Florida Bankruptcy under Chapter 7 requirements
Chapter 7 laws liquidate debts without payment. Chapter 13
requires that debts are repaid, in whole or in part, over a term of
months. Because of these uniquely exclusive purposes, the impact of a Chapter 7 Florida bankruptcy is quite different
as compared to a Chapter 13 Florida bankruptcy. The term "straight bankruptcies" is old term which still survives today and is sometimes used to describe
cases filed under Chapter 7.
Most consumer debts are dischargeable. Routine discharges are available for mortgage deficiencies, car notes,
credit cards, accounts payable, and many others. Certain debts are not dischargeable, and in general, include
liabilities owed to government authorities (taxes, fines, penalties) and civil liability for debts imposed on
others without permission (child support, judgments for damages, DWI, DUI, theft, fraud, etc.).
Florida Bankruptcy Protection
The primary purpose of Chapter 7 laws is to discharge
debts and provide debtors a "fresh start." However, all people who file are not
entitled to a discharge of all debts. Limitations are imposed on who may file, and the particular debts that may be
discharged. Florida bankruptcy courts are charged with an affirmative duty to review compliance with all
applicable rules and statutes. Likewise, trustees and creditors may file objections and direct the courts
attention to noncompliance. Depending upon the classification for each debtor who files and classification of
debts included within the estate, the application of Chapter 7 laws
is unique for each person who files.
In practice, most individuals who file Florida bankruptcy under Chapter 7 do receive a discharge without surrendering significant assets.
Most often, this favorable result for debtors occurs after careful review and planning. If significant assets are subject to seizure, or discharge of
debts is questionable, debtors often choose reorganization or avoid filing altogether using one of the many
alternatives available today. Avoid all surprises.
Note: the particular chapter which may best serve debtors depends on many factors. Past due payments are
treated differently. Property may be subject to forfeiture. The period of court supervision of the estate lasts
from a few months, up to five years. The personal goals of each individual and their lawyer must receive primary consideration to
maximize results.
Florida Bankruptcy topics.
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