- Products & Services
- Knowledge Base
TAMPA, FL, April 27, 2015 /24-7PressRelease/ -- The Tampa bankruptcy attorneys at Clark & Washington wish to explain the fundamental differences between Chapter 7 and Chapter 13 bankruptcy. Filing for bankruptcy is not the end of the world, and individuals file for a multitude of reasons. The type of bankruptcy that an individual would select depends upon several factors, one of them being their eligibility. Whether or not you qualify for a particular brand of bankruptcy depends on your financial status.
Chapter 7 vs. Chapter 13
To become eligible for Chapter 7 bankruptcy, you must pass the means test. The means test measures an individual's monthly income for the previous six months and contrasts this amount with the average of other individuals within your state.
If you are above that average line, then you will not qualify to file for Chapter 7. Chapter 7 bankruptcy entails the liquidation of your assets in order to satisfy your debts. There are some types of property that are exempt from liquidation, but the exceptions are very limited.
To become eligible for Chapter 13 bankruptcy, you cannot be a business. Only individuals can file for Chapter 13. You can, however, be a business owner and file for Chapter 13. You also have to have enough income to repay your debts. Chapter 13 bankruptcy is very different from Chapter 7 in that it does not involve any liquidation of assets, but more of a reorganization.
Chapter 13 bankruptcy requires you to pay back your creditors via a payment plan that allows approximately two to five years to pay back your debts. This is a very attractive option, especially for those who do not want to sell off their possessions to satisfy their debts.
If you are considering filing Chapter 7 or Chapter 13 bankruptcy, you are going to need the assistance of a qualified Tampa bankruptcy attorney to help guide you through the process. For more information or to schedule a free consultation, visit www.cw13fl.com
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal Chapter 7 and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.cw13fl.com.
# # #