Types of Bankruptcies in Florida

Posted by Ocalabankruptcylawyer on January 9th, 2014

Bankruptcy is a legal proceeding in which an individual who cannot afford his/her bills gets an opportunity to start a new beginning. A bankruptcy falls under the jurisdiction of the +Federal Court. Once an individual files bankruptcy, an “automatic stay” prohibits a creditor from collection efforts for a certain period of time.

The most common question asked is “What type of bankruptcy should I file?” One can file bankruptcy under

• Chapter 13
• Chapter 11, in cases where a business is filing for bankruptcy
• Chapter 7
• Chapter 20

The answer to this question depends on the following –

• Total amount of debt,
• Total income and assets and number of dependents at home
• The main aim and objective of the client behind filing bankruptcy
• Evaluation of pros and cons of Chapter 7 and Chapter 13 bankruptcy

A thorough examination and a “means test” will determine which type of bankruptcy a client should file. Do you qualify for Chapter 7 bankruptcy? If yes, then what are the advantages over Chapter 13?

The following are the advantages of filing a bankruptcy under Chapter 7 –

• Almost all consumer debt is discharged permanently under Chapter 7 bankruptcy. On the contrary, under Chapter 13 the debtor may have to pay back a minimum of one part of his debts.
• A Chapter 7 bankruptcy is typically completed within about four months; however, Chapter 13 bankruptcy could take three to five years.
• A person can re-establish himself much sooner after filing a bankruptcy under Chapter 7 when compared to Chapter 13 bankruptcy.
• Costs incurred while filing bankruptcy under Chapter 7 is often much less when compared to Chapter 13.

It is wise to consult a bankruptcy attorney  to discuss your options before filing. This is because they are likely familiar with the legal proceedings and can provide sound advice. Lawyers normally recommend Chapter 7 bankruptcy if the debtor qualifies as it typically is in the debtor’s best interest to do so.

For more information on the same, one should speak to an attorney for more clarity and detail on bankruptcy. The best of the bankruptcy lawyers have a website. Browse the net and book an appointment today!

About The Author:

The Law Offices of Justin McMurray, P.A has the ability to effectively handle nearly every case. The Law Offices of Justin McMurray, P.A reviews your case and helps you to decide whether this is the best option for you or not. The firm guides you throughout the process to ensure that you get the most out of this opportunity to make a fresh start in life.