What are the different types of bankruptcy?

In Florida, different types of bankruptcy are available depending on an individual’s or company’s financial situation. The most common form of bankruptcy is Chapter 7, which involves liquidating assets to repay creditors. Under this type of bankruptcy, non-exempt assets are sold to pay off debtors. This is usually the best option for individuals who have few assets and who are unable to pay off their debts. Chapter 11 bankruptcy is available for individuals and businesses who have a substantial amount of debt but still have the potential to generate profits. In this form of bankruptcy, the debtor and creditors create a reorganization plan to restructure the debt and repay creditors over time. Chapter 13 bankruptcy is designed for individuals who have a steady income but who are struggling to make payments due to debt. In this form of bankruptcy, the debtor is able to keep their assets and create a repayment plan to pay off their debts over a three to five year period. Finally, Chapter 12 bankruptcy is specifically for family farmers and fishermen. This form of bankruptcy is very similar to Chapter 13, but it has special provisions to help indebted farmers and fishermen continue their operations while paying off their debts. These are the four main types of bankruptcy available in Florida. Depending on an individual or business’s specific financial situation, they may be able to use one of these forms of bankruptcy to help them pay off their debts.

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What are the different types of bankruptcy?

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