Rosal Law Office

Helping You Achieve Debt Relief

Bankruptcy-Debt Relief-Chapter 7 and Chapter 13

Chapter 7

 The majority of people seeking Debt Relief utilize Chapter 7.

Under Chapter 7, a person is allowed to keep exempt assets and wipe out most, if not all of their unsecured debt.  Examples of unsecured debt are  credit card, repossession and medical bills, as well as, certain income tax obligations.  In Florida, your exempt assets include but are not limited to your homestead,  and most of your personal property, as well as, your car.  All of the exemptions have certain prescribed limitations which need to be analyzed and discussed during your free Debt Relief consultation.

Chapter 13

The laws under this Chapter are very useful, for those seeking to keep their residence. If your homestead is worth less than your first mortgage, then under this Chapter your second and third mortgages may be eliminated. In addition, if you are behind on your mortgage payments and in a foreclosure, in most cases, the foreclosure can be stopped and your mortgage reinstated.

Under Chapter 13, an individualized plan is created based on the client’s income, which lasts between 36 and 60 months. The payments in the plan, usually include funds for secured assets and in some cases for a percentage of unsecured debts.

Each individual has a different financial situation which requires analysis during your free Debt Relief consultation