Bankruptcy: Is a Federal Court process that affords individuals the opportunity to start over when they have incurred significant credit problems. Debts may be eliminated or a repayment plan may be accomplished under the supervision of the Bankruptcy Court. We act as a debt relief agency. We help people file for relief under the United States Bankruptcy Code.

 

Is a Federal Court process that affords individuals the opportunity to start over when they have incurred significant credit problems. Debts may be eliminated or a repayment plan may be accomplished under the supervision of the Bankruptcy Court. We act as a debt relief agency. We help people file for relief under the United States Bankruptcy Code.

Our law firm is a “debt relief agency.” We counsel clients who do not have the ability to pay their existing debts. We may be able to advise you to seek relief under Chapter 7 of the United States Bankruptcy Code, called a “liquidation bankruptcy,” or relief under Chapter 13 of the Bankruptcy Code, whereby a Debtor with regular income repays a portion of his debts over a period of time. You must truthfully list all of your assets and all of your debts.

When a Petition for Bankruptcy is filed, creditors are normally forbidden, by the entry of an “Order of Automatic Stay,” from taking any further collection activities, such as phone calls, demand letters, or lawsuits against the Debtor.

Florida law states that certain assets are exempt from attachment by a person’s creditors.
In a Chapter 7 case, the Debtor keeps his “exempt” assets and surrenders his “nonexempt” assets to the Bankruptcy Trustee (or he repurchases the “nonexempt” assets from the Trustee over 12 months). After selling the “nonexempt” assets, the Trustee divides the proceeds among the Debtor’s creditors. The Debtor receives an Order of Discharge which releases the Debtor from personal liability on most of his debts.

In a Chapter 13 case, the Debtor files a “Chapter 13 Plan” which states that the Debtor’s future income will be used to pay a portion of the Debtor’s debts by making monthly payments to the Bankruptcy Trustee over a period of time (from 36 to 60 months). The Bankruptcy Judge must approve the repayment plan. When the last payment is made, an Order of Discharge is entered which releases the Debtor from the balance of the liability owed. Family farmers and commercial fishermen can file similar repayment plans under Chapter 12 of the Code.

Chapter 13 may help persons who: (a) have certain valuable “nonexempt” assets that they do not wish to relinquish to the Bankruptcy Trustee, (b) seek to cure arrearages in their mortgage payments or automobile loan payments, or (c) owe unpaid taxes. A Chapter 13 Plan may also remove a second mortgage on your home in certain, specific instances.

The decision to file a Petition for Bankruptcy, and under which chapter of the Bankruptcy Code, depends upon your particular circumstances. It is an extremely important decision which may require expert advice from a bankruptcy attorney. There are certain requirements which must be followed in order for you to obtain the relief that you seek. Our law firm can advise you whether bankruptcy is an appropriate option for you.