Caroline Secor PA

Chapter 7 Bankruptcy Temple Terrace

Bankruptcy isn’t a one size fits all type of deal. Personal bankruptcy exists in two key forms under American law – Chapter 7 and Chapter 13. Each form of personal bankruptcy suits a different scenario and adheres to different guidelines and rules.

With a Chapter 7 bankruptcy, the filer has all their eligible debts cleared. Except for alimony, child support, student loans, taxes, and criminal judgments, most unsecured debts are eligible for Chapter 7 under bankruptcy law. In exchange for the clearance of debts, the filer must relinquish parts of their property. The relinquished property is sold and the proceeds go towards paying some of the debts. For secured debts (such as a mortgage secured by a house), the filer will be forced to either keep making payments on the debt or have the property securing the debt repossessed.

With a Chapter 13 bankruptcy, the filer receives a repayment plan that spans over a period between three and five years. In this arrangement, the filer will not have to give up any personal property so long as they stay on top of their repayment plan. The Chapter 13 repayment plan restructures or reorganizes debts in a way that makes it easier for them to be paid back. For some secured debts, filers may receive an opportunity to catch up with past due payment as part of the repayment plan and then continue repaying debts.

The major difference between Chapter 7 and Chapter 13 has to do with their structures. Whereas a Chapter 7 bankruptcy wipes debts clean, a Chapter 13 sets up a repayment plan that requires a percentage of the filer’s debts be repaid. Other important differences include the treatment of secured debts and eligibility requirements.

Carolyn Secor


The federal government passed new bankruptcy reform legislation in October 2005. However, don't be discouraged! Most studies indicate that the new law affects less than 15% of individuals who could have filed previously. If you are feeling overwhelmed by your debts and considering filing bankruptcy, it is highly probable that you fall into the category of the 85 percent of people who are still eligible to file.




"Serving Pinellas, Pasco, and Hillsborough Counties."

Carolyn Secor, Attorney at Law
Bankruptcy Attorney Tampa Bay Florida
Florida Law Firm with Offices in
Clearwater (Main Office) Tampa St. Petersburg Port Richey
Phone:  1-727-254-1704

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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