Bankruptcy does not have to be a bad idea. You can get a new start by letting go of some or all of your debts. Which chapter of bankruptcy would be best for you? Do you think Chapter 7 Bankruptcy Florida can help you?
There are six bankruptcy chapters. Each chapter has a different set of requirements, even though they all share a similar goal. Chapter 7 bankruptcy is the most popular form and is also called the “liquidation chapter”. It allows you to discharge some debts quickly, but it also requires that you sell certain non-exempt property.
Continue reading to find out more about Chapter 7 bankruptcy and its pros and cons in Florida, and how it may affect your financial situation.
Understanding the Benefits of Chapter 7 Bankruptcy
It does not mean you are “broke.” Rather, bankruptcy means your debts exceed your assets. You can pay your creditors in Chapter 7 bankruptcy by selling non-exempt property, such as:
- Second residence
- You own a second vehicle
- You can also keep valuable personal items such as jewelry, collections and other valuable items.
It is possible to keep your home, one car, and the various insurance policies you currently have.
Pro: You Can Discharge Most of Your Debts
The Florida Bar states that Chapter 7 bankruptcy can be used to discharge the majority of debts. You are no longer obligated by certain obligations to repay debts and creditors.
Pro: Chapter Seven Bankruptcy Is a Relatively Quick Process
You need a new financial start and you need it right now. You can complete Chapter 7 in a matter of months if you meet the requirements. It is different than other filing chapters that can take up to five years.
Pro: Chapter 7 Releases you From Future Obligations
Your debtors cannot take your income if you have liquidated your assets and have a stable financial base. They can also not ask for more money. After your case has ended, the money that you earn remains with you and does not go towards any unpaid debts.
Call +185-0385-0342 to speak with a Chapter 7 bankruptcy Florida attorney today.
The Cons of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is not right for everyone. Depending on your situation, you might be better off filing under another Chapter (like Chapter 13).
There are some disadvantages to filing Chapter 7 bankruptcy Florida.
Cons: You Can Only File as an Individual
Chapter 7 bankruptcy does not apply to organizations or businesses. Chapter 7 bankruptcy is only for individuals and married couples. Sometimes, spouses will need to file separate lawsuits.
Cons: Chapter Seven Bankruptcy Does Not Discharge All of Your Debts
According to the Florida Bar, Chapter 7 bankruptcy doesn’t discharge:
- Support payments for children
- Some student debt
- You may be liable for debts incurred following bankruptcy
- Fines for criminal offenses
- Taxes on goods and services
The co-signer does not need to repay any loans or debts.
Cons: You might not pass the “Means Test”
You must first pass a test called the means test to determine if you qualify for this type of filing. According to the United States Bankruptcy Court, this test takes into account your dependents, your transportation expenses, and any other financial information.
If you want to file Chapter 7 bankruptcy, there are certain requirements. You may have to file Chapter 13 bankruptcy if you don’t “pass” the means test.
Cons: Chapter 7 Bankruptcy Is Public Record
Anyone who is interested in knowing the details of your bankruptcy case can find out about it once you have resolved your case. It could be future employers, business partners, investors, or even potential investors. Although there is nothing wrong with declaring bankruptcy, it could hurt your business prospects in the future and make it harder to get loans.
We Can Help You Determine Which Chapter of Bankruptcy Is Right for You
Filing for bankruptcy can be stressful, especially if you are trying to manage your finances. You can look forward to a fresh start with our team handling your case.
You can:
- Choose the correct chapter for your situation
- We need the following documents to file your case
- Communicate with your creditors
- Explain your legal options
- Reply to any meetings
Filing for bankruptcy involves a lot of bureaucratic red tape and protocol. But you don’t need to worry. You can leave it to your Bruner Wright Florida bankruptcy attorney.
Contact Our Florida Attorneys Today
Call Bruner Wright for More Information. One phone call will set you free from debt. Our team can help you weigh the pros and cons of filing Chapter 7 bankruptcy Florida. Contact our team to get started on your case.