business debt
- Mostly unsecured debt: credit cards, medical bills, personal loans, deficiency balances
- You are current on any home or car you want to keep, or willing to surrender what you cannot afford
Major deadlines in a Chapter 7 case
Day 0
Petition filed, automatic stay begins
Garnishments, lawsuits, repossessions, and most collection calls stop immediately under 11 U.S.C. § 362.
Day 14
Schedules and statements due
The full picture of your debts, assets, income, and expenses is filed with the court. The portal has these built before day one.
Day 21 to 50
341 meeting of creditors
A short, recorded meeting with the trustee, usually minutes long. Creditors rarely appear. We prepare you for every question in advance.
60 days after the 341
Financial management certificate due
You complete a short approved course (we send the link), and this date is also the deadline for most objections to your discharge.
Month 4 to 6
Discharge entered
The court order wipes out your qualifying debts permanently. The fresh start is official.
The repayment plan that saves homes
Stop a foreclosure, catch up arrears over 3 to 5 years, keep your property.
Chapter 13 is for people with regular income who need time, not liquidation. You propose a 3 to 5 year plan sized to your actual budget, and as long as you make the plan payments, creditors must accept it. It is a powerful foreclosure defense written directly into federal law: filing stops the sale, and the plan lets you cure mortgage arrears over years instead of in one impossible lump sum.
It is also the chapter for people who earn too much for Chapter 7, who have non-exempt assets they want to keep, or who need to manage tax debt and support arrears on a court-protected schedule. At the end of the plan, remaining qualifying unsecured debt is discharged.
Strongest fit when
- Behind on a mortgage or car loan and determined to keep the property
- Steady income but above the Chapter 7 means test
- Tax debt, support arrears, or non-exempt assets that need a structured solution
Major deadlines in a Chapter 13 case
Day 0
Petition filed, automatic stay begins
A pending foreclosure sale is halted. Garnishments and collection lawsuits stop.
Day 14
Schedules and the Chapter 13 plan due
Your repayment plan is filed alongside the schedules, laying out exactly what each class of creditor receives.
Day 21 to 50
341 meeting of creditors
The trustee reviews your plan and budget. We attend with you, prepared.
Day 30
First plan payment due
Payments begin within 30 days of filing, even before the plan is confirmed, which shows the court your plan is real.
About day 45 after the 341
Confirmation hearing
The judge approves the plan. Once confirmed, it binds every creditor in the case.
Years 3 to 5
Plan payments, then discharge
You complete the plan and a short financial management course before the final payment. Remaining qualifying unsecured debt is discharged.
Business reorganization
Restructure debt while the business keeps operating, under court protection.
Chapter 11 lets a business in trouble restructure its obligations while continuing to operate. Management usually stays in place as the debtor in possession, with the powers of a trustee: you can reject burdensome leases and contracts, restructure secured debt, and bind dissenting creditors through a confirmed plan.
It is court-supervised and disclosure-heavy, with monthly operating reports due every month, and it is built for cases where the stakes justify the structure: operating companies with real revenue, significant secured debt, landlord disputes, or litigation pressure. Some individuals with debts too large for Chapter 13 also land here.
Strongest fit when
- Operating businesses with debt above the Subchapter V cap or complex creditor groups
- Companies in lease, lender, or litigation standoffs that need the stay and plan power
- Individuals whose debts exceed the Chapter 13 limits
Major deadlines in a Chapter 11 case
Day 0
Petition filed, company becomes debtor in possession
The automatic stay protects the business. Management stays in control of operations.
First days
First-day motions
Court approval to keep paying employees, use cash collateral, and keep the lights on without interruption.
Every month
Monthly operating reports due
Financial transparency to the court and the U.S. Trustee, every month, for the life of the case. The portal calendars every one.
Day 120
Exclusivity period
For the first 120 days only the debtor may file a plan, a window the court can extend. This is your leverage to shape the outcome.
Plan and disclosure
Disclosure statement and creditor voting
Creditors vote on the plan after receiving a court-approved disclosure statement.
Confirmation
Plan confirmed, business emerges
The confirmed plan binds creditors. The reorganized business moves forward on sustainable terms.
Small business reorganization, streamlined
Chapter 11 power without Chapter 11 weight, for small businesses under the debt cap.
Subchapter V, added to the Code in 2020, was built specifically for small businesses. It keeps the core powers of Chapter 11, the stay, the restructuring, the binding plan, and strips out the cost: usually no creditors committee, no separate disclosure statement, and a trustee whose job is to help the parties reach a consensual plan rather than to take over.
The owner stays in control, only the debtor may file a plan, and the plan can be confirmed even without a consenting class of creditors, as long as it commits the business's projected disposable income for 3 to 5 years and treats creditors fairly. It is available to businesses, and business owners, whose total debts fall under the statutory cap.
Strongest fit when
- Small businesses with total debt under the statutory cap
- Owner-operators who need to keep control and cannot afford a long Chapter 11
- Businesses where speed matters: the plan is due in 90 days
Major deadlines in a Subchapter V case
Day 0
Petition filed, owner stays in control
The automatic stay protects the business. A Subchapter V trustee is appointed to facilitate, not to displace you.
About day 60
Status conference
The court checks progress toward a consensual plan. You file a short report shortly before it.
Day 90
Reorganization plan due
Only the debtor may file a plan, and it is due 90 days after filing. The compressed clock is a feature: less time bleeding fees, faster certainty.
Confirmation
Plan confirmed, even without creditor consent
If creditors do not agree, the court can still confirm a fair plan that commits projected disposable income for 3 to 5 years.
Years 3 to 5
Plan payments, then discharge
Complete the plan and the remaining qualifying debt is discharged. The business, and its owner, move on.
Still not sure which door is yours?
That is exactly what the assessment is for. Answer plain-English questions for about 3 minutes and the portal maps your situation to the analysis above. An attorney confirms it before anything moves.
Run my free assessmentTalk it through
Not sure where you land? Ask us.
The decision tree above covers the common paths, but real cases mix factors. Leave your details and we will call you back to talk through yours, in English or Spanish. Free and confidential.
Or call now: (305) 792-9100
The right chapter changes everything.
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