When a person is struggling with overwhelming debts, the right path for them to get a fresh start will depend on their specific circumstances. This is why there are so many types of bankruptcy to choose from.
If you are considering filing for bankruptcy as an individual debtor in the state of Florida, it is important that you weigh your options. This will help you make confident and positive decisions about your financial situation going forward.
Why might a Chapter 13 filing be a better option than a Chapter 7 bankruptcy filing?
Some people may find that Chapter 13 bankruptcy will work best for them. Chapter 7 has several advantages; however, it is subject to a means test. This means that your income and expenses will be evaluated for suitability for Chapter 7. If a person does not pass the Chapter 7 means test, it is likely because their income is too high or because their expenses are too low. In this situation, they may want to consider filing instead for Chapter 13 bankruptcy.
If you are facing the repossession of your car or house and you don’t want to lose it, Chapter 13 bankruptcy may also be the best option for you. This is because the monthly payment plan that you create as part of the plan will help you repay what you owe on your mortgage or car loan.
If you are struggling with debt in the state of Florida, it is important that you understand the advantages and shortcomings of all bankruptcy chapters so that you can make the best decision possible.