If you have reached a point in your life where you are considering bankruptcy, the first thing you should do is take a step back and take a deep breath. Although it might seem overwhelming and daunting, bankruptcy is not the end of the world. Think of bankruptcy as a relatively minor speedbump in the financial journey of your life. In fact, bankruptcy could very well be the best possible option for the current situation which you are in. There are, however, a number of bankruptcy options for you to consider. Since the actions that you take now will affect you for the rest of your life, it is critical that you choose the right option for your individual case. A Wesley Chapel bankruptcy attorney can help you choose and follow through with a bankruptcy plan that will get your life back on track.
Florida Chapter 7 bankruptcy
Commonly referred to as ‘straight bankruptcy,’ Chapter 7 bankruptcy is the most common form of bankruptcy for consumers and businesses. When you file a Chapter 7, some of your assets may be considered exempt. All nonexempt assets will then be sold off to pay the debt you owe to creditors. There will be a designated trustee assigned to manage and oversee these payments. Once your nonexempt assets have been liquefied to pay your creditors, your remaining debts will be cancelled. Keep in mind, however, that there are a few types of debts that cannot be absolved through a Chapter 7 bankruptcy.
Although this type of bankruptcy can be effective at eliminating debt, it may not be the best option for you. Specifically consider a Chapter 7 bankruptcy if you fail to qualify for a Chapter 13 bankruptcy, you risk being sued by your creditors, it will be absolutely impossible for you to pay off your debts, or your debts are without co-signers.
Florida Chapter 13 bankruptcy
Rather than absolving your debts, a Chapter 13 bankruptcy is more of a payment plan that is supervised by the court. It will allow you to repay your debts in realistic amounts in relation to your family’s income and expenses. With Chapter 13, you will end up paying creditors at least as much as they would receive from your non-exempt property in a Chapter 7 bankruptcy. You will continue to pay your debts in accordance with your payment plan until all debts are settled, or until a period of five years has ended.
Consider a Chapter 13 bankruptcy if you have debts with cosigners, you have already filed a Chapter 13 within the past six year or do not qualify for a Chapter 7 for other reasons, you have assets that you do not want being liquidated in a Chapter 7.
If you have any questions about Florida bankruptcy, or if you would like to speak to a Wesley Chapel bankruptcy attorney about your options, please contact North Tampa Law Group at (813) 518-7411 or complete a free online case evaluation. We represent clients during stressful and difficult times in their lives. We are empathetic, responsive, and push for a quick resolution. We look forward to helping you resolve your issue quickly, fairly, and in a way that will help you to return to the stable, predictable life that you deserve.