I. What is Chapter 7 bankruptcy?

Chapter 7 the idea behind chapter 7 filing is the debtor is trying to get rid of all their debt. It is ideally designed for individuals or married couples to eliminate most, if not all, of their debts. These debts include but are not limited too credit card debt, judgments, mortgages, unpaid medical bills along with other accrued debts.

Stop the harassing calls from the collection agencies. However one has to qualify for the chapter 7 filing by Florida Law they have to pass the MEAN test.The MEAN test “AKA” “median income and means test” is actually at the calculation of your income in accordance with the bankruptcy law to confirm eligibility.

Once the chapter 7 petition is filed it can take anywhere from 3-9 months for your case to be completed. However the creditors harassing calls will stop immediately.

II. What is Chapter 13 bankruptcy?

Chapter 13 the idea behind a chapter 13 filing is the debtor will received a approved payment plan with the trustee to see how much is affordable to pay back on a month too month basis. These plans are usually designed to have a 3-5 year term.

One of the advantages of a filing a Chapter 13 is the ability to remove or strip a second mortgage from your homestead property or primary home if the law permits. Therefore filing a Chapter 13 can possibly allow you to save your home from foreclosure.
Filing a Chapter 13 case has major difference with the payment plan structure not included in the chapter 7 filing, as mentioned before usually a 3-5 year term.

In addition, the Court allows you to make a payment plan with your creditors with the courts approval and oversight by the appointed trustee. The payments are decided based on how much our income is and what you can afford on a monthly basis.
Once you make all the monthly payments to the Court in your court appointed plan the amount remaining has been discharged or forgiven.