Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies can generally be described as “liquidations” or “reorganizations.”

Chapter 7 bankruptcy is the liquidation variety: If you own property that isn’t exempt under your state’s laws, it may be taken and sold (“liquidated”) to pay back some of your debt. Chapter 13 bankruptcy is the most common type of “reorganization” bankruptcy for consumers: You get to keep all of your property, but you must make monthly payments over three to five years to repay all or some of your debt.

Both kinds of bankruptcy have numerous rules — and exceptions to those rules — about what kinds of debts are covered, who can file, and what property you can and cannot keep.

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The latest changes to the bankruptcy law make it a bit harder for some to file bankruptcy. And a few filers with higher incomes won’t be allowed to use Chapter 7, but will instead have to repay some of their debt under Chapter 13. All debtors will have to get credit counseling before they can file a bankruptcy case. And, because the law imposes new requirements on lawyers, it may be tougher to find a bankruptcy attorney.

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For more information please visit: http://www.floridalawattorney.com/