Many Florida residents understand that they need help to address serious financial challenges, but they may not always know what kind of assistance for legal options they are entitled to. Filing for bankruptcy is one option that has proven to be very successful for countless Americans throughout the years, but different forms of bankruptcy can be more helpful to people under specific circumstances.
Chapter 13 bankruptcy differs from Chapter 7 bankruptcy in several ways, one of them being that a trust fund is established in order to pay off creditors. A person known as a trustee is charged with managing the trust, and enforces the terms of the bankruptcy plan by distributing trust funds to the appropriate parties. People that file for Chapter 13 agree to pay into the trust fund and follow the terms of the bankruptcy agreement, while being released of some of their liability as debtors.