Frequently Asked Questions
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
Chapter 7 bankruptcy liquidates non-exempt assets to discharge most unsecured debts quickly, typically within a few months. Chapter 13 involves a 3-5 year repayment plan and allows you to keep your assets while catching up on secured debts like a mortgage.
Will filing for bankruptcy stop foreclosure on my home?
Yes. As soon as you file for bankruptcy, an automatic stay goes into effect that immediately halts foreclosure proceedings, giving you time to explore options to save your home or plan your next steps.
Can bankruptcy eliminate all types of debt?
No. Most credit card debt, medical bills, and personal loans can be discharged, but certain obligations such as most student loans, recent tax debt, child support, and alimony generally cannot be eliminated through bankruptcy.
How long does the bankruptcy process take?
A Chapter 7 case is typically resolved in 3-6 months. A Chapter 13 case involves a repayment plan lasting 3-5 years before the remaining eligible debts are discharged.
Will I lose my car if I file for bankruptcy?
In most cases, no. Florida’s exemption laws allow you to protect a certain amount of equity in your vehicle, and as long as you stay current on secured payments, you can typically keep your car.
How does bankruptcy affect my credit score?
Bankruptcy will initially lower your credit score and remain on your credit report for 7-10 years, but many clients begin rebuilding their credit within a year or two of discharge by managing new credit responsibly.
Can bankruptcy stop wage garnishment?
Yes. Filing for bankruptcy triggers an automatic stay that stops most wage garnishments immediately, providing relief while your case is resolved.
Do I need an attorney to file for bankruptcy?
While it is legally possible to file without an attorney, bankruptcy law is complex and mistakes can be costly. An experienced bankruptcy attorney helps ensure your case is filed correctly and that you protect as much of your property as possible.