Once a family decides it is in financial peril, there may be several options available as a means of regaining financial control or getting back on stable ground. For some, Chapter 13 bankruptcy may be the preferred option for regaining financial control. In Florida, chapter 13 bankruptcy may be the better choice over other forms of personal bankruptcy for many reasons.
One of the best reasons someone may choose Chapter 13 bankruptcy over the most common Chapter 7 bankruptcy may be the fact that he or she didn’t meet the qualifications under a means test. It is important to note that meeting the means test does not mean bankruptcy isn’t needed or the best move in the long-term. Under Chapter 13 bankruptcy, a person is essentially agreeing to a payment plan that is typically outlined for a three- to five-year period.
One great benefit to Chapter 13 bankruptcy in Florida is that a person can keep many of the assets that would be liquidated under Chapter 7. This can mean the difference between keeping and losing a house. Tax debts can also be discharged under Chapter 13 bankruptcy in a way that can’t be done under Chapter 7.
It will ultimately be the choice of the family or individual as to which type of bankruptcy may be best for any given situation. The details of Chapter 13 bankruptcy can be very appealing to those in trouble but do not qualify or want to pursue Chapter 7 bankruptcy. Our website has more detailed information about the benefits of Chapter 13 bankruptcy and how it differs from other options.