Not every family suffers from the same financial problems. Therefore, the same solution to financial problems will not fit every family’s needs. For some struggling in Florida, one option that may be a good fit for regaining control over finances is filing Chapter 7 bankruptcy.
Chapter 7 bankruptcy can be a beneficial tool for some who have certain types of debt. Debt such as medical bills, credit card bills and payday loans can be discharged. This means the debts can be written off and do not need to be paid back. This can be invaluable when these are the types of debt that have led to financial problems and affect the future of a family.
When a family believes Chapter 7 bankruptcy is the right choice, a means test must be applied first. This is a formula that determines if you qualify for Chapter 7 bankruptcy. It uses financial information and the adjusted median income for your family size to determine if you are below or above the amount to qualify. For those who find they do not qualify, there are other bankruptcy options that may be more appropriate.
Chapter 7 bankruptcy can be a process that works much like liquidation, and it can give families a fresh start while protecting certain assets. Knowing the types of debt that can be discharged and what may be exempt is important and can help a Florida family decide if Chapter 7 bankruptcy is the right choice. Our website has more information about Chapter 7 bankruptcy in particular and what the overall process may entail.