When Florida residents hear the word “bankruptcy,” they probably picture doom and gloom for the financial situation of the person who might be going through that legal process. But, while it is true that many people who consider bankruptcy as an option are facing some tough financial circumstances, the reality is that bankruptcy is intended as a tool to help those individuals and families face their challenges and get through them to a more stable position.
Chapter 13 bankruptcy is one form of bankruptcy that Florida residents might consider to help them address mounting debt burdens. Crucially, however, Chapter 13 bankruptcy differs from Chapter 7 bankruptcy in that – for the most part – the bankruptcy filer is allowed to keep many of the assets they own both during and after the bankruptcy process.
Is Chapter 13 for you?
Another big difference between Chapter 13 and Chapter 7 bankruptcy is that Chapter 13 prioritizes the repayment of debts. Whereas Chapter 7 bankruptcy is commonly referred to as “liquidation” bankruptcy due to the need to sell off assets to repay debts, Chapter 13 focuses on the filer’s ability to repay the debts with a structured plan in place instead – all the while keeping their assets. Of course, some debt discharge may still be included in the ultimate result of a Chapter 13 bankruptcy filing.
Choosing bankruptcy – and then determining which form of bankruptcy is right for you – are tough decisions. Any Florida residents who are weighing whether or not to go down that path should be sure to get the right legal information for their own unique financial situation.