Bankruptcy provides a lifeline to people and companies experiencing financial difficulties. It is a legal term that defines a situation where you find it impossible to release you from the liability for the debts.
The Bankruptcy laws are created with the purpose to help the individuals and businesses obtain relief when being faced with difficult or overwhelming financial situations. There a re different types of bankruptcies and each are referred to by a Chapter. The most common in Florida are Chapter 7 and 13 which are mainly used by consumers or individuals seeking to obtain debt relief. There’s also Chapter 11 bankruptcy wich is used by corporations or individuals with substantial assets and income for purposes of reorganizing theird debts with their creditors.
A bankruptcy case begins with the by filing of a Bankruptcy petition with the bankruptcy court. In the case of a chapter 7 or chapter 13 bankruptcy, the Debtor, the person or business filing for bankruptcy will attend a meeting of creditors wherein a bankruptcy Trustee and not a Judge will confirm the Debtor’s identity and ask a series of questions regarding the Bankruptcy. Allthough all creditors are notified of the meeting, they rarely attend. An experienced Bankruptcy attorney that regularly practices in the area where your bankruptcy is filed can ease your concerns and answer all questions regarding the process.
People file for Bankruptcy for different reasons. Some experience financial difficulties to medical issues, having to support a family member, loss of work or reduction in hours, investments that didn’t work out, inability to work, and legal related issues such as lawsuits, judgments, wage garnishments, foreclosure actions, and vehicle repossessions.
Each type of Bankruptcy has different norms & procedures. An experienced bankruptcy attorney will determine you religibility for bankruptcy protection, advice you whether Bankruptcy is right for you and which chapter is best, and walk you through the entire process. The whole idea behind providing Bankruptcy help to the debtor is to help them make a fresh start. Chapter 7 is the most common type of bankruptcy. Chapter 13 can be a great resource for individuals seeking to modify their mortgages, catch up on secured payments such a association fees and mortgage payments or who have assets.
Filing Costs: For a Bankruptcy, the federal filing is $335 for Chapter 7 and $310 for Chapter 13.
Attorney’s fees: Stiberman Law is committed to charging a reasonable attorneys fees for filing bankruptcy with an attorney and payment plans are usually available.