We can plan, budget, and save to try to keep our heads above water, but sometimes life has other plans for us. Extenuating circumstances can temporarily get the best of us, but there are options and help when it comes to getting back on your feet.
From January through April of 2019, roughly 8,894 people have already filed for bankruptcy that reside in Florida’s Middle District. In the state of Florida, you have two options to file bankruptcy as an individual, Chapter 7 & Chapter 13. This informative infographic breaks down the differences and similarities.
Chapter 7 bankruptcy, also referred to as liquidation, is the most common type of bankruptcy filed in Florida. It allows those in debt to basically wipe the slate clean and start over with no debt.
Your monthly income must be lower than the state median income, or your expenses must be higher than the median in order to qualify.
Filing under Chapter 7 can eliminate debt caused by:
Filing under Chapter 13 bankruptcy is ideal for those who want to pay back all or most of their debt, but are petitioning for extra time to do so. The filer must come up with a payment plan and submit it to the court to be approved. Once approved, it usually takes between 3-5 years to complete the payment plan.
Benefits of filing under Chapter 13 instead of Chapter 7 are that you are safe from legal actions and wage garnishments from creditors. Creditors are not allowed to contact you at all once your payment plan has been approved. Your assets such as a home or vehicle are also safe from liquidation, unlike under Chapter 7.
Chapter 13 can include: