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Filing for Chapter 7 and Chapter 13 in Okaloosa County

Which bankruptcy chapter is right for you?

To many people, "bankruptcy" is a scary word. At Richard S. Johnson and Associates, P.A., we're here to debunk the erroneous bankruptcy myths and guide you to a better financial future. If you are struggling to get out of debt, Chapter 7 bankruptcy can allow you to discharge your debt and make a fresh start. We will administer the "means test" to determine if you qualify for Chapter 7. If your income exceeds the threshold, we can explore Chapter 13.

Filing for Chapter 7 Bankruptcy

Chapter 7 bankruptcy discharges most of an individual's debt, such as credit card balances and other bills. Although many people believe that filing for Chapter 7 will wipe out all of their debt, only loans and debts that are considered "dischargeable" can be erased.

What is dischargeable debt?

A Okaloosa County bankruptcy lawyer can advise you on which of your debts will be discharged by filing Chapter 7 and which debts will remain. Typically, the following debts are dischargeable:

  • Personal loans
  • Credit cards
  • Medical bills
  • Repossession deficiencies
  • Auto accident claims
  • Judgments
  • Business debts
  • Leases
  • Guaranties
  • Certain tax debts

Should you reaffirm your debt?

If you are filing for Chapter 7 bankruptcy, you will need to decide whether to reaffirm your secured debts. Typically, these include your home mortgage and car loan. Many people believe they must sign a reaffirmation agreement in order to keep their home and vehicle. However, this is not always the case. At Richard S. Johnson and Associates, P.A., we can analyze your individual circumstances and advise you on whether or not to reaffirm your debt through Chapter 7 bankruptcy.

Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to set up an affordable plan for repaying a portion of your debt in a three- or five-year time period. Following three or five years of regular, on-time payments, your remaining dischargeable debt will be forgiven. Many people file for Chapter 13 when they are facing impending consequences of delinquent payments, such as foreclosure.

To learn more about how our Okaloosa County bankruptcy attorney can help you, contact us online or call us toll free for a free initial consultation .

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