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What are the benefits of Chapter 7 bankruptcy?

On Behalf of | Oct 15, 2015 | Chapter 7 Bankruptcy, Firm News

When debt relief is needed or a family is in need of outside help to regain financial stability, there are several options that may be pursued. Filing for Chapter 7 bankruptcy can be a wise move for some in Florida. It may be beneficial to learn the facts about Chapter 7 bankruptcy and how it may be the best resolution for your particular financial situation.

Chapter 7 bankruptcy can only be filed after taking a means test. Once a petition is properly filed, Chapter 7 bankruptcy gives filers a reprieve from the harassment of creditors. It also halts home foreclosure action. These benefits alone can give homeowners a chance to regroup and restructure their finances to best deal with all debt, including mortgage debt.

While Chapter 7 bankruptcy is referred to as a liquidation bankruptcy, certain property is exempt. Florida residents enjoy some of the most liberal exemptions in the country, including one for homesteads. Understanding what property may be exempt can quell fears of losing everything during the bankruptcy process.

Bankruptcy can be confusing, and there will always be some misinformation about the process, particularly when it comes to Chapter 7 bankruptcy. The laws and procedures surrounding Chapter 7 bankruptcy also evolve over time, meaning someone who filed decades or even years ago may not be the best source of accurate information. Our website has up to date information about these proceedings so Florida families can rest assured they are making the best decisions regarding how to responsibly confront debt and financial struggles that have become unmanageable.

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