Bankruptcy - An Overview
What does filing for bankruptcy mean? What does filing for bankruptcy in Florida entail? What is the difference between a Chapter 7, Chapter 11, and Chapter 13?
Because these are some of the most common questions Debtors have when they contemplate filing for Bankruptcy, we have provided a summary of information to give Debtors a general idea of what Bankruptcy means and what the process generally entails.
A bankruptcy is a legal proceeding which allows you to get out of debt and get a fresh start. The different types of bankruptcies include Chapter 7, or liquidation, Chapter 11, or reorganization, and Chapter 13. The bankruptcy process is governed by an act of Congress known as the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and local rules of bankruptcy.
The bankruptcy process also utilizes state laws to determine exemptions which vary from state to state and rights of parties within the proceeding. Bankruptcy does not discharge most mortgages or liens. If the Debtor decides to keep his/her house or automobile, then payments must continue to be made. If the Debtor is facing a foreclosure or has had an automobile repossessed, then the Debtor may use a Chapter 13 to make payments over time to cure the past due payments and bring the loan current.