Gregory & Clark, PLLC Articles What Kind of Debt is Included in a Chapter 7?

What Kind of Debt is Included in a Chapter 7?

By Gregory Clark  Feb. 23, 2011 1:17p

If this is your first time filing for bankruptcy, you probably have a lot of questions, namely, what kind of debt can be discharged in a Chapter 7 bankruptcy? Do you qualify for Chapter 7? What is the difference between a Chapter 7 and a Chapter 13?

The two main types of bankruptcy are Chapter 7 and Chapter 13. Chapter 7 bankruptcy is reserved for those debtors who do not have the disposable income to pay off their debts. Chapter 7 bankruptcy is frequently a choice for people who are out of work, whose work hours are insufficient to keep up with their monthly living expenses and people who are living way beyond their means.

For those individuals whose income is too high and who are ineligible for Chapter 7, they have no choice but to file a Chapter 13 bankruptcy. A Chapter 13 bankruptcy allows debtors to pay off a portion of their debt over 3 to 5 years. An Orlando bankruptcy attorney can help you determine which bankruptcy you qualify for.

Chapter 7 bankruptcy, otherwise known as the “liquidation” bankruptcy will not discharge all debts. It is basically for unsecured debts such as; medical bills, veterinarian bills, utility bills, credit card debt, personal loans and taxes (over 3 years old).

What Chapter 7 bankruptcy does not include is: child support, alimony or spousal support, student loans, recent taxes (less than 3 years old), court ordered fines and victim restitution.

Bankruptcy Lawyer in Orlando

If you would like to discuss bankruptcy in more detail, contact an Orlando bankruptcy attorney from Gregory & Clark, PLLC. We are well versed in all aspects of Florida bankruptcy laws. We can give you all the information you need in order to help you make an informed decision, whether or not bankruptcy is right for you.

Contact an Orlando bankruptcy lawyer from our firm today for a free consultation.

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