Any number of events may be responsible for an individual filing for personal bankruptcy; loss of employment, mismanagement of money, unexpected medical bills, or divorce. It is a serious decision that may affect your financial status, but it is also an acceptance of your present financial situation and declaration of your debts. Personal bankruptcy should be seen as a step towards mending your financial problems.
No matter what options you decide upon to get your finances under control, it is important to do so before your situation becomes worse. If you are even considering personal bankruptcy then you are already in trouble and need to get help. Personal bankruptcy may turn out to be your best recourse in giving you debt relief, and that is what it was created for.
It is a good idea to hire St. Petersburg bankruptcy lawyers who know how to navigate through the current federal and state laws. The personal bankruptcy process is a complicated one and there is a chance that you will lose property or other rights if you do not properly adhere to the bankruptcy laws. It is in your best interest to find St. Petersburg bankruptcy lawyers who want to meet with you individually, answer your questions, and take into account your personal situation. Your lawyer will have the knowledge and expertise to assist you with all the necessary paperwork and will give you the quality legal advice and representation you need to successfully file personal bankruptcy.
There are two types of personal bankruptcy: Chapter 7, which erases most of your debts, and Chapter 13, which creates a debt repayment plan. Your records and paperwork will be reviewed and your St. Petersburg bankruptcy lawyers will decide exactly what path is right for your situation. Once the decision of filing for personal bankruptcy is made, many of your worries will become a thing of the past.
Your creditors and collection agencies will be notified that you’ve taken the proper steps and the process of filing for personal bankruptcy has begun. Threatening and harassing calls from creditors will immediately stop once your St. Petersburg bankruptcy lawyers have filed your petition with the federal court. Filing for personal bankruptcy will provide you with peace of mind and will allow you to continue with your day-to-day life. It is the first step to a fresh start with your finances.
If you live are under tremendous financial pressure and unable to pay off your outstanding debts, then filing bankruptcy may be the only viable option that you have.
As an individual you have a choice of filing for bankruptcy under two chapters. An explanation of both the chapters – and how to choose the chapter more suitable for you – is given below.
You can file for bankruptcy under Chapter 7 only if you pass the “Means Test”.
This test involves calculating your gross income and assets and deducting your liabilities and your expenses during the past 6 months prior to you having filed for bankruptcy. These numbers are then compared with the average median income of a similar sized family in Texas.
If your net income is lower, then you qualify for filing under Chapter 7; otherwise, you may have to file under Chapter 13. Once you file under Chapter 7, the court will appoint a trustee, who will sell off your unprotected or non-exempt assets to pay off your creditors.
Your case can be discharged within 6 months if you file for bankruptcy under this Chapter. Since normally your home and cars will be exempt, you will be able to retain these assets.
If your home and car are at risk as a result of not being able to meet your obligations, then you can see why retaining a qualified bankruptcy attorney like Allmand and Lee to file Chapter 7 on your behalf is a wise choice.
Chapter 13 Explained
Unlike Chapter 7, filing under Chapter 13 will give you the chance to repay your outstanding debts over a longer period of time, usually between 3 to 5 years. You also have the chance to keep all your property.
As with Chapter 7, once your attorney files for bankruptcy under Chapter 13 on your behalf, your creditors will no longer be able to foreclose on your home or take your possessions. By law, they must also stop harassing you immediately.
Once you file under Chapter 13, you will need to submit a repayment plan to the court, detailing your plan to pay off your debts. Your bankruptcy attorney can even try to get a part of your loan discharged, so that you can pay off the rest.
If your plan is approved, the court will appoint a trustee, who will monitor your repayment schedule to ensure that you stick to it.
Chapter 13 or 7?
Usually (depending on the situation), individuals try to file for bankruptcy under Chapter 7 in order to get most of their outstanding debts discharged. The time taken to do this is also quite less as compared to filing under Chapter 13.
The problem is that with the new, stricter laws put into place after October 2005, you might find it difficult to file under Chapter 7 and might have to file under Chapter 13. Most of your assets may also be disposed of by the court trustee in order to satisfy your creditors.
This might not happen under Chapter 13.
Therefore, Chapter 13 allows you to stay in control as you chart out a repayment plan stretching between 3 to 5 years. If you are wary of losing many of your assets and do not mind a longer repayment plan, then you could ask your bankruptcy attorney if you can file under Chapter 13.
However, if you want your case to get discharged within a short time and are unable to come up with a long-term plan to raise money to pay off your creditors, then filing under Chapter 7 would be a better option.
So, compare both chapters with your bankruptcy attorney before deciding on which chapter is the better option.
