Fort Lauderdale Bankruptcy Blog

For many years, bankruptcy was one of those subjects that most people simply did not want to think about, much less talk about openly. Fortunately, that is changing, and this change couldn't come a moment too soon. As public opinion about bankruptcy changes, more people recognize that living in the modern world is always a dangerous proposition, and bankruptcy is one of the great gifts that the law gives us when unexpected setbacks occur.

These days, one of the most common reasons to consider bankruptcy is overwhelming medical debt. It is no longer a controversial opinion that the cost of medical care in America is astronomical. Many of us live in fear that that, no matter how well things are going at any moment, an unexpected illness or serious accident can bury us in debt in an instant. Many people even avoid treatment that they desperately need because they don't know how they'll ever pay for it.

Although unemployment remains low and wages continue to rise, the number of people in Florida who are filing for bankruptcy is on the uptick. According to numbers reported by a major Florida media outlet, bankruptcy filings have increased by 11 percent across the state. In the vicinity of Tampa and Central Florida, the increase is closer to 12 percent.

The good news is that numbers remain far below those that the state experienced during the Great Recession at the end of the last decade and, for that matter, throughout the 2000s.

South Florida residents would be aware that the two most common methods of filing for bankruptcy are under Chapter 7 and Chapter 13 of the United States Bankruptcy Code. While both of these methods are established debt relief methods, there are several differences that all bankruptcy filers should know.

The first difference between the two is that Chapter 7 necessitates the liquidation of assets while Chapter 13 does not. Instead, in Chapter 13 proceedings, the debts are consolidated and the debtor is expected to make monthly payments to repay debts.

If you're considering divorce, you need to think about what kind of divorce you want to go through. There are two primary forms of divorce that people tend to choose, either Chapter 7 bankruptcy or Chapter 13. Chapter 7 is also known as liquidation bankruptcy, while Chapter 13 is a repayment plan.

Both types of bankruptcy have their benefits. For example, Chapter 7 bankruptcy can eliminate unsecured debts completely without having to make payments. You may lose some of your unexempt assets, but you'll still keep exempt assets.