Question 1

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

Accepted Answer

Chapter 7 is a liquidation bankruptcy that discharges most debts relatively quickly. Chapter 13 is a reorganization plan that allows you to repay some or all debts over 3–5 years while keeping your assets.

Question 2

Will bankruptcy ruin my credit?

Accepted Answer

Bankruptcy does impact your credit. However, many people find that after bankruptcy, they are able to rebuild credit over time. The impact of a bankruptcy on credit should be weighed against the relief it can provide.

Question 3

Will I lose my house if I file bankruptcy?

Accepted Answer

Not necessarily. Florida has a generous homestead exemption. Whether you can keep your home depends on your equity, the type of bankruptcy filed, and whether you are current on mortgage payments.

Question 4

Will I lose my car in bankruptcy?

Accepted Answer

Florida allows an exemption for a motor vehicle up to a certain value. Whether you keep your car depends on the equity and the type of bankruptcy filed.

Question 5

What debts can be discharged in bankruptcy?

Accepted Answer

Common dischargeable debts include credit card debt, medical bills, personal loans, and certain other unsecured debts. Student loans, child support, alimony, and most tax debts are generally not dischargeable.

Question 6

Can bankruptcy stop foreclosure?

Accepted Answer

Filing for bankruptcy triggers an automatic stay, which temporarily halts foreclosure proceedings. Chapter 13 can allow you to catch up on missed mortgage payments over time.

Question 7

How long does bankruptcy stay on my credit report?

Accepted Answer

Chapter 7 bankruptcy remains on your credit report for 10 years. Chapter 13 remains for 7 years.

Question 8

Do I qualify for Chapter 7 bankruptcy?

Accepted Answer

To qualify for Chapter 7, you must pass the means test, which compares your income to the Florida median. An attorney can help you determine whether you qualify.

Bankruptcy Frequently Asked Questions

Common Questions About Florida Bankruptcy

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