' Liquidation and Reorganization - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Liquidation, Reorganization; What’s the Real Difference? II

Personal bankruptcy is the topic of this blog and differences between Chapter 7 and Chapter 13 filings the focus of this series. Our last post gave a little more explanation about what liquidation means in the Chapter 7 process. This post will focus on Chapter 13 — the reorganization bankruptcy.

Chapter 13 is called the reorganization bankruptcy process not because it just “shifts” debt around. The process involves the consideration of all income and liabilities to create a payment plan that works for the individual. Essentially, the debt is reorganized from unmanageable to manageable.

A major difference between Chapter 7 and Chapter 13 is the means test requirement for Chapter 7. While this test is easier to meet than people might think, it does exclude some. Chapter 13 is a way for those who earn more income to restructure their debt.

Ineligibility for Chapter 7 is certainly not the only reason to file for Chapter 13. Individual often voluntarily choose this option over the other. If there are co-signers on loans, this process can protect them. By filing for Chapter 13, you can put a stay on the accrual of tax interest charges and penalties. Other reasons may include time requirements for filing a second bankruptcy, default on a mortgage for a home they want to stay in, to remove certain liens on their property and a plethora of other reasons.

Understanding which type of bankruptcy to choose requires more advice and consideration than just two blog posts can offer, which is why it is important to consult an experienced bankruptcy attorney prior to making a decision.

Source:Reporter, “Understanding how bankruptcy works,” Jan. 16, 2013

If you want to learn more about the bankruptcy process in Florida, our law firm has extensive experience in helping individuals and families get the fresh start that they need.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
Read More

Will Declaring Bankruptcy Affect My Spouse?

Are you considering declaring bankruptcy? Are you married? If so, you may be wondering how it will affect your spouse....
Read More

Will Filing Bankruptcy Stop Foreclosure?

Many people facing foreclosure wonder if filing for bankruptcy will help them avoid the loss of their homes. While filing...
Read More

What Causes Someone to File Bankruptcy?

People file for bankruptcy for a variety of reasons. It’s an important decision to make and one that should not...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions