What Are My Options For Personal Bankruptcy?


Thousands of people file for bankruptcy every year – you are not alone. Losing control of your debt and finances doesn’t make you a failure. Help is available. If you have very large debts and no way to pay, bankruptcy could be an appropriate option. Consult with a West Palm Beach bankruptcy attorney to determine if bankruptcy is appropriate for your situation.

Personal bankruptcy filers can generally choose between two types of bankruptcy: Chapter 7 or Chapter 13. The differences between the two are quite drastic.

Chapter 7

Also known as liquidation, Chapter 7 allows filers to eliminate many types of debt. If you qualify for Chapter 7 – meaning your income does not exceed Florida’s median income – your non-exempt property may be sold to pay off your debts to creditors. However, in most cases you can keep your home, car and retirement savings. Certain non-dischargeable debts, such as child support, student loans and alimony, cannot be eliminated. Consult with a bankruptcy lawyer in West Palm Beach before filing for Chapter 7 to avoid pitfalls and problems.

Chapter 13

If your income exceeds Florida’s median income standards, Chapter 13 may be the right bankruptcy option. Instead of eliminating debts, Chapter 13 reorganizes debts. Applicable debts are consolidated into one monthly payment and then distributed to creditors by means of a bankruptcy trustee. Your property will not be sold. However, certain debts cannot be consolidated and must be paid off separately.

In some severe cases, Chapter 11 can be used for a personal bankruptcy filing. To find out more about personal bankruptcy, contact the Law Offices of Scott H. Sweigart. We are dedicated to protecting the financial futures of our clients.

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