Filing for bankruptcy in Florida can be an intimidating process. While you may be looking forward to the chance at eliminating your debts quickly through a Chapter 7 bankruptcy, you could find there are greater benefits in a Chapter 13 filing. Here is why:
Secured and priority debt resolution — Unlike filing for a Chapter 7 bankruptcy, Chapter 13 can allow for a wider range of debts to be included in the filing. You can eliminate unsecured debts such as credit cards and medical bills, but may also be eligible to include secured debts like mortgages and tax debts. Chapter 13 can strip away second mortgages or liens on your home, while you keep the home and continue payments on the plan.
Less liquidation risk — Since you can include secured debts in a Chapter 13 case there is less chance of having the asset liquidated. Since you repay the court specified amount of your debt, even your nonexempt property is protected from creditors. After your Chapter 13 plan is completed, creditors will not be able to collect on the debt or have rights to your assets.
Future credit score boost–While it is known that filing for bankruptcy can put a mark on your credit report, removing debt balances and delinquencies through bankruptcy provides a clean slate to rebuild your credit. Many creditors are more willing to extend you new credit if you have repaid your debt through Chapter 13 than having it eliminated in a Chapter 7 filing.
Filing for Florida Chapter 13 can put you on the track to financial freedom. Consult with a Florida bankruptcy lawyer to learn more about how Chapter 13 can benefit you.