What is bankruptcy?
Bankruptcy is a process in which businesses or consumers can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. This is a consumer protection law that is different from most laws because it provides forgiveness rather than punishment. Bankruptcy is a powerful tool for dealing with out-of-control debt and yet it must be used correctly to be effective. Our bankruptcy lawyers stay up-to-date with current bankruptcy laws, and they can explain all of the advantages and disadvantages of filing bankruptcy.
Do I qualify for bankruptcy?
The majority of individuals who have limited resources to pay off overwhelming debt will qualify for some form of bankruptcy. In order to determine if you qualify for bankruptcy, you must first determine which type of bankruptcy you want to file for. A Chapter 7 filing requires a means test to determine if your income level and the value of your assets will qualify. With a Chapter 13 filing, you must have a steady income that can support a repayment plan.
What types of bankruptcy are available to individuals?
There are three types of bankruptcy available to individual debtors in the state of Florida. Chapter 7 bankruptcy, also known as liquidation, will discharge all of your debt after you have given the court all of your non-exempt assets for sale or liquidation. Chapter 12 bankruptcy allows farmers or fishermen in Florida to create a three-to-five-year repayment plan that will pay back the majority of their debt while allowing them to continue with their business activities. Under a Chapter 13 bankruptcy, you are allowed to keep all of your assets while you pay back debt during a three-to-five-year plan.
Can I file for bankruptcy on my own?
Yes, you can, but you are undertaking serious risks by doing so. Without a full understanding of bankruptcy law and the way it plays out in court, you may file the wrong type of bankruptcy or leave out pertinent information that could jeopardize your claim.
Will I lose my personal property if I file bankruptcy?
An attorney from our firm can explain the federal, state, and local exemptions that may allow you to keep a certain amount of personal property when you file for bankruptcy. These exemptions differ from state to state.
How long will bankruptcy remain on my credit report?
A bankruptcy can stay on your credit report for ten years.
What should I know about filing for Bankruptcy in Stuart, FL?
Regardless of whether you are filing for Chapter 7 or Chapter 13, you must participate in a mandatory credit counseling court before you file for bankruptcy. After this course is completed, you will need all of your income and expense information, including all of your debtors, to fill out the Petition, Schedules, and Statement of Financial Affairs. It is especially important to include all of your assets and liabilities, and our firm can help you with this process. Once the filing is complete, you will no longer experience creditor harassment and all pending lawsuits will cease.
How does bankruptcy affect credit?
One of the most widely circulated myths about bankruptcy is that bankruptcy destroys your credit record. While your credit rating will take a dip after you complete the bankruptcy process, you can immediately begin to improve your credit afterward without the worries of paying off debt. As part of filing for bankruptcy, you are required to attend a mandatory financial management class. The helpful tips that you learn from this class will be useful in rebuilding your credit report and establishing better spending habits.
To get more of your questions answered, please contact Crary Buchanan today!