Which Type of Florida Bankruptcy Is Right for Me?

Posted on : February 6, 2019
Bankruptcy Options with Caplan Bankruptcy, Orlando, Florida

There are two primary types of bankruptcy for individuals

— a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. Each accomplish different things and the right fit depends on a lot of factors. Here’s what you need to know about each to find out which type of Florida bankruptcy is right for your needs.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy allows you to liquidate your assets to pay towards your debt and any unsecured debt that is left over once all non-exempt assets have been exhausted is discharged. When a debt is discharged, you no longer owe any money to that creditor. Not all debts can be discharged — secured debts, like student loans and tax debts, cannot be discharged.  

Who It May Be Right For

  • Individuals with a lot of unsecured debt, like medical bills and credit card bills
  • Individuals who do not have a high enough income to satisfy their debt

Who It May Not Be Right For

  • Individuals with a lot of non-exempt assets  
  • Businesses

Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy, you are allowed to keep your assets and all your debt will be paid back in 3-5 years. Payments are made to the court and are divvied up among your creditors with the highest priority creditors being paid first. Any debt that is left over after the payment plan has been completed is discharged, but this typically is a very low amount if any.

Who It May Be Right For

  • Individuals with a lot of non-exempt assets
  • Individuals who have the means to pay off their debts

Who It May Not Be Right For

  • Individuals who have low incomes
  • Businesses

Getting Legal Guidance

Typically, people don’t fall directly into one category or the other — there’s often a mix of the two and determining which type of bankruptcy will have the most benefit can be challenging. This is where it becomes important to consult an experienced bankruptcy attorney. An attorney will review your specific case and make a recommendation as to what action you should take next.

Contact Caplan Bankruptcy and Family Law Firm Today

At the Caplan Bankruptcy and Family Law Firm, we are passionate about helping individuals and families who have become burdened by debt and are having difficulty getting out of it. We’re committed to providing you with the tools and resources you need to get a clean financial slate. Contact us today to learn more about the different types of bankruptcy or to schedule your consultation to discuss your case. Call now at 407-543-1801.