Bankruptcy Lawyers in Tampa Illustrate the Difference Between the Chapters of Bankruptcy
If you're one of many Americans who is overwhelmed by rising debt, late payments, and other financial issues, your head might be spinning as you try to survive these problems. Add in the fact that bankruptcy proceedings, which might be a potential solution for your money woes, can often be confusing and complex, and it can be easy to feel lost and hopeless. Luckily, the bankruptcy lawyers in Tampa from Yesner & Boss, P.L. are here to help.
There are four types of bankruptcy provided by law. As your bankruptcy lawyers in Tampa, we can explain these to you in greater detail, but here is some basic information:
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Chapter 7 bankruptcy – known as a "liquidation" bankruptcy, this chapter requires you to sell certain non-exempt property in order to raise money to pay your debts. However, as your bankruptcy lawyers in Tampa will tell you, you are able to keep to property that is exempt under Florida and federal law, and many people who file for Chapter 7 bankruptcy do not own any non-exempt property. Therefore, they are able to erase their unsecured debt without losing any property.
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Chapter 11 bankruptcy – this chapter is typically used by businesses facing financial issues that need to reorganize their finances. Rarely, filers with very high income and very high debt can file for this type of bankruptcy.
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Chapter 12 bankruptcy – Chapter 12 bankruptcies are reserved for individuals whose debt has arisen due to the operation of a family farm.
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Chapter 13 bankruptcy – in this form of bankruptcy, you must make enough of a reliable income in order to adhere to a repayment plan that will be agreed upon as part of the proceedings. This payment plan will require you to repay all or parts of your debt over 3-5 years, depending on your income, expenses, and other factors.
To set up a free consultation with the bankruptcy lawyers in Tampa at Yesner & Boss, P.L. and learn more about the options available to you, contact us today.
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