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Florida Bankruptcy FAQS & Answers
WHAT IS BANKRUPTCY?
Bankruptcy is a process by which the debtor may relieve themselves of several kinds of debts. There are different kinds of bankruptcy in Florida. The level of relief, the bankruptcy process, and the bankruptcy alternatives that are available vary depending on which kind you choose.
WHAT IS A CHAPTER 7 BANKRUPTCY?
A chapter 7 bankruptcy case is the most common type of bankruptcy and involves the resolution of all debt (except for certain types of debt protected by statute). However, in order to be eligible for Chapter 7 bankruptcy in Florida, one must qualify for it by taking a "means test". Those who fail to quality may apply for Chapter 13 bankruptcy. This form of bankruptcy consists in the formulation of a debt re-payment plan approved by the bankruptcy court.
WHAT IS A CHAPTER 13 BANKRUPTCY?
Chapter 13 bankruptcy consists of a partial relief of debt because it works through a process to allow the formulation of a debt repayment plan. In a Florida Chapter 13 bankruptcy you will not need to liquidate your assets in order to repay the debt. In certain circumstances, you may be able to remove a second mortgage or home equity loan from your residence or use Chapter 13 bankruptcy to permanently modify your mortgage loan.
