Bankruptcy Attorneys Making a Difference in the Lives of Their Clients For Years to Come

If you are considering bankruptcy, it can feel like you are at the end of your rope with few options left. You are not alone, and bankruptcy is more common than you think. It doesn’t have to mean that it is your only option, but if it appears, you can file for bankruptcy and get back on track with your credit and life with minimal interruption. There are a few standard options for filing bankruptcy, and we will discuss those below in more detail.

Contact my law firm today at 407-499-5680 to discuss what your specific circumstances are, what options are available to you, and how we can work together to form a strategy that gets you back on target to move forward in the next chapter of your life. I have worked with clients for years and have a vast knowledge of ways to resolve your current situation and focus on the future.

What Types of Bankruptcy are Common?

There are two common forms of bankruptcy. One is filing for Chapter 7, and the other is filing for Chapter 13. Some individuals choose to file for both in a short period of time, depending on their circumstances. Each person brings a unique set of details to the table when deciding which option is best for them. Read below to learn more about which of the two most common options may work for you.

Chapter 7 Bankruptcy has some appealing characteristics, making it one of the most common forms of bankruptcy that individuals will file. It is attractive because it allows you to feel that you can clean the slate and have a fresh start. It is designed to enable you typically to walk away from debts such as personal loans, medical bills, credit card debts, and more. One of the first steps in this process is agreeing to designate a trustee, in some cases your attorney, that is in charge of liquidating some of your assets and using that money to pay back the debt owed. This can be things like cars, houses, and other valuable assets. Once liquidated, this money can be sent to creditors to satisfy the outstanding debt and resolve the loan or credit line.

One of the other appealing characteristics of filing Chapter 7 is that the process can be relatively short. Six months is pretty typical for this process from start to finish. In some cases, you can also continue to hold some of your assets in your name to continue life by bringing in an income. It has some unappealing characteristics in that you will lose the rights to liquidated assets. You can also not include past due child support, income taxes, or student loans in the debts filed in Chapter 7 bankruptcy. These will remain active, and you will still be responsible for paying them off separately from your bankruptcy process.

Chapter 13 is another standard option that some find appealing because they can maintain most of their assets in their name. It can be an excellent option that allows you to catch up on past-due payments over a set number of years and continue to carry those assets in your name. Another appealing characteristic is that, in most cases, you can stop foreclosure on your home or repossession of your vehicles. If you are eligible for Chapter 13, you will be set up on a payment plan (typically 3-5 years), and your creditors will be paid back the fair market value of the debt owed to them. The income requirements for this type of filing are higher because you must prove that you can meet the payment plan in the allotted time to satisfy your debt.

What are the Steps to File for Bankruptcy?

If you intend to file for bankruptcy, you are generally required to complete a credit counseling course within six months of filing for bankruptcy. This process aims to help a debtor avoid bankruptcy by teaching them things like money management, debt management, and budgeting. If it has been more than six months since you completed the credit counseling course, you may be required to complete it again before filing.

The next step would be to determine which chapters you want to file for based on what you are eligible for. Each state may have further requirements, such as establishing your household income and determining whether or not you fall below the state median, which can also change your options.

The next phase would be to prepare your documents. Things to include would be income documentation or the last couple of years of tax returns, a list of all secured and unsecured debt in your name, a list of monthly living expenses, a list of all assets in your name, documentation of any large purchases you have made in the last two years, loan documents, titles to cars or deeds to any recent real estate transactions, and more. Your immigration attorney can sit down with you to determine what other items that aren’t on this list may be beneficial for you to include. They can also help you to determine what items are exempt from liquidation or sale in the Chapter 13 process.

Filing for bankruptcy is the next step. You can work with your attorney to ensure you have completed the necessary paperwork and included all the required documents. Typically, filing for bankruptcy can grant you an automatic stay, which prohibits creditors from attempting to collect debts that are included in the bankruptcy filing.

The bankruptcy discharge is the final step in the process. Depending on the specifics of your bankruptcy agreement, this can provide a great sense of personal relief and relief from most of your debt. The essential last step, however, is for you to begin to build your credit back up and prevent the need for bankruptcy filing in the future.

Why Hire an Attorney?

The guidelines surrounding bankruptcy can be complex. There are strict timelines that need to be adhered to, documentation that needs to be provided to help you to achieve the best outcome, and more that can leave room for unnecessary eros. These errors can create stress for you and push back deadlines, which can cause you to incur more debt or possibly begin foreclosure or repossession processes.

By working with an experienced professional, you can ensure that you take all the necessary steps and avoid unforeseen problems. It can cost more money to hire an experienced attorney, but it can save you time and significant money, in the long run, to know that it was handled the first time correctly.

Contact my office today at 407-499-5680 to discuss your specific situation and learn how I can best assist you in moving forward.