Expert Bankruptcy Lawyer Services in Palm Bay, FL
Understanding Bankruptcy
What is Bankruptcy?
Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the federal bankruptcy court. It provides a fresh start for those who are overwhelmed by financial burdens, allowing them to regain control of their finances.
Types of Bankruptcy: Chapter 7 and Chapter 13
There are two primary types of bankruptcy available to individuals: Chapter 7 and Chapter 13. Chapter 7, often referred to as liquidation bankruptcy, allows you to discharge most unsecured debts. Chapter 13, on the other hand, involves creating a repayment plan to pay back a portion of your debts over time.
How Bankruptcy Can Help You
Bankruptcy can offer significant relief by stopping collection efforts, preventing foreclosure, and eliminating or restructuring debts. It can be a powerful tool to help you rebuild your financial future and escape the stress of overwhelming debt.
Chapter 7 Bankruptcy
Overview of Chapter 7 Bankruptcy
Chapter 7 bankruptcy is designed for individuals who have limited income and cannot repay their debts. By filing for Chapter 7, you can discharge most of your unsecured debts, such as credit card bills, medical bills, and certain tax obligations, giving you a clean financial slate.
Exempt Assets in Florida
In Florida, certain assets are considered exempt from bankruptcy liquidation, meaning you can keep them even after filing. These exempt assets may include your homestead, personal property, and your vehicle, up to certain limits. Understanding these exemptions is crucial to protecting your property during the bankruptcy process.
Benefits of Filing for Chapter 7
Filing for Chapter 7 bankruptcy can provide immediate relief from creditors, stop wage garnishments, and eliminate overwhelming debt. It is often the best option for those who qualify and are looking for a way to start fresh financially.
Chapter 13 Bankruptcy
Overview of Chapter 13 Bankruptcy
Chapter 13 bankruptcy is an option for individuals who have a steady income but are struggling to manage their debt. It allows you to create a repayment plan that lasts between 3 to 5 years, enabling you to pay off your debts in a manageable way while keeping your assets.
Creating a Repayment Plan
Under Chapter 13, your attorney will help you develop a repayment plan based on your income and financial situation. This plan will prioritize secured debts like your mortgage while addressing unsecured debts as your finances allow. The goal is to provide a structured path to financial recovery.
Benefits of Filing for Chapter 13
Filing for Chapter 13 can stop foreclosure, protect your assets, and provide a clear plan for getting out of debt. It is particularly beneficial for those who want to keep their home or car while catching up on missed payments.