Written By: Attorney Robert Stiberman| Updated 4/20/2023
North Sarasota, FL Bankruptcy Attorney Robert Stiberman
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5.05.05.0Considering filing for bankruptcy in Sarasota, Florida, can be daunting. With rising debts and financial strain, it’s important to know that bankruptcy is a viable debt relief option. If you’re considering taking this route, our team at Stiberman Law, P.A. is here to help you navigate this complex process.
Understanding the importance of legal assistance is crucial. With professional guidance, the process can become manageable. So, to help you out, we offer initial consultations to go over your financial needs and provide personalized advice.
This article aims to inform you about your options and how our experienced Sarasota bankruptcy attorneys can assist you. With over twenty years of experience handling bankruptcy cases, we strive to offer experienced and compassionate services for our clients. You can find more information on our website under Practice Areas.
We encourage you to schedule a free consultation today. Let us help you take the first step towards financial freedom.
According to Cornell Law School, “bankruptcy law provides for the reduction or elimination of certain debts, and can provide a timeline for the repayment of nondischargeable debts over time. It also permits individuals and organizations to repay secured debt.” Moreover, there are several types of bankruptcies, but we’ll focus on three.
Chapter 7 bankruptcy, known as liquidation bankruptcy, involves selling a debtor’s non-exempt assets to repay creditors. Capter 7 provides a fresh start by eliminating most unsecured debts. Additionally, according to US Courts, Chapter 7 “provides for ‘liquidation’—the sale of a debtor’s non-exempt property and the distribution of the