Written By: Attorney Robert Stiberman| Updated 4/20/2023
Lakeland, FL Bankruptcy Attorney Robert Stiberman
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5.05.05.0Facing financial trouble can be overwhelming, especially when it feels like there’s no way out. As shared by the US Courts, bankruptcy is a legal way to relieve some or all of your debts and start anew, offering potential paths to financial recovery. Moreover, choosing the right bankruptcy attorney in Lakeland can make all the difference as you navigate this complex process.
But why is professional legal guidance crucial in debt relief cases?
Without it, you might miss critical steps or misunderstand key aspects of your case, leading to delays or even dismissals.
We at Stiberman Law, P.A., are ready to assist Lakeland residents with our extensive experience in bankruptcy law. We aim to help you protect your assets and secure a fresh financial start. With our proven knowledge and over twenty years of experience handling bankruptcy cases, you will walk through the process with confidence and clarity.
Schedule a free consultation today, and let us help you on your way to financial recovery.
According to US Courts, “bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses.” Additionally, bankruptcy offers different chapters based on individual circumstances. Here’s a quick look at the three types of bankruptcy we at Stiberman Law, P.A. have experience working on:
Chapter 7 bankruptcy, often called “liquidation” bankruptcy, involves selling non-exempt assets to repay debts. To qualify, debtors are required to pass a “means test” to ensure their income is below a certain level; more information about the means test is available at Debt.org and the US Department of Justice.
Moreover, Chapter 7 usually takes about 4 to 6 months. Benefits include a fresh start and the discharge of most debts. However, debtors may lose property.
You can find more information, including what type of debts you can discharge using Chapter 7, on our website under What is Chapter 7 Bankruptcy? Qualifications and How to File.
According to US Courts, Chapter 11 bankruptcy is mainly for businesses struggling with debt. However, individuals with substantial debt can also file. As shared by the Internal Revenue Service (IRS), The process involves reorganizing debt and creating a repayment plan. While it allows businesses to continue operating, it’s complex and expensive.
Moreover, as US courts have noted, “businesses may file bankruptcy under Chapter 7 to liquidate or Chapter 11 to reorganize.”
On our website, you can also find more information about Chapter 11 and how it works.
This type of bankruptcy can help those with a steady income but high debt. Chapter 13 bankruptcy allows for debt reorganization and repayment over 3 to 5 years. Unlike Chapter 7, it often helps to keep your property, including your home. According to Debt.org, “in a Chapter 13 bankruptcy, you keep everything—all your property—under a court-approved debt reorganization plan.”
Eligibility includes having regular income and meeting debt limits. The process is less disruptive, making it suitable for those wanting to avoid foreclosure.
More information is available on our website under Chapter 13 bankruptcy.
Additionally, the IRS website provides more details about these three types of bankruptcy, including a comparative chart.
Filing for bankruptcy can be challenging but can provide a new beginning for those struggling with debt. At Stiberman Law, P.A., we’re prepared to help you during the process. Here’s an overview of how to file for bankruptcy in Lakeland, Florida:
Steps of Filing for Bankruptcy
First, you should decide which chapter to file.
Complete credit counseling (CC) 180 days before filing for bankruptcy. According to the US Department of Justice, “Credit counseling (CC) must be obtained before an individual files for bankruptcy, subject to limited exceptions.” On the US Department of Justice website, you can find a list of Credit Counseling Agencies Approved under 11 USC § 111, where you can search for an agency near you.
Then, you can file the petition, which includes a list of assets, income, debts, and living expenses.
To file for bankruptcy, you need to gather specific documentation:
According to Cornell Law School, a “bankruptcy trustee is an administrator appointed by the court to oversee the debtor’s estate in a bankruptcy proceeding. The trustee can evaluate and make recommendations about various debtor demands, but cannot act without approval of the court.” Moreover, they conduct a meeting of creditors where debtors are required to answer questions about their finances.
In a Chapter 7 filing, the trustee sells non-exempt assets to pay creditors. For Chapter 13, they oversee the repayment plan.
What impact will bankruptcy have on your credit score?
According to Debt.org, filing for bankruptcy can lower our credit score by between 100 and 200 points. Additionally, it may stay on our credit report for up to 10 years, making it harder to get loans or credit in the future.
Can you keep your assets if you file for bankruptcy?
It depends on the type of bankruptcy you choose. Under Chapter 7, you might have to liquidate some assets. Chapter 13 allows you to keep your assets but requires a repayment plan. For more information, refer to the following article on bankruptcy exemptions by Debt.org or to our Practice Areas.
How long does the bankruptcy process take?
The duration varies. A Chapter 7 bankruptcy typically takes about 4-6 months from filing to discharge, while a Chapter 13 bankruptcy can last 3-5 years.
Will all your debts be discharged in bankruptcy?
“Not all debts are discharged,” as noted by the US Courts. “The debts discharged vary under each chapter of the Bankruptcy Code.” Common exceptions include student loans, child support, and some taxes. You can find more information on the US Courts website under bankruptcy basics.
Can you file for bankruptcy more than once?
Yes, but there are time limits. For example, according to the Bankruptcy Code, You are required to wait eight years to file again for Chapter 7. Time varies if you first filed for one type of Chapter and then want to file for another. Please refer to the following article about multiple bankruptcies shared by Debt.org for more information.
At Stiberman Law, P.A., our team has extensive experience in bankruptcy law. As noted in our Practice Areas, we have experience handling debt consolidation, wage garnishment lawsuits, foreclosure issues, and Chapter 7, Chapter 11, and Chapter 13 cases. We understand that each client’s situation is unique, so why we tailor our services to meet individual needs. Whether you’re an individual or a business, we create personalized legal strategies to help achieve favorable outcomes.
Our commitment to compassionate and supportive legal services sets us apart. We know that the bankruptcy process can be stressful, and our team is here to guide you every step of the way and ensure that you feel supported.
Additionally, we are dedicated to providing clear communication and professional service. Our experience and knowledge enable us to handle even the most complex bankruptcy cases effectively.
We encourage you to contact us for a free consultation. Take the first step towards financial relief, and let us help you navigate any financial challenges you might have.
Speaking to our law firm is always 100% confidential. We do our best to respond to inquiries in under 24 hours.
We’ll get in touch as soon as possible.
