What kind of debt relief is available to married couples filing for bankruptcy?

Married couples filing for bankruptcy in Florida are allowed two main kinds of debt relief. The first type of relief is known as a Chapter 7 bankruptcy. Under Chapter 7, a married couple’s debts are erased and the couple is no longer responsible for repaying them. This is known as a “fresh start.” However, a couple must meet certain requirements to qualify for Chapter 7 bankruptcy, such as having a low level of income and not having certain kinds of debt. The second type of debt relief available to married couples filing for bankruptcy in Florida is known as a Chapter 13 bankruptcy. Under this option, married couples can establish a repayment plan. This plan pays back creditors over a set period of time, usually three to five years. Although creditors may still collect some of what is owed to them, the amount that is actually paid back is generally much less than what was originally owed. Repayment plans must be approved by the court and adhere to certain guidelines. In both Chapter 7 and Chapter 13 cases, a married couple’s assets are liquidated and used to pay off the couple’s debt. As such, it is important that married couples consult with an experienced bankruptcy lawyer before filing for bankruptcy in Florida in order to understand their rights and obligations fully.

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What kind of debt relief is available to married couples filing for bankruptcy?

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