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For those of you who call Florida their home, the recent economic catastrophes should be enough to prompt you to know more about the Florida Chapter 11 bankruptcy. People call this the reorganization plan because it allows the debtor to reorganize his payment schemes and keep his assets all the same. He can sell off certain assets to repay debts or perhaps just refinance them. Individuals and businesses can take advantage of this plan.
It really does happen to the best of people, this whole business of debts getting out of hand. When this happens, working with the creditors and the courts may be your best choice. It may not always be the first choice or even the most popular choice but 11 usually is the only choice. Filing for insolvency will buy you some time to plan and act plus, it also allows you to keep your assets such as your house.
When you want to file for insolvency, you must know of the many different chapters available. The Eleventh one will help you keep your business and allow it to stay open while you fix your finances. You may also know about chapter seven wherein your business gets liquidated to help pay for the debts.
The next step requires you to hire a lawyer. You may argue that this is expensive but you simply cannot do without a lawyer. Filing for insolvency gets messy and complicated; a lawyer will help you keep things in track. You need a lawyer to keep things in order while your case is in court for several years as is commonly the case. There are even lawyers that focus on insolvency cases exclusively.
Once you have your lawyer, you need to file for insolvency once only in a 6 month period. All courts will not approve your filing for insolvency if you fail to meet some conditions as well. Make sure you keep up with the repayment schedules and also show up for any hearings.
You also have to spend some time in getting the needed paperwork in order. You must file for your assets and all your liabilities. You will also need to present income and expenditures records to the court.
When you opt for the Florida Chapter 11 bankruptcy, you must be prepared to work hard. Find the best lawyer you can and get all the necessary paper work done. You must listen to what your lawyer tells you and pay off your debts as soon as you can.
Recovering from a debt is indeed hard but not impossible. With the help of right knowledge of lawful procedures along with right patience and fortitude, repaying debt becomes considerably easy. If you are one of the debtor, you must know about all your rights and processes in cases where you are not in state to repay the debt. Most of the people are generally not aware of their rights and end up in losing much more than their debt and their career as well.
All about Chapter 13…
There are certain laws designed by the government to relieve the debtors on the occasions where they are not able to repay their debts. Chapter 13 Florida covers the guidelines to prevent liquidation of the assets and is more of “reorganization” in which the debtor proposes a repayment plan of 3-5 years to the creditor.
By filing bankruptcy under Chapter 13, the debtor is believed to repay all the debts from his future income and can prevent his assets such as foreclosure of the property, car and other mortgage payments. Interests on tax debts can also be impeded. If the debtor meets all the terms of repayment till the end of the proposed plan that is generally 3-5 years, he is then exempted of all the remaining dischargeable debt.
The amount to be repaid by debtor primarily depends on his throwaway income and several other factors. The entire amount to be paid to the creditors should at least match the amount they would have received if case was filed under Chapter 7 of bankruptcy.
One of the eligibilities of being able to file under chapter 13 is that the debtor should have some source of regular income and some funds to be able to apply for Chapter 13 repayment plan. Filing under this law is beneficial if the debtor wishes to repossess their assets. The debtors can then effectively make up to their missed payments and can sort off reinitiate the actual agreement.
For this reason Chapter 13 is also termed as reorganization and chapter 7 as liquidation. However for other cases where the individual just wish to confiscate the liability of debt, Chapter 7 can be a good choice.
How exactly chapter 7 and 13 differ…
The major difference between the two is basically their time periods. A chapter 7 case lasts for a duration of 3-4 months, whereas Chapter 13 Florida on an average takes around 3-5 years. Even though most of cases filed in florida are under chapter 7 yet here are some of the obvious benefits that why you should prefer chapter 13 over 7.
Aside from preventing the assets, this law can considerably reduce your secured debts to a newer value as per the security. Moreover you can also get relieved from the dischargeable debt such as liability of repaying because of divorce or separation agreement.
It is not uncommon to see people getting into debt. Debt, though agonizing, is not unmanageable. By taking some prudent steps they can be cleared, and those indebted can put their financial standing back in order, provided there is a foreseeable income coming in. In some scenarios this is not possible however. The reasons may be, the debts are too large for the affected to handle or simply the person may be unable to stand harassment any longer. Pondering over the problem and delaying action only adds to woes. For people like these, the best solution is to seek legal redress by filing a bankruptcy proceeding before a competent court.
Filing a bankruptcy proceeding in a competent court – a Federal Court in Florida for example, ensures immediate protection from creditors taking charge over the filer’s properties. The other reliefs they get include, protection from creditors trying to take repossession, stopping utility companies from discontinuing services, foreclosure of loan by lenders, elimination of liens in some cases or modifications to repayment schedules and even exemption from paying unpaid accident claims awarded by courts. If you are one of those affected by unmanageable debts and live in Florida, then, you should hire one of the bankruptcy lawyers in Florida immediately.
When you file for bankruptcy proceeding, the first relief you get is an automatic stay, and it binds everyone who have a stake in it. Typically, due process takes about 3 month to be completed before the filer is finally discharged from all obligations. There are two chapters under which bankruptcy proceeding is filed – Chapter 7 and Chapter 13.
When you apply for bankruptcy under Chapter 7, also known as ‘straight’ or ‘liquidation,’ all creditors, including credit card companies, lawsuit plaintiffs and doctors, and others are barred from recouping their money from you directly. It is total and you can start afresh from scratch. But, before the court finally discharges you, it will apply the means test to check if you are acting in good faith. An income lower than the state median for 6 months preceding application, presumes you are acting in good faith; otherwise the court will examine your application at greater depths before deciding.
Chapter 13 is radically different as compared with Chapter 7. It is more about reorganizing the applicant’s finances. Typically, the courts will allow anywhere between 3 and 5 years for the filer to repay debts based on present income levels and what can be apportioned to meet debts. Usually the court draws an action plan to which every stake holder will be obliged to abide. Though the provisions of Chapter 7 and Chapter 13 of the law of bankruptcy appear to be transparent, there are subtle nuances to getting relief under them. Bankruptcy lawyers in Florida can advice you on what is best for you.
Majority of applicants in Florida file for bankruptcy under Chapter 7, though it is the prerogative of the courts to entertain or to issue a directive to be taken up under Chapter 13. The biggest advantage of Chapter 13 is you can retain the titles to your assets, but you must prove you ability to service the debts as directed by it.
Economic downturn can occur in anybody’s life but it can sometimes become really hard to deal with it. On the top of it, the pressure from banks and other creditors for the repayment can add on the woes and situation can become too hot to handle. In such conditions, a bankruptcy attorney can be of great aid in overcoming or recovering from such a worse economic condition.
Need of Bankruptcy Attorney
A bankruptcy attorney in florida can help you in recovering from undesirable debt conditions. Basically filing bankruptcy prevents all the creditors and banks from looking for debt from the borrower and then all the liabilities are sorted as per the laws of the government. A borrower can file bankruptcy when he is unable to meet the repayments and needs to make a fresh start to his financial career. With the aim to improve the financial conditions of the borrower, bankruptcy is a legal proceeding and all such cases are dealt within the federal court.
Benefits of filing Bankruptcy
* Prevents you from the harassment from the debt collectors, stops wage garnishment and other actions to seek out money by the lenders.
* One is also then empowered to challenge the claims from the creditors who are seeking out extra money that the borrower do not even liable to pay off. There are times when creditor takes the advantages of bad credit conditions and commit fraud to be able to gain additional money.
* It can help you prevent foreclosure on the properties such as home, cars etc and even if the creditors have already taken the possession, filing may force the creditors to give back the repossessed property.
* It can help to prevent or restore termination of the utility service and can give the borrower the opportunity to make up to the repayments.
* Moreover it can eliminate the liabilities to pay major or all most all the debts. This is also known as the discharge of the debts and the borrower is then allowed to make a new start to his financial career.
Getting the Best Representative
The best to get to know the best attorney is by enquiring your relatives, friends, colleagues and any other person that can help in finding a reliable attorney. An attorney will also help in filing bankruptcy. Another way is to look for the bankruptcy attorney over the internet around your geographic location. Once you have the reference or you a find out a couple of bankruptcy lawyers, it is imperative to meet them and discuss your conditions.
Discussing will help you in determining the efficiency and outlook of the lawyer and hiring decision will become much easier. An ideal bankruptcy attorney florida will be well qualified and will have relevant experience in this niche. Before hiring, it is important to consider the experience and feedback from the former clients and it can be done by initial consultations also called the short introductory meetings. Some of the attorneys may offer their initial consultation time free of charge; however others may ask for a moderate fee, it should be then made sure before booking an appointment with the attorney.
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A Chapter 13 bankruptcy is the specific type of legal proceeding that is granted under Federal statues to provide a repayment program for debts that are owed. Under Chapter 13 bankruptcy, a three-year or a five-year repayment plan is created for specific creditors according to the rules governing bankruptcy and through agreement by all parties involved. The arrangements are all overseen by a trustee who is appointed by the Federal court.
When someone files a Chapter 13, it means that they are not able to repay their debt obligations as they originally agreed to do when the debt was taken on. Chapter 13 bankruptcy law allows for these debts to be reorganized for the purpose of repayment. This is different than a Chapter 7 one, in which the debts are discharged immediately instead of being set up with a repayment schedule.
In most cases, a Chapter 13 one has a repayment plan in which the debtor makes monthly, bimonthly or weekly payments to the trustee. The trustee then provides help by taking care of properly dispersing the payments to the creditors. In most instances, the amount of the debt has been restructured and is less than the full amount that is owed to all the creditors.
It is the trustee in a Chapter 13 bankruptcy who is in the position of analyzing the financial situation of the person filing for bankruptcy, so that he can make a reasonable repayment plan and set the dollar amount of the payments that are to be made to the court monthly. The trustee looks at the earning potential of the family, or the individual, and notes any obligations and living expenses that are needed and then decides on the amount the debtor will be able to repay over the course of the repayment plan.
Because a Chapter 13 requires that regularly scheduled payments be made to the court, it is generally recommended only for debtors who have a regular and stable income. For those who are seasonal workers or freelancers, filing Chapter 13 bankruptcy is not the best solution for their financial troubles, in most instances.
When a debtor has agreed to the terms and payment plan of a Chapter 13, it is crucial that they always make their payment to the court on time. If they fail to make their payments as agreed, the entire court record and case can be thrown out.
Should this happen, the creditors once again have the right to come after the debtor for the full amount of the debt and the protections under the bankruptcy relief process would not be available to them until they are eligible to file it again.
If it occurs that a debtor, who is under a repayment plan through a Chapter 13, is not able to keep up with the payment schedule, then there is the possibility to find relief from the reorganization provisions agreed upon. In the case of a situation that arises, in which the debtor is unable to make the payments to the court as agreed, such as in the case of losing a job or other source of income or if they have an extended illness, they might be able to file a bankruptcy claim form known as a “hardship discharge.”
For a debtor who has agreed to a Chapter 13 bankruptcy repayment plan to be able to seek a “hardship discharge,” the case cannot qualify to be changed into a Chapter 7 one instead. It is best to have a bankruptcy attorney reviews the various guidelines and requirements before trying to make any type of changes to a Chapter 13 plan.
Any type of change to a filing Chapter 13 bankruptcy means that the debtor must return to the court and this step can be both stressful and expensive. Because of this, it is strongly recommended to make every effort to stick to the repayment plan.
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In the United Kingdom, Individual Voluntary Arrangements are commonly practiced as an alternative to filing for bankruptcy.
It is an official contract made between creditors and debtors; the agreement is legally binding. It lets a debtor become debt free with convenience and saves him from the stigma of insolvency; it allows the creditor recover as much debt as possible from a debtor who is on the threshold of bankruptcy.
Chapter 13 option under the bankruptcy code involves restructuring of debts that allows a debtor to repay his debts with whatever income source he has. It is applicable for people who have a proper income and are in a position to apply for adjustments. After filing chapter 13 bankruptcy, a debtor is required to decide on a repayment plan within 15 days. He needs to attend all the important creditor meetings that follow after that. As and when the court approves your repayment option, the bankruptcy process will start.
Let us look at the main advantages of a chapter 13 bankruptcy. Court protection – Once a debtor has lodged a chapter 13 bankruptcy, he will be granted protection by the court from the debt collection agencies and the creditors. That means it is illegal to contact a debtor after he has been granted the chapter 13 petition.
Free from debts – This bankruptcy option clears most form of unsecured debt. However, secured debts cannot be shaken off unless there is a repossession deficiency.
After the arrangement is made, you have to pay a certain amount of money to your Insolvency Practitioner.
The practitioner will deduct his monthly fee from the amount thus handed over and then break up the remaining amount to pay off your creditors. If the payment is done like this on a regular basis, you will become debt-free in a period of five years.
Free from tension – This bankruptcy option allows a debtor to lead a worry free life by eliminating severe debt problems. Are you facing severe financial problems? Do you want to file a chapter 7 bankruptcy? San Bernardino dwellers can seek professional legal assistance from Miller and Associates, PC and bid farewell to all your tensions.
Increase in unemployment has given rise to uncertainty of jobs and financial problems. When the monetary condition of an individual is in a mess then he is unable to pay back his debts. For this reason he acquires services of a bankruptcy lawyer. A good bankruptcy representative plays a significant role in enhancing your financial condition.
You must hire an experienced and skilled attorney to come out of the fiscal crisis you are going through. For this make your own searches over the internet and evaluate the recommendation list of various bankruptcy attorneys. After this, personally consult these legal representatives and analyze their skill and experience. Inquire about the fees they charge in the overall process and ensure that they do not have any hidden charges. Some of these attorneys will ask to pay the entire fee in advance. Look at your budget and accordingly finalize the lawyer.
