Key Difference between chapter 7, chapter 11 and chapter 13 bankruptcy
As per Florida law, there are 3 types of bankruptcy. The situations where a type of bankruptcy should be applied make different between them and to file a bankruptcy case, you must hire a seasoned bankruptcy attorney in Florida.
In simple words, Bankruptcy implies for a help from court to return to a good financial foot. It usually means surrendering any of your assets through asset liquidation process. Whereas in bankruptcy, it entirely depends on the type of bankruptcy you file decides the fortune of your property. This is the place where you learn the key differences between three main types of bankruptcy in Florida which include Chapter 7 bankruptcy, chapter 11 bankruptcy and chapter 13 bankruptcy.
Filing Chapter 11 Bankruptcy – Chapter 11 bankruptcy in Florida allows a corporate business, partnership or limited liability company firm to keep running their operations when bankruptcy process is on. As Chapter 11 encourages reorganization of company or individual’s finances as well as expenses to pay back the debts with regaining profits. And businesses are encouraged to make payments via a new repayment plan for debt.
The key reason to go for this type of bankruptcy is the debts discharge that happens when one makes all payments of unsecured creditor section. Once clearing this payment, one can demand from court to discharge the remainder from unsecured debts. If court grants your request, no creditor would come to collect payment remained in the unsecured debts. This is all about chapter 11 bankruptcy.
Filing Chapter 13 Bankruptcy – This type of bankruptcy allows one to maintain ownership on his/her property or assets; however is regulated by your assets only. Your non-exempt asset cost influences the amount unsecured creditors would get paid during this process. If you want to prevent repossession or foreclosure on your property, you would have to arrange payments for your car or mortgage loans.
Filing Chapter 7 Bankruptcy – In chapter 7 bankruptcy, the court appoints a bankruptcy trustee with an authority to liquidate your assets and enable you to make payments to creditors and clear your debts. So, when all your assets are being liquidated leaving your property as bankruptcy estate, you can file for Chapter 7 bankruptcy. Some exceptions are definitely there that help individuals survive and protect their assets for which one must look for a good bankruptcy attorney in Florida.
The idea of filing for any of the bankruptcy would be complex and tricky which require an expert legal assistance of a veteran bankruptcy lawyer. Hire an experienced bankruptcy attorney to make your journey easier and find verdict in your favour.
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