Many people who file for bankruptcy in Fort Pierce are unemployed. In fact, to qualify for Chapter 7 bankruptcy, you must have a monthly income under a certain amount. Being unemployed can provide a short window of opportunity to quickly wipe out debt before finding a new job. In contrast, to file for Chapter 13 bankruptcy, individuals need a steady income. Therefore, you usually can not file for Chapter 13 bankruptcy if you are unemployed.
If you aren’t familiar with the differences between the bankruptcy chapters, learning how to choose between Chapter 7 and 13 is an excellent place to start.
Chapter 7 Bankruptcy – also known as liquidation bankruptcy, Chapter 7 bankruptcy eliminates most of your general unsecured debts, such as credit card debt, medical and utility bills, and personal loans. When you file for Chapter 7 bankruptcy in Fort Pierce, you usually do not have to pay back these “dischargeable debts”. To qualify for Chapter 7 bankruptcy, you must meet certain income requirements. If you make too much money, you may have to file for Chapter 13 bankruptcy.
You can learn more about filing for Chapter 7 bankruptcy in Fort Pierce here.
Chapter 13 Bankruptcy – also known as reorganization bankruptcy, Chapter 13 bankruptcy is intended for individuals or businesses who make enough money each month that they can pay back at least a portion of their debts through a repayment plan. Even though most people who file for Chapter 13 make too much money to qualify for Chapter 7 bankruptcy, many individuals choose to file for Chapter 13 bankruptcy in Fort Pierce because it offers several benefits not available in Chapter 7. For example, when you file for Chapter 13 bankruptcy, you are able to keep all of your property, including nonexempt assets, but you will have to pay back a portion of your debt.