Curious if you fit in a Chapter 7 or instead a 13 or an 11?

If you have little in assets that are owned free and clear, are not behind on payments for things you want to keep and fall below this chart, (click on Median Family Income Based on State/Territory) you may fit in a Chapter 7.

If you want time to catch up on a house, wish to get rid of a 2nd mortgage, or have assets owned free and clear you are trying to protect from creditors, you may be looking at a Chapter 13.

If you seem to fit in a Chapter 13, but owe more than $1 million total or $750,000.00 for items you are buying, you may be in a Chapter 11 posture.

Will bankruptcy hurt my credit rating?
While Bankruptcy will adversely affect your credit rating, it often represents the first step towards reestablishing your credit. Any information on your credit report concerning unpaid bills will stay on your report until paid in full or until reported as bad debt. Once such items are reported as bad debt they will still remain on your credit history for 7 years. Federal law limits the length of time that a bankruptcy can be reflected on your credit report to 10 years. Thus, bankruptcy draws a proverbial line in the sand and prevents negative information from being carried on your credit report indefinitely.

Will I be able to get another car or house if I declare bankruptcy?
First, it is important to note that many people are able to keep their house and their car(s) while still obtaining the benefits of bankruptcy. However, many people worry that if they file bankruptcy that they will never be able to buy another house or finance another car. However, the truth is that many finance companies see an individual as a better credit risk afterward rather than before when that person had so much outstanding debt. That being said, you still will be regarded as a credit risk and your interest rates will be higher.

Informative Bankruptcy Information

A judgment by a credit card company can actually be worse for your credit than filing bankruptcy. Many of our bankruptcy clients report repairing their credit in less than 3 years, following a successful bankruptcy.

Contrary to popular belief, in a bankruptcy, you may be able to keep your car, home, or other goods.

Once you have filed for bankruptcy, any pending lawsuits against you by creditors will be halted immediately. This also stops the harassing and threatening phone calls which creditors and collection agencies often rain down upon you. After you have filed for a bankruptcy, creditors and collection agencies can no longer attempt to contact you.

Debt Consolidation Agencies:

Most so-called debt consolidation agencies are not "non-for-profit" organizations, and may actually damage your credit even further. Many debt consolidation agencies are often paid by credit card companies or take a portion of your payments.

Are you aware that Florida has some of the most debtor-friendly laws in the United States. 

There are two basic types of cases most individuals file (Chapter 7's and Chapter 13's), and a third kind some people rarely file (Chapter 11's).

A Chapter 7 is generally for when people make under a certain amount. - (click here to see that amount - click on "Median Family Income Based on State/Territory") - or when we find other ways that person may fit into a 7. In a Chapter 7, someone will usually pay very little or nothing in and finish 4-6 months later discharging debts on all of those things they do not wish to keep, except student loans and many types of IRS debts

A Chapter 13 is usually used to allow someone to focus on catching up their home payments, "stripping" second mortgages off their homes, or otherwise surrendering real estate or discharging credit card debt where someone either makes over a certain income or owns things that would have otherwise been taken by the Trustee in a Chapter 7.

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Common General Bankruptcy Questions:

Do I need an attorney to file bankruptcy?
An individual debtor is always entitled to represent themselves. However, bankruptcy is a complex area of the law. An attorney can make sure that the benefits of bankruptcy are maximized for you and that your interests are properly represented when it comes to the valuation of assets, exemptions, challenges to your automatic stay, objections from creditors and dealing with secured creditors. An attorney can help you avoid the nightmare scenario of losing all your assets and then finding out that some of your debts were not discharged. Filing for bankruptcy is a major life decision that will have repercussions for years to come. It is therefore, critical that your bankruptcy case is handled correctly and that your interests are fully represented.

How much does your firm charge for a bankruptcy?
Our rates vary depending on the complexity of the case. However, we remain competitive with our pricing. We use a flat fee approach, including all of the services, documents, fees and costs necessary to finish a routine case in one all-inclusive flat fee. We offer free consultations.

How long does it take before my creditors stop harassing me?
Once your case has been “commenced,” i.e. filed with the Bankruptcy Court, your creditors must cease all attempts to collect money from you. That means that they will be prohibited from contacting you. Once you pay at least $199 to retainer our firm, you may advise your creditors we are working for you and to call us instead. Most creditors will stop calling at that time, even before you file.

What are the different types of bankruptcy and which one is right for me?
There are three main types of bankruptcy. Each one is controlled by a different chapter of the bankruptcy code. Chapter 7 is a liquidation proceeding while the other two, Chapter 13 and 11, are reorganization plans for individuals and businesses respectively.

• Chapter 7- “straight bankruptcy": Chapter 7 is the liquidation or “straight bankruptcy” chapter of the Code. Both individuals and businesses can file under this Chapter. The basic idea behind a Chapter 7 is that all non-exempt property is surrendered, liquidated and distributed by the trustee to the creditors. However, it is often the case that unsecured creditors receive nothing in a Chapter 7 bankruptcy. This result can sometimes be reached by properly claiming exemptions, by giving assets their proper valuation in light of the Chapter 7 proceeding and by negotiating with secured creditors

• Chapter 13- Debt Consolidation / Individual reorganization: Chapter 13 is a reorganization plan for individuals. An individual in a Chapter 13 is put on a payment plan for a period of 3-5 years. The advantage of a Chapter 13 is that the individual does not have to surrender any of his/her assets so long as payments are made on the plan. A Chapter 13 petition is ideal for someone who has a steady income and 1) needs some time to catch up on a mortgage payment, 2) has valuable non-exempt property or 3) has debts that are not dischargeable in a Chapter 7 proceeding.

• Chapter 11- business reorganization: A Chapter 11 is a reorganization proceeding for businesses or individuals that cannot meet the criteria for filing a Chapter 13. In a Chapter 11 a repayment plan is created and classes of creditors are formed. The creditors vote on the plan and it must be approved by the court. A Chapter 11 is generally used to save a business that would otherwise be liquidated in a Chapter 7 bankruptcy.

How long does bankruptcy take?
A chapter 7 takes from about 3 ½ to 5 months, however, your relief from creditors starts one your case is filed. A Chapter 13 involves a payment plan that ranges from 36 to 60 months.

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