I Need Help Now
Special Discounts For
Hurricane Victims!
Nowack & Olson, PLLC
South Florida
Bankruptcy Attorneys
Free Consultation
888-813-4737

Should you file for Chapter 7 or Chapter 13?

With many Florida homeowners continuing to experience financial challenges, filing for bankruptcy might seem like a good option to provide them some debt relief. Chapter 7 and Chapter 13 are two main forms of bankruptcy that may allow consumers struggling with debt to get back on their feet. Which type of bankruptcy to file for depends on several factors, including the amount of debt and home equity a person has.

Chapter 7 bankruptcy is also known as the fresh-start bankruptcy. It lets most people wipe out their debt, and can still allow them to keep their home, car, and some other assets. There are a few factors a bankruptcy court needs to consider before deciding if a homeowner can qualify for Chapter 7. If you don't have very much home equity, you stand a better chance of being able to file for Chapter 7.

Having a sizable amount in equity means the profit from selling a home can be used to pay off debts. In this case, consumers may wish to consider Chapter 13 instead if they want to keep their home. Chapter 13 reorganizes debt and allows consumers to repay it within three to five years. This protects homeowners against foreclosure and gives them a chance to catch up on overdue mortgage payments or property taxes while still retaining their assets.

Before deciding if bankruptcy can help you make a fresh financial start, it's important to weigh the differences between Chapter 7 and Chapter 13 carefully and speak with a bankruptcy attorney about your options.

Source: Bankrate.com, "Can you file Ch. 13 bankruptcy if you own a home?" Justin Harelik, Mar. 5, 2013

No Comments

Leave a comment
Comment Information
Email Us For a Response

Let Us Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Sunrise Office
8551 West Sunrise Blvd., Suite 208
Plantation, FL 33322

Toll Free: 888-813-4737
Phone: 954-349-2265
Plantation Law Office Map

Doral Office
8180 NW 36th St., Suite 102
Miami, FL 33166

Toll Free: 888-813-4737
Phone: 305-698-2265
Miami Law Office Map

Boca Raton & Delray Beach Office
6501 Congress Ave., Suite 100
Boca Raton, FL 33487

Toll Free: 888-813-4737
Phone: 561-463-2265
Boca Raton Law Office Map

Jupiter & Palm Beach Gardens Office
601 Heritage Dr., Suite 137A
Jupiter, FL 33458

Toll Free: 888-813-4737
Phone: 561-463-2265
Jupiter Law Office Map