12Law Arrow 12Law Arrow  Easy Questions  
12Law Arrow 12Law Arrow Instant Legal Documents

Cohabitation Agreement coming soon!
Separation Agreement coming soon!
No-Fault Divorce coming soon!
Bankruptcy coming soon!

Guide to Personal Bankruptcy in Zip Code 32123

Guide to Personal Bankruptcy in Zip Code 32123

Bankruptcy is a serious decision that people have to make.
- Herb Kohl

Bankruptcy is the legal status of a person or other entity when debt due is not paid to the creditors due to insolvency or inability to pay the debt.

Two Different Types of Bankruptcy

Bankruptcy is imposed by a court order, usually initiated by the debtor. It is a long standing component of American law for an individual to file bankruptcy in order to obtain a fresh start.

There are two basic types of personal bankruptcies: Chapter 7 and Chapter 13.

An individual may file for bankruptcy under Chapter 7, which is sometimes called "fresh start" or a "liquidation" bankruptcy. In a Chapter 7 bankruptcy, an individual may keep certain kinds of property (called "exempt" property), and his or her remaining property will be sold to pay off his or her debts. When an individual is discharged from Chapter 7 bankruptcy, most of his or her preexisting debts will be discharged (i.e., will disappear).

In the Bankruptcy Code, the majority of individual bankruptcies are chapter 7. People choose this for a variety of reasons, one of which is they have a large payment that they are incapable of paying due to unemployment. This process is faster and can only take four to six months to be resolved.

Filing for bankruptcy under Chapter 13 is different than doing so under chapter 7. Chapter 13 (sometimes called a "wage earner plan" allows an individual to pay his or her debts over an extended period using a court-approved, supervised, and enforced payment plan. Not all creditors are paid in full, and unpaid amounts will be discharged (with some exceptions). Chapter 13 bankruptcy filers help create their own payment plans, which give them three to five years to pay personal debt from their disposable incomes (i.e., whatever is left after necessary expenses, like food and shelter, have been paid). In a chapter 13 bankruptcy, individuals are often allowed to keep their property.

Eligibility for either chapter 7 or 13 is determined by the person's living expenses, debts, and income.

Why Do Courts Allow Bankruptcy Filings?

In the case of businesses, the primary purpose of allowing bankruptcy or debt is restructuring is not to eliminate insolvent entities, but rather to help them to remodel the financial and organizational structure of debtor companies experiencing financial distress so as to make them viable, so they can continue to hire workers, provide goods and services and operate their business.

For private households, it goes beyond dismissing debt but also focuses on addressing the underlying problems to minimize the risk of financial distress re-occurring. Credit counseling, a supervised rehabilitation period, financial education and social help to find sources of income and to improve the management of household expenditure can help individuals and families find paths to long-term solvency.

Who can file for bankruptcy?

Anyone can file but not all can be qualified to file for a particular type of bankruptcy. If you have the previously filed a Chapter 7 bankruptcy, you cannot file for the same type within eight years. Filings for bankruptcies are for honest debtors with no way to pay for their debts. If you cannot honestly afford to pay your debts, may qualify to file for bankruptcy. You have to show proof, however, that you are incapable of paying your debts by showing your personal tax returns, proof of income for the last six months prior to filling and certificate of attendance at a mandatory counseling class.

What is the Process in Filing for Bankruptcy?

Common elements in obtaining a bankruptcy discharge: • Attending a pre-filing credit counseling course at an approved credit counseling agency. • Drafting paperwork with an attorney. • Providing proof of your income over the past six months to determine eligibility. • Determining which assets are safe in a bankruptcy. • Filing paperwork with the bankruptcy court. • Attending a short meeting with the United States Trustee. • Attending a post-filing personal finance management class. • Receiving a final discharge of debts from the bankruptcy court.

Pre-Bankruptcy Credit Counseling

It is required that before you can file for a bankruptcy petition, you must first meet with a counseling agency approved by the United States Trustees Office six months prior to you application. The purpose of this consultation is to see if there ways for you to pay your debt without resorting to the filing of bankruptcy. If repayment plan is impossible you should secure your certificate from the agency confirming that you have undergone counseling. Attending a personal finance management class where another certificate is issued, is another requirement to complete bankruptcy application.

