Chapter 7

A Chapter 7 proceeding is available to most individuals, partnerships, and corporations. Although Chapter 7 is referred to as a "liquidation", in most cases you can retain the majority of your assets. Certain assets are exempt - or protected - under Florida law, such as your homestead, up to $1,000 of equity in a motor vehicle, certain health aids, pre-paid college funds and retirement funds. For individuals filing Chapter 7, most unsecured debts, including credit cards, medical debt and some tax obligations, are discharged. Other debts, including child support and alimony, recent tax obligations and student loans, generally cannot be discharged. There are multiple Chapter 7 panel trustees in Jacksonville and we work with all of them everyday.

Chapter 11

A Chapter 11 is available to individuals and businesses in order to reorganize their debt and provide an opportunity to pay all or a portion of your debts over a longer time period, sell a business or property, or eliminate burdensome leases, all while obtaining protection from creditors. Chapter 11 can also provide a stay of all pending litigation while disputes can be resolved. Assets can be valued at their current value which can reduce the amount that is owed.

Chapter 13

The benefits of a Chapter 13 include the ability to reinstate a home mortgage that is in default and stop IRS collection efforts while payments are being made. You will have the ability to retain non-exempt real estate and personal assets, and a broader form of discharge. It requires that the debtor, with our help, file a plan to provide payments to creditors over a period of three to five years. While you are making payments under the plan, creditors are prohibited from starting or maintaining collection efforts against you.