Are you drowning in debt? Do you keep receiving creditors calls? Don’t wait, call us for a consultation.
If you are in debt and you notice your income is not enough to pay you might need to go through bankruptcy. Bankruptcy is a legal process through which debtors seek for relief from some or all debts. Bankruptcy is done through the Federal Bankruptcy Court and ordered by a judge. An evaluation of your debts versus your income is done to determine your eligibility. Many think that when you file for bankruptcy you automatically lose everything you own. This is not true, there are some exemptions that will protect some of your assets. There are federal exemptions and State exemptions. Florida follows its own exemptions but it has a very generous exemption that protects your house based on Homestead. Of course, some requirements have to be met such as the property must be no larger than half an acre in a municipality or 160 acres elsewhere, but it has no limit in regards to the value protected. In regards to personal property you can protect up to $1,000, including furniture, art, and electronics; or you can claim up to $4,000 if not using homestead exemption. The vehicle can be protected up to $1,000; double if married and filing jointly. The wages of the head of family will be fully exempt up to $750 per week, paid and unpaid during the last 6 months. Some debts will not be forgiven. In addition, you don’t necessarily have to get rid of everything since there are different types of chapters for different types of situations. A thorough evaluation of your case can be done to determine what chapter is convenient for you.
You can contact our office for a consultation at (813)908-1313.
In chapter 7 you liquidate all your assets and you get most of your debts forgiven. A trustee will be appointed by the court and he will oversee the liquidation to pay the creditors. If anything needs to be negotiated it will be done with the trustee. The court will decide if you qualify through a means test. The means test is a comparison of your income with the state average income while evaluating your finances. When your income is lower you may qualify for Chapter 7.
Chapter 13 will help you reorganize your debt, which means you will pay your debts, although some can be eliminated. A monthly payment plan will be approved by the court in which all your secure debts are paid and some of your unsecured in a period of 3 to 5 years. An evaluation of your income versus the debts you have to pay will be done to determine the monthly payment. The court will also establish a budget for you. Beware, you cannot miss a payment. The positive side of this chapter is that you will not lose any of your assets and it can help you protect a house that is in foreclosure by establishing a payment plan to bring it up to date.
Chapter 11 is for large reorganization of a business or corporation. A plan is made to determine how the business will continue operating while paying the debt. In this situation both the court and the creditors must approve of the plan.
This Chapter is designed for family farmers and fisherman. A repayment plan will be established and it allows you to keep your assets. In other words, you can continue your business and we can deal with your perishables before they are not good for the marke.
Contact us today, for a consultation at (813) 908-1313.