2005 Bankruptcy Reform Act

In 2005, Congress significantly amended the bankruptcy law making it more difficult for an individual to file for bankruptcy. However, bankruptcy relief is still available for those who are qualified. The revised elements of the bankruptcy laws were: • A credit counseling class is required before someone can file for bankruptcy and a financial management class is required after the filing • Individuals with higher income must file under chapter 13, making it harder to walk away from debt obligations • The courts scrutinize bankruptcy filings more closely and require additional documentation • Additional burden on Lawyers representing bankruptcy clients - they must personally vouch for the accuracy of all of the information their clients provide them, requiring more time and more fees • Credit and financial budget counseling is required • Property must be valued at replacement cost, instead of a "fire sale" cost • A particular state's exemptions may not available to recent residents (although those residents may be able to use their prior state's exemptions).

Saving your Home and your Car

A person's home and car is recognized by the bankruptcy law as essential to his or her existence. In a "homestead exemption" or "automobile exemption" a person is allowed to keep his or her home and car.

Personal Property Exemptions and Other Assets

Personal items by the person who filed for bankruptcy can be kept as long as they only have nominal value. Expensive items however, must be disclosed to the bankruptcy court and will likely be sold to pay off your creditors. Individuals' "tools of trade" can be retained because it is use to do their jobs.

Can Credit Card Debt be Forgiven?

Yes, with the exception of credit card charges that were run up immediately before a bankruptcy filing, credit card debts may be forgiven. Credit card companies can no longer press you for payments after filing for bankruptcy. An "automatic stay" of all collections activity goes into effect, so you will be spared from harassing phone calls, letters or threats from lawyers of the credit card companies.

Which Other Debts can be Discharged?

Many others debts can be dischargeable in bankruptcy except spousal and child support payments, criminal fines, and penalties and other debts not set forth in the debtor's filed bankruptcy list. Common dischargeable debts are medical bills, lease and contract obligations, credit cards balances, personal loans and promissory notes. Students' loans may also be discharged depending on the discretion of the bankruptcy court to decide if the debts are dischargeable based on the debtor's circumstances.

Married Couples

A person is responsible for his or her own debt. In case of married individuals, the responsibility to repay the debt depends upon the circumstances in which the debt was incurred. If both spouses co-signed a debt obligation together, both of them share this debt. One spouse may file bankruptcy to discharge their individual debts, or both may file jointly. However bankruptcy filing by one spouse does not exempt the other spouse from the debt obligation. In order to file a bankruptcy petition jointly, you need to be legally married.

Common Mistakes to Avoid

A short list of common mistakes made before and during the bankruptcy process is as follows: • Repaying money to relatives or friends. A court can require that the relative that received the money return it so that it can be redistributed equitably across all creditors. This will happen if you repaid applies to any repayment to relatives or friends in the year before you file for bankruptcy. • Hiding creditors. You cannot discharge a debt that is not on your disclosed list. You have to list all person and company in which you own money. • Shifting assets to a child or relative before you file for bankruptcy is not allowed.

What are the Risks in Concealing Assets?

Disclose all your assets, as required by the bankruptcy law. The U.S. Trustee, IRS auditor and the FBI fraud division are checking on all the bankruptcy filings. Bankruptcy fraud is a serious offence and you could be charged with a felony or a Federal crime if it is found out that you did not disclose all your assets.

What about Credit Consolidation Services?

These companies offer to help you avoid bankruptcy by restructuring your debt outside of bankruptcy. If you negotiate lower payments or reconstruct your debt outside of bankruptcy you could incur tax liability for the financial benefit. These organizations are funded by big industries that try to collect as much money from you as possible.

