Even as the national economy begins to rebound, it is no doubt true that many Florida residents continue to suffer the ramifications of the housing crisis that has crippled the region. Unfortunately, those struggling with their financial obligations may feel as if there is no one for them to turn to for help. However, in some cases, it may be possible to file for Chapter 13 bankruptcy.

Chapter 13 allows a debtor to restructure his or her debt obligations under the aegis of a court and without the threat of creditor harassment. While under the protection of the court, they can come up with a debt repayment plan that puts them back on the path toward financial independence. Lately, many homeowners who are struggling with their mortgage have sought the refuge of a U.S. bankruptcy court.

In that vein, readers of this blog may be interested to hear of proposals in Congress that could help those who file for Chapter 13 bankruptcy. Under one of the proposals, homeowners who file under this chapter and who are underwater on their mortgage would be allowed to skip interest payments for five years. This would mean that their total payments would go directly toward the principal balance of their mortgage.

At the moment, the acting director of the Federal Housing Finance Agency has spoken out against the proposal, claiming it would cost taxpayers in the area of $100 billion. Whether or not this sum is correct, Florida homeowners struggling with their mortgage may not want to hold their breath while waiting for congressional action. Fortunately, Chapter 13 bankruptcy still offers a useful tool for reclaiming control over one's finances.

Source: The Hill, "California democrats cheer Obama's housing proposal, but want much more," Mike Lillis, Jan. 25, 2012