Palm Beach County Bankruptcy Lawyer

As you consider the many possible advantages and disadvantages of seeking an attorney for Bankruptcy Protection at this time, consider the following:

• Bad things [divorce, illness, unemployment, reduced work hours, auto accidents, etc.] happen to good people who do not want to get into debt or use credit cards;
• Obtaining Bankruptcy Relief with an attorney enables a debtor to have a “fresh start”;
• For many people, financial management means making sure to pay credit card payments on time, avoiding late fees, transferring balances from a higher interest rate card to a lower one, as opposed using funds for improvements to life (such as being able to afford medications or medical treatment or having money for retirement, college, or a more reliable vehicle); and
• Seeking bankruptcy relief should be very carefully considered, because if there were to be another catastrophic event causing financial distress, a debtor must wait years before again seeking bankruptcy protection.

How Does Bankruptcy Work?

Bankruptcy is a legal process that offers protection and relief to individuals or businesses that can’t meet their financial obligations. It also provides some protection for creditors. The process begins by deciding which type of bankruptcy is appropriate and filing the proper papers.

Federal bankruptcy law is divided into “chapters,” with several forms of debt relief available to individuals.

• Chapter 7 proceedings (often referred to as “Liquidation”) involve having a Court-appointed Trustee take non-exempt property (which is not protected from creditors), selling the property, and using whatever proceeds result to pay creditors. Many properties are exempt (excluded from the process and not subject to creditors’ claims), and as a result the filing of a Chapter 7 may result in little, if any, of the debtor’s property being administered.
• Chapter 13 (referred to as Consumers Reorganization) involves the borrower creating a proposed repayment plan that allows a portion of the debt to be paid in installments from the borrower’s future income.
• Chapter 11 of the Federal Bankruptcy Code is most commonly used by corporations. An individual who operates a business may use this procedure. However, Chapter 11 proceedings are very complex and very expensive.  A less complex method is a Subchapter V which is similar to a Chapter 7.
• Chapter 12 of the Bankruptcy Code applies only to individuals who are considered Family Farmers or Fishermen.

Most individuals typically file under Chapter 7 and Chapter 13.

What to Expect When Filing Bankruptcy in Florida

Once the bankruptcy proceeding is complete, the debtor is no longer liable to make payment of their debt once the Court enters an Order of Discharge. This means the court has discharged the borrower from any legal obligation to pay the debts. The borrower can then start over with a clean financial slate, although the bankruptcy record remains on the borrower’s credit report for 7 years for a Chapter 13 and 10 years for a Chapter 7.

The rule of thumb is that someone receiving bankruptcy relief may obtain a car loan almost right away [though not necessarily at a good interest rate], would receive pre-approved credit card offers, and could obtain a mortgage after 18-24 months. That is based, amongst other things, on the fact that very few people who obtain bankruptcy relief do so a second time, and if they do, they must wait years before filing again.  For example, the time between Chapter 7 filings to get a discharge is 8 years.. Also, potential new creditors do not have to worry about old creditors garnishing wages or bank accounts, which would prevent a debtor from paying the new ones.

Real Debt Relief is Possible

For many people, bankruptcy is the best, or sometimes only, solution for extreme financial hardship. However, it should be used sparingly, since it always has long-lasting consequences. Be sure to consult a qualified legal representative before resorting to bankruptcy as a means of solving your economic troubles. If you’re ready to talk to an experienced Florida bankruptcy attorney, contact our firm today to discuss your options.

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