Some folks may not originally like the idea of pursuing bankruptcy. However, after the financial crisis hit Florida and the rest of the country, many hardworking homeowners found themselves looking at the benefits of this option. Once a homeowner decides that bankruptcy is perhaps the best solution, deciding which kind can be confusing. For many, Chapter 7 bankruptcy may be the ideal way to deal with mounting debt and get the fresh financial start a family may need.
Chapter 7 bankruptcy is a means of discharging debt. Only certain types of debt can be discharged, however. Credit card bills and hospital bills are types of debt that can be discharged. Before a person can pursue Chapter 7 bankruptcy, that person must pass a means test. This test calculates your income and expenses and determines if Chapter 7 bankruptcy is right for your situation.
Even though the thought of discharging debt may be very appealing, not all types of debt can be discharged under Chapter 7 bankruptcy. Child support debt and tax debt can’t be discharged. This means that, despite any bankruptcy filings or passing a means test, a person who owes child support and tax debt still needs to find a way to keep up with those payments or possibly face the consequences of ignoring that debt.
The bankruptcy process is often shrouded in myths and misunderstandings. Anyone in Florida who feels that Chapter 7 bankruptcy is the right choice for his or her unique situation would be wise to seek out the most up-to-date information. Our firm’s website can help clarify any confusion about Chapter 7 bankruptcy and other bankruptcy options you may be considering.