If you & # 39; re considering filing for bankruptcy in Florida, you can be sure which type is right for you? There are three different types of bankruptcy, Chapter 7, Chapter 13, and Chapter 11. Each is designed to offer assistance from lenders to those who give, and each of them has certain rules and regulations that are used to determine who can use what.
With Chapter 7 bankruptcy, those who file is able to carry out all unsecured loans, such as those associated with credit cards, medical bills and personal loans, protecting assets from creditors, the court finds liberation. The property, which is exempt includes your home, primary vehicle and personal belongings.
Taxes, mortgages, car payments and other debts are not forgiven in accordance with Chapter 7, and the perpetrators may still lose your car or house, if they do not make timely payments. To file for personal bankruptcy under Chapter 7, the debtor must qualify subjected to a means test or perform certain financial criteria. A qualified bankruptcy attorney can explain the process to you and help you determine whether you qualify for Chapter 7.
Chapter 13 & # 39 is another form of personal bankruptcy. If you do not meet the test means to Chapter 7, there is a chance, if you're crushing debt that you can qualify in accordance with chapter 13. Chapter 13 allows the lender to pay the debt on a schedule established by the debtor and approved by the court.
Under Chapter 13, a person filed for bankruptcy, usually pay a certain percentage of their debt off and the rest will be easy. The court usually gives the debtor from three to five years to take care of their accounts. After that, all debts, or & # 39 they are paid or not, say goodbye.
How is chapter 7, the person who filed for Chapter 11, must pay taxes, mortgage loans, car loans and other such debts, and to keep current on all. After the payment schedules are approved, the debtor establishes payments to the court, and the court shall pay to the lender on time.
The third variant of bankruptcy, Chapter 11, as a rule, is less common than the other two. It & # 39; because Chapter 11 of & # 39 is more complicated than Chapter 7 and 13, and are often more expensive. It also includes a greater risk. Chapter 11 is usually used by corporations, allowing them to reorganiz and negotiate with creditors on their debt. Sometimes individual business owners will use it when they have too much debt to file for Chapter 13, but still feel the need to file.