Filing for bankruptcy can be the ideal reprieve for some borrowers who are struggling to make ends meet and make their required monthly payments. When creditors are constantly calling, your home is facing foreclosure, and/or your vehicle or other property is at risk for repossession, filing for bankruptcy can be a means to get your financial life back on track. 

There are different “Chapters” of bankruptcy; for individuals, Chapter 7 and Chapter 13 Bankruptcy are the primary ways to file for bankruptcy and find the financial relief and clean slate they are looking for. Legacy Law of Florida can assist individuals wanting to file either Chapter 7 or Chapter 13 Bankruptcy or help review their finances to see which option would be the most beneficial.

Chapter 7 vs Chapter 13 Bankruptcy

Chapter 7 Bankruptcy is considered a complete fresh start—nearly all debts are wiped from your ledger. Under Chapter 7, the majority of your assets are liquidated and used to pay creditors as much as possible with the remaining balance cleared.
Chapter 13 Bankruptcy is more of a reorganization and settlement of your debt. This option is the most common type of bankruptcy for individuals to file. Under Chapter 13, you maintain ownership of your assets (including the opportunity to continue your responsibility on a leased vehicle or mortgaged home). Your total debt is compared to your financial status and over the next 3 to 5 years, you make monthly payments based on what you can afford.

Exceptions & Rules

As with any legal or financial process, Bankruptcies have their own exceptions and rules as to who can file and how often, what debts can be cleared and which must be repaid, and what property should be liquidated or kept. This can make for a complicated process. 

Contact Legacy Law of Florida if you are considering Bankruptcy as a means of financial reprieve. We will help you to review your current financial standing and see if and which Bankruptcy Chapter will best serve your interests.
Bankruptcy FAQs

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