PLEASE NOTE: To protect your safety in response to the threats of COVID-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to discuss your options.


  1. Home
  2.  » 
  3. Bankruptcy Law
  4.  » 
  5. Chapter 7 Bankruptcy
  6.  » Chapter 7 v. Chapter 13

Know The Difference Between Chapter 7 And Chapter 13

Once you have consulted with an attorney, learned about and considered your alternatives, and decided that bankruptcy is for you, you now have the choice of filing Chapter 7 or Chapter 13.

How To Choose Between Chapter 7 And Chapter 13? We’ll Help You Decide.

The first consideration in choosing between Chapter 7 and Chapter 13 bankruptcy is whether you have secured or unsecured debt. Secured debt is debt secured by collateral, in the way that an auto loan is secured by the vehicle the loan’s proceeds are used to purchase, or the mortgage on your home. Unsecured debt is any debt that is not secured by collateral. Filing Chapter 7 bankruptcy ensures that the majority of your assets will be liquidated to pay off your secured creditors. Under Florida law, you are entitled to only a $1000 personal property exemption if you keep your residence. The personal property exemption increases an additional $400 if you don’t own a home in Florida.

Filing for Chapter 13 bankruptcy is a better option if you have consistent, dependable income, or if your income is too high to file for Chapter 7 bankruptcy. Chapter 13 allows you to restructure your debt, including back taxes, so that you may keep your home and possessions, paying them off in a structured manner over a period of time. The debt does not have to be paid in full.

There Are Some Special Considerations
If you have a second mortgage with no equity, we may be able to strip the lien by reclassifying the debt as unsecured debt. If you are upside-down on your car loan within the 910 days prior to filing Chapter 13 bankruptcy, we may be able to cram down the loan.

It is important to keep in mind that every situation is different. You cannot rely on general information. It is necessary to speak to an experienced, skilled bankruptcy attorney who can guide you in the right direction.

Office In Spring Hill, Florida, In The Center Of Hernando County

To schedule a initial consultation, call us toll free at 888-326-9553, or contact our Hernando County bankruptcy lawyers online. Our law office is located in Spring Hill, Florida, in the center of Hernando County.