Q: What are considered the key advantages and disadvantages of filing for Chapter 7 & 13 bankruptcy in the State of Florida
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- (702) 463-4900
- View Profile
- Answered
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.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
