Chapter 7 — Liquidation
Chapter 7 can discharge most unsecured consumer debts, typically within a few months. Eligibility depends on income (the means test) and asset exemptions under Florida law.
Educational
Bankruptcy information.
A plain-language overview of Chapter 7, Chapter 13, and how each compares to debt-defense litigation.
Chapter 13 — Reorganization
Chapter 13 restructures debt into a 3–5 year repayment plan. It's commonly used to stop foreclosure, catch up on arrears, or protect non-exempt assets.
Bankruptcy vs. debt defense
Litigation defense focuses on a single lawsuit — and may resolve it on terms far better than the creditor wants, without bankruptcy on your record. Bankruptcy is a system-wide solution that can address many debts at once but has long-term credit and asset implications.
- Effects on credit reports
- Asset and exemption considerations
- The automatic stay and how it pauses collection
- Discharge versus dismissal
Disclaimer: Information provided is for educational purposes only and does not constitute legal advice.
Not sure which path is right?
A free consultation with Attorney Ley can help you weigh both options before you decide.