Q: What are considered the key advantages and disadvantages of filing for Chapter 7 & 13 bankruptcy in the State of Florida
A:
Chapter 7 advantages:
Most unsecured debts can be fully discharged.
The process is quicker than Chapter 13, often completed within months.
There's no requirement to repay debts.
Chapter 7 disadvantages:
You may have to liquidate certain assets to repay creditors.
A significant negative impact on your credit score.
Not everyone qualifies based on their income.
Chapter 13 advantages:
Allows you to keep most of your property while restructuring debts.
Stops foreclosures and allows arrears to be paid over time.
Offers a chance to catch up on missed payments for secured debts.
Chapter 13 disadvantages:
You're in bankruptcy longer, typically 3-5 years.
Legal fees might be higher.
Requires a steady income to meet repayment obligations.
Negative, though often less severe, impact on your credit score.
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