Are you faced with large amounts of debt that seem to be growing rather than shrinking? Finding debt relief may be easier than you think. In fact, it is possible that declaring a bankruptcy could be the wisest decision you can make at this point in your life.
Personal Law: Personal Bankruptcy - Chapter(s) 7 and 13
Types of Personal Bankruptcy
Individuals going through personal bankruptcy have two options they can use to obtain relief from insurmountable piles of debt. These strategies include a Chapter 7 bankruptcy and a Chapter 13 bankruptcy.
What is a Chapter 7 Bankruptcy?
A Chapter 7 bankruptcy is one of the best known strategies for getting out of debt. It is used by individuals whose expenses greatly surpass their income and assets. The option to declare a Chapter 7 bankruptcy is available to people who don’t have a lot of assets but who have debts that are extremely high.
It’s important to understand that only some of your debts are eligible for discharge. A bankruptcy judge makes this determination and oversees your case.
You must sell any of your existing, non-exempt assets to cover the remaining debts. Once you have given the proceeds to your creditors, the court forgives the debts that still exist.
What is a Chapter 13 Bankruptcy?
Individuals looking to declare bankruptcy must choose to do so with a Chapter 13 bankruptcy if they have too many assets to qualify for a Chapter 7 bankruptcy. A bankruptcy judge creates a repayment plan that you must follow until your debts are paid in full. Typically, this repayment plan has a start and a finish date, lasting between three to five years in duration.
With a Chapter 13 bankruptcy, you do not need to sell your most valuable personal assets. As a result, the damage to your credit is minimized. It is important to understand that you must be able to make the payments as determined by the court in order to avoid selling your car, home, and other personal possessions.
If you would like to learn more about personal bankruptcy, Chapter 7 bankruptcy, or Chapter 13 bankruptcy, please contact Mann Law.
How Our Personal Bankruptcy Attorneys Can Help
Finding professional representation to guide you through the bankruptcy process is important. Our bankruptcy attorneys can assist you with each of the following aspects:
– Evaluate your financial situation
– Explain the bankruptcy process as it exists in Florida
– Help protect your home ownership
– Assist you in gathering information needed for the Florida Means Test to determine which bankruptcy plan you can use
– Guide you through each phase of the bankruptcy process
– Assist you in obtaining a reasonable repayment plan
– Explain each of your options, including modifying the repayment plan if your income changes
Filing for personal bankruptcy is a serious step, and it does have financial consequences. Unfortunately, if you can’t pay off your personal debts, you may have no other workable solution except to declare a bankruptcy. When this happens, it’s important to have an attorney on your side to guide you through this complicated process. If you would like to learn more about personal bankruptcy, Chapter 7 bankruptcy, or Chapter 13 bankruptcy, please contact Mann Law.