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Impact of Chapter 13 or Chapter 7 bankruptcy on a Florida filer

On Behalf of | Nov 10, 2016 | Chapter 7 Bankruptcy, Firm News

The economy may be recovering from the Great Recession, but many Florida residents are still struggling financially. Many consumers continue to have trouble just making ends meet. Someone in dire financial straits might be considering filing for Chapter 13 or Chapter 7 bankruptcy, but are not sure what either option can accomplish.

Chapter 13 puts the filer on a payment plan that ordinarily lasts anywhere from three to five years. People who want to keep their homes, but are significantly behind on their payments, often file this chapter of bankruptcy. However, it most often requires the filer to have a steady income and enough disposable income to support the plan.

Chapter 7 is called a liquidation bankruptcy, but many people in Florida are able to keep their property because it falls within the state’s liberal bankruptcy exemptions. A discharge under this chapter could be issued in as little as three to four months. It is typically designed to wipe the slate clean, even though some debts cannot be discharged.

Regardless of whether an individual files for Chapter 13 or Chapter 7 bankruptcy, there are some advantages both chapters share. Once the petition is filed, all collection activities against the filer must cease until or unless a creditor receives permission from the court to proceed. This means that any lawsuits, garnishments or foreclosures are halted in their tracks. Furthermore, those annoying phone calls from creditors must stop during the proceedings. In order to understand what filing for bankruptcy can do for a particular individual, it would be beneficial to discuss the situation with an attorney who practices in this area regularly.

Source:, “What is bankruptcy and what can it do for you?“, Oct. 27, 2016

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