If you are facing financial difficulties, you might benefit from filing bankruptcy. There are several types of bankruptcy: Chapter 7, Chapter 11, Chapter 12 and Chapter 13. At Tampa Law Group we handle Chapter 7 and Chapter 13 bankruptcies as these are typically utilized by the consumer debtor.
There are benefits and consequences to filing bankruptcy and bankruptcy is not appropriate for everyone experiencing financial problems. It is important to consult an attorney to determine if bankruptcy is the right option for you and if so, which chapter is appropriate for you.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy acts to discharge all of a debtor’s debt with certain exceptions. Upon the filing of a chapter 7 bankruptcy, a trustee is appointed by the Bankruptcy Court to take over the debtor’s assets. The trustee is then permitted to liquidate any of these assets that the trustee deems to be of sufficient value in order to distribute the funds to the debtor’s creditors. However, the debtor is permitted to retain certain property.
Chapter 13 Bankruptcy
In a chapter 13 bankruptcy, the debtor is permitted to retain the debtor’s assets. However, the debtor must re-structure and re-pay a certain amount of the debtor’s debts to the debtor’s creditors, typically over a period of 3 to 5 years. A re-payment plan must be approved by the Bankruptcy Court. A trustee is appointed by the Bankruptcy Court. Payments made by the debtor under the re-payment plan are made to the trustee who then distributes the funds to the debtor’s creditors.
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