Tallahassee, FL asked in Bankruptcy and Consumer Law for Florida

Q: What are considered the key advantages and disadvantages of filing for Chapter 7 & 13 bankruptcy in the State of Florida

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1 Lawyer Answer
T. Augustus Claus
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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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