When families struggle financially, one option for ending the struggle and regaining financial control is to file for bankruptcy. However, deciding to file for bankruptcy is only the first step. The type of bankruptcy then has to be determined. For some families in Florida, the debt repayment plan allowed under Chapter 13 bankruptcy is the right choice.
Chapter 13 bankruptcy is an option for some Floridians for a number of reasons. One reason is simply the fact that some people will not qualify for a Chapter 7, leaving them with limited viable options once they realize Chapter 7 is not a possibility. Another reason Chapter 13 is chosen over other types of bankruptcy is that it gives a petitioner the ability to keep some assets that would be lost otherwise.
A Chapter 13 filing results in a repayment plan that can help families repay their debts in an organized manner. For many families, the chance to pay their debts over a three-to-five year period is all that is needed to regain financial security and get back on their feet. In addition, the repayment plan allows petitioners to avoid the liquidation of assets that would be sold under a Chapter 7 bankruptcy.
While bankruptcy may not be right path for every financial situation, it can be a lifesaver for some Florida families. Learning about the benefits of Chapter 13 bankruptcy, including understanding how a debt repayment plan works, is a good first step. Our firm provides more information about Chapter 13 bankruptcy on our website so families can move forward with a better understanding.