The bankruptcy process is not a one-size-fits-all way of dealing with debt. There are different types of bankruptcy to deal with different types of scenarios. Depending on your personal situation and what kind of resolution you are after, Chapter 13 bankruptcy may be the preferable choice to deal with debt. In Florida, there are several reasons to pursue and prefer Chapter 13 bankruptcy.
First of all, Chapter 13 is a choice that attracts those whose financial hardships are temporary in nature. This may mean those who are going through a divorce or who have lost a job and who know the situation will be better within a few years. The reason Chapter 13 bankruptcy may be preferable in this type of scenario is the fact that it can halt overwhelming late fees, and you keep assets while you repay what you owe and catch up on other financial obligations.
Other reasons Chapter 13 bankruptcy may be best is if you didn’t meet the criteria set for the means test. This may mean you make too much to file the more popular Chapter 7 bankruptcy but still know you can’t manage your debt on your own. Also, a Chapter 13 bankruptcy filing puts a stop to home foreclosure action and gives you much-needed time to catch up on mortgage payments.
Anyone in Florida who is in a position where bankruptcy is a viable option for debt control may benefit from understanding the different types before assuming one is best overall. Chapter 13 bankruptcy is essentially a repayment plan, and that may be exactly what you need. Our website has more specific information about Chapter 13 bankruptcy in particular.