Following are a few tips that have to be considered before hiring a bankruptcy attorney in Florida:
* Status and knowledge of the attorney:
Bankruptcy proceedings play an imperative role in improving economic conditions of your family. So ensure that the professional you hire as a legal representative is skilled and has years of experience. You will get to know about his reputation through online reviews and assessments made by other individuals. Worthy attorneys have an excellent success track record and are known for enhancing financial life of many individuals.
* Scheme and strategy:
As in case of insolvency lawsuits, the person’s financial future is at stake. So the attorney should be able to formulate a plan of action about the entire proceeding scenario in advance. The client should opt for the attorney who devises a good strategically sound plan of action.
* Cost effectiveness of the firm:
The first consultation with bankruptcy lawyer is generally free of cost. Before acquiring the services of a particular attorney it is advisable to inquire about the fees involved in the entire case proceedings. If you find it reasonable and in your budget, then you can consult that attorney for further case scheduling.
* Size of the law firm:
Bigger firms provide better bankruptcy lawyers. So the person in insolvency condition should go for attorneys working for medium or big sized law firms. These firms usually hire attorneys who have years of practice and knowledge.
* Patient and comfortable level of interaction:
You should feel comfortable while conversing with your insolvency attorney. Get services of the legal representative with whom you can share the case details with ease. The impoverish person should be able to trust and rely on his attorney. He is undergoing a low phase of his life, so must get a feel of respect and nobility while talking to the lawyer. The attorney must be an amicable person who answers to the client’s questions with patience and in detail.
If you are undergoing fiscal crisis and want to take services of a bankruptcy attorney in Florida, then do consider these factors. They will assist in hiring a profitable and worthy legal representative for your case.
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Everyone has those moments when they are broke- even the wealthiest of people on this planet. They are not exactly moneyless but rather their money is with someone else. However, when you have loans and you are unable to pay them, you have to face the fact that you are broke. This is by filing for bankruptcy. Let it be known right from the start that this is not the only way to get out of debts. In fact, it is not the best way to get out of debt. When you want to stop foreclosure, it is among the best though.
Many people want to understand how to stop foreclosure NYC by filing for bankruptcy. The dynamics of this process are not so clear. As such, a majority of people choose to go about the process on their own. It is worth mentioning that the most important thing in a bankruptcy case is to get in touch with an excellent bankruptcy attorney. It sounds pointless to find a lawyer who you will pay money when your biggest problem is money. Nevertheless, your property is at stake and you want to prevent your creditor from seizing it and so a lawyer will come in really handy.
Getting out of debt
When you get in touch with the best bankruptcy attorney NYC has to offer, you will explore some methods of getting out of debt before filing for bankruptcy. Bankruptcy attorneys have a really good understanding of financial management. They are able to provide you with advice on how you can get out of debt. Sometimes, you do not need to go through the whole process of filing for bankruptcy. You could go for options like debt consolidation and debt settlement. These two processes also require the assistance of an attorney especially the debt settlement.
Filing for bankruptcy is the most drastic option. It is usually the last resort when you are completely broke and you are not able to make your payments comfortably. The first thing that you need to do in order to file for bankruptcy is take the credit counseling courses. These can be taken right from the comfort of your home nowadays all thanks to internet technology. A good attorney is going to guide you to the best place to access these classes.
How bankruptcy stalls foreclosure
Another thing that your lawyer will help you out with is figuring out whether you should file for Chapter 7 or Chapter 7 bankruptcy. They can be a bit tricky. The court will automatically issue an order which is called the order for relief. This order includes an ‘automatic stay’. The automatic stay is basically a directive to your creditors to stall their collection activities with immediate effect. In other words, if your house was in the lineup for foreclosure sale, the sale is going to be postponed.
The bankruptcy will be put pending for about three or four months- typically. In this time your creditor cannot sell your home. There is the likelihood that your creditor will file for a ‘motion to lift stay’. This gives them the permission to proceed with the sale.
These are the basics of how to stop foreclosure NYC by using the bankruptcy method. The fact that you need an attorney to help you out cannot be emphasized more than it has. Usually bankruptcy attorneys do not charge a fortune for their services. They do understand that you are having financial issues and therefore will not push you to your limits with ridiculously high legal fees. They are going to help you out in the whole process of filing ensuring that you beat all filing deadlines.
When you get in touch with the best bankruptcy attorney nyc has to offer, you will explore some methods of getting out of debt before filing for bankruptcy. Bankruptcy attorneys have a really good understanding of financial management.
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