The Two Main Types of Bankruptcy for the Average Person in Pinellas County

Pinellas County has been hard hit in the last several years with the loss of jobs, stalled pay for teachers, firefighters, policemen and mortgage foreclosure crisis. The two main types of bankruptcies are chapter 7 bankruptcy and chapter 13 bankruptcy.

Chapter 7 bankruptcy – This is known as a “liquidation” bankruptcy but that’s a bit of a misnomer. Many chapter 7 filers don’t have assets that become part of a bankruptcy estate. As a result, you may be able to keep your2 Types of Bankruptcy Pinellas County house, personal effects and a vehicle. Each situation is individual and you should consult and experienced bankruptcy attorney to answer your questions about keeping your property in bankruptcy.

It usually takes about three to four months to prepare a bankruptcy petition and have an appearance at a 341 hearing and get your fresh start.

–  Chapter 13 bankruptcy – If you want to pay off part of your debt over a period of time, like three to five years so that you can keep your house or other valuable assets, a chapter 13 bankruptcy might be right for you. If you live in St. Petersburg or Clearwater and are falling behind in your mortgage payment, this type of bankruptcy may be the way to go.

It’s also for people who don’t qualify for chapter 7 because they have too many assets or want or need to keep property like second rental homes, multiple vehicles, or boats.

What do I get to keep after bankruptcy?

In Florida, we have exemptions that will determine what you can keep. An experienced bankruptcy attorney in St. Petersburg, Pinellas County can help you to determine what assets you get to keep in your bankruptcy. Don’t let that scare you. You might be pleasantly surprised to learn what you are able to keep and still your fresh financial start by filing a chapter 7 or 13 bankruptcy.

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