For many people, there comes a time when the financial realities they face simply will not get better with time or even by carefully monitoring finances. If debts continue to grow and paying off what is owed is not an option, it may be time to pursue bankruptcy. Luckily, for many, Chapter 7 bankruptcy can lead to debt relief. Florida residents may want to learn about the different types of bankruptcy and then decide which type fits their individual situations.
One benefit of Chapter 7 bankruptcy in particular is that most debts can be discharged. This can include debts related to credit cards, medical bills and personal loans. The discharge of overwhelming debts can help restore financial order and let petitioners get fresh financial starts.
In order to pursue Chapter 7 bankruptcy, there are several steps and qualifying factors. One is the means test. This evaluates a person’s income in relation to others living in the same area who have the same size families. If you are above the mean income, you may need to consider filing for a Chapter 13 bankruptcy instead. It is also important to know that there are specific debts that cannot be discharged through a Chapter 7 bankruptcy.
A Chapter 7 bankruptcy can be a complex and difficult process for some to understand, and it can often be shrouded in myths and misinformation. Anyone in Florida considering taking this path toward debt relief may benefit from understanding all of the facts and learning how his or her particular situation may be impacted. Our website further outlines the specifics of Chapter 7 bankruptcy.