Jacksonville Bankruptcy Attorney Outlines 5 Most Common Types of Bankruptcy
Even with all the Jacksonville, Florida bankruptcy filings in recent years, many individuals are still unclear about the different types of bankruptcy options available. One Jacksonville bankruptcy attorney recently outlined the five most common types of bankruptcy for Florida residents and businesses:Chapter 7: Also known as “straight bankruptcy” or “liquidation,” Chapter 7 bankruptcy allows individuals or businesses to surrender non-exempt assets to discharge their debts. To qualify, you must pass a “means test” – or your income must also be less than the median income in Florida, depending on the number of people and wage earners in your household.
Chapter 9: Chapter 9 bankruptcy allows for municipalities to reorganize debt, and operates the same as Chapter 11 bankruptcy.
Chapter 11: Frequently referred to as “reorganization,” Chapter 11 bankruptcy is available to individuals but because it is more complicated and expensive, it is mostly used by businesses to restructure debt while retaining certain assets.
Chapter 12: Chapter 12 bankruptcy allows family farmers and fishermen to reorganize their debt, and operates very much like Chapter 13 bankruptcy.
Chapter 13: Also known as “reorganization,” Chapter 13 bankruptcy is most often used by individuals who do not pass the “means test” for Chapter 7 bankruptcy. It allows individuals to restructure their debt, usually paying off a percentage or all of their debt over three to five years.
If you are considering filing bankruptcy in Florida, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