What are the Alternatives to Bankruptcy

The alternative is to find other ways to pay off your debt obligations. Bankruptcy may not be the best solution for you. You might want to take some steps to settle your debts by selling your valuable assets. You can also ask the aid of your family if they are willing to help you.
Personalize & Print a Free FL Last Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Personalize & Print a Free FL Living Will Create This Document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Related Legal Services near Zip Code 32123
Wallace Dennis R
359 W Dearborn St
Englewood, FL 34223
(941) 916-9888
Attorneys, Criminal Law Attorneys, Family Law Attorneys, Wills, Trusts & Estate Planning Attorneys,
Levy Joshua
1640 S State Road 7
Hollywood, FL 33023
(954) 987-9446
International Law Attorneys, Attorneys
Emerich, Guy S - Farr Farr Emerich Hackett
33 S Indiana Ave
Englewood, FL 34223
(941) 460-9334
Corporation & Partnership Law Attorneys, Attorneys, Probate Law Attorneys, Wills, Trusts & Estate Pl
Credit Advocates, LLC
1551 Sawgrass Corp Parkway, Suite 440
Sunrise, FL 33323
(954) 835-9330
Consumer Law Attorneys,  Attorneys,  Bankruptcy Law Attorneys,  Civil Litigation & Trial Law Attorne
Kullman Jared J
1910 S State Road 7
Miramar, FL 33023
(954) 629-9319
Wills, Trusts & Estate Planning Attorneys,  Attorneys,  Real Estate Attorneys,  Bankruptcy Law Atto
Ovink B John
14614 7th St
Dade City, FL 33523
(352) 567-9313
Attorneys, Immigration Law Attorneys, General Practice Attorneys, Legal Service Plans
Leiby Stearns & Roberts PA
1000 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(954) 382-9199
Attorneys,  Construction Law Attorneys,  Legal Service Plans,  Attorneys Referral & Information Serv
Francois and Associates
6453 Pembroke Rd
Hollywood, FL 33023
(954) 391-9009
Immigration Law Attorneys, Attorneys
Cohen, Stacie L - Fenster & Cohen
1391 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(954) 845-8989
Attorneys,  Personal Injury Law Attorneys,  Insurance Attorneys,  Litigation & Tort Attorneys
Fenster And Cohen PA
1391 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(954) 845-8989
Civil Litigation & Trial Law Attorneys, Attorneys
D&A Tax & Notary Service
1580 Sawgrass Corporate Pkwy 130
Sunrise, FL 33323
(954) 297-8931
Attorneys Referral & Information Service
Greulich Margery
209 Palmetto St
Auburndale, FL 33823
(863) 583-8830
General Practice Attorneys, Attorneys
Labielle Investment Inc
1910 S State Road 7
Miramar, FL 33023
(954) 239-8548
Real Estate Attorneys
Michael B Manes PA
3080 NW 125th Way
Sunrise, FL 33323
(954) 530-8458
Discrimination & Civil Rights Law Attorneys, Attorneys
Patricia Dzikowski
1560 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(954) 331-8126
Bankruptcy Law Attorneys, Business Bankruptcy Law Attorneys
Schulefand Daniel M
1391 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(305) 372-8009
Criminal Law Attorneys, Attorneys, Legal Service Plans
Morland Linda J
165 W Green St
Englewood, FL 34223
(941) 475-7922
Probate Law Attorneys, Attorneys, Legal Service Plans
Berntsson Ittersagen Gunderson
1861 Placida Rd Ste 204
Englewood, FL 34223
(941) 474-7713
Estate Planning Attorneys,  Attorneys,  Business Law Attorneys,  Real Estate Attorneys,  Administrat
Dickinson Robert A
460 S Indiana Ave
Englewood, FL 34223
(941) 474-7600
General Practice Attorneys, Attorneys
Naughton, Michael P.A.
12058 San Jose Blvd
Jacksonville, FL 32223
(904) 886-7494
Wills, Trusts & Estate Planning Attorneys,  Family Law Attorneys,  Divorce Attorneys,  Elder Law At
Jones, Gordon
12058 San Jose Blvd
Jacksonville, FL 32223
(904) 262-7373
Civil Litigation & Trial Law Attorneys, Attorneys
Yvette J. Harrell Esq.
1371 Sawgrass Corporate Pkwy
Sunrise, FL 33323
(954) 990-7328
Attorneys, Family Law Attorneys
Achen Law Firm LLC
P.O. Box 18922
Pensacola, FL 32523
(850) 497-6620
Attorneys, International Law Attorneys, Business Law Attorneys, Contract Law Attorneys, General Prac
Abrams Michael L
121 S 61st Ter # A
Hollywood, FL 33023
(954) 961-5600
Personal Injury Law Attorneys
12Law.com   |  NASHVILLE, TN USA   |  CONTACT US