Bankruptcy in Florida Pros and Cons

Bankruptcy in Florida is the legal process of discharging some or all of your debt. It is a way to start over with a clean financial slate. If you’re considering bankruptcy in Florida, you may want to know about the benefits and drawbacks involved. Here is everything you need to know about bankruptcy in Florida and its pros and cons.

It can be a scary thing to search for information online about the pros and cons of bankruptcy in Florida. Some sites tell you that filing bankruptcy is the worst thing you can do, while others say bankruptcy is actually a good thing. With all of the different factors involved in a bankruptcy case, it’s hard to reach an accurate conclusion yourself. If you’re struggling with financial troubles and don’t have the time or resources to determine which course of action is best for your situation, don’t worry – Bruner Wright P.A. is here to help!

The Pros and Cons of Chapter 7 Bankruptcy

Bankruptcy doesn’t mean you are “broke.” It simply means your debts exceed your assets. Chapter 7 bankruptcy allows you to pay creditors by selling non-exempt assets, which include:

  • Your second home
  • A second vehicle that you own
  • Personal possessions such as jewelry, collections, and other valuable items

You can usually keep your car, your home, and any insurance policies you have.

Pro: Most of Your Debts Can Be Discharged

According to the Florida Bar, you can discharge most of your debts by filing for Chapter 7 bankruptcy. This means creditors can’t ask for money from you and you don’t have to repay certain things.

Pro: Chapter 7 Bankruptcy Is a Relatively Quick Process

You need a new financial start now. It will take only a few months to file Chapter 7 bankruptcy if you are eligible. This is a significant difference from other filing chapters that can take up to five years.

Pro: Chapter 7 Releases You From Future Obligations

Your assets are now liquidated and you have a stable financial foothold. Debtors cannot take your income or request more money. After your case is closed, the money you earn after it ends remains with you and does not go towards any unpaid debts.

The Cons of Filing for Chapter 7 Bankruptcy

While there are many advantages to filing Chapter 7 bankruptcy, it may not be right for you. Depending on your circumstances, you might be able to benefit from another Chapter (like Chapter 13).

These are the cons of filing for Chapter 7 bankruptcy in Florida.

Con: You Can Only File As an Individual

Businesses and organizations are not eligible for Chapter 7 bankruptcy. This applies to both individuals and married couples. Sometimes, spouses might need to file separate cases.

Con: Chapter 7 Bankruptcy Does Not Discharge All of Your Debts.

According to the Florida Bar, Chapter 7 bankruptcy doesn’t discharge the following:

  • Child support payments
  • Some student debt
  • Debts you incurred after filing for bankruptcy
  • Penalties for criminal offenses
  • Major taxes

The chapter does not guarantee that co-signers will not be required to repay loans or other debts.

Con: You Might Not Pass The “Means Test”

You must pass a means test to determine if you are eligible for the filing. This test, according to the United States Bankruptcy Court, takes into account your dependents, transportation costs, and other financial information.

You must meet certain requirements to be eligible for Chapter 7 bankruptcy. Also, you might need to file for Chapter 13 bankruptcy if you fail the means test.

Con: Public Record for Chapter 7 Bankruptcy Filing

After your case is settled, anyone can access the fact that bankruptcy was filed. This includes future investors, partners, businesspeople, and future employers. Although it is not shameful to file for bankruptcy, this could have a negative impact on your business prospects and make it difficult to get loans.

Bruner Wright P.A. can help you determine which chapter of bankruptcy is right for you.

Filing for bankruptcy in Florida can be stressful. Although it is important to keep your finances in order, the filing process can become time-consuming. Our team of Jacksonville bankruptcy lawyers will manage your case so you can look forward to a fresh start.

How Bruner Wright P.A. Can Help

  • Find out which chapter applies to you
  • Collect all documentation required to file your case
  • Communicate with creditors
  • Explain your legal options
  • Participate in any meeting

Filing for bankruptcy involves a lot of paperwork and procedures. It doesn’t matter if you don’t worry about it. You can have your bankruptcy lawyer in Florida handle it all.

Talk to an Experienced Florida Bankruptcy Attorney Today

When you are facing financial problems it can be a difficult decision about what to do. Should you file for bankruptcy? If you want to take the next step in eliminating your debts, then speak with a bankruptcy attorney in Florida

If you need help filing for bankruptcy, we can review your situation and see if you qualify. As an experienced Florida bankruptcy attorney, Bruner Wright P.A. has the experience and capabilities to help you file for bankruptcy relief. While our offices are headquartered in Tallahassee and Jacksonville, we have clients and serve the entire North Florida region. For more information, contact us today!