When financial troubles hit, and hit hard, bankruptcy can often be the best way to rein in those troubles and get a fresh financial start. But, some may not realize there are several bankruptcy options available for Florida families, and the exact nature of the financial troubles can determine which type of bankruptcy is best. Knowing the facts about Chapter 13 bankruptcy compared to other types can help you decide if it is or is not the best option for your situation.
Chapter 13 bankruptcy is, in essence, a type of repayment plan. Debt is divided up into secure debt and unsecured debt. With this type of bankruptcy, all of your secure debt is paid back over a time period of three to five years. A percentage of unsecured debt, such as credit card debt and medical bills, may still be owed.
Aside from giving you time to pay back what you owe and have a hard time paying in full under the current circumstances, there are other reasons to consider Chapter 13 bankruptcy. If you do not meet the means test for Chapter 7 bankruptcy, you can still file Chapter 13 and get many of the same benefits. Also, you can have the time to catch up on mortgage payments and not lose your home, as may be the case if you have to file for Chapter 7 bankruptcy.
The choice to file for bankruptcy can be highly emotional and also a very serious financial decision that should not be taken lightly. It is also important to understand the facts and separate the myths that are associated with bankruptcy in general in Florida. Our website has more information about Chapter 13 bankruptcy so you can better determine if Chapter 13 bankruptcy is right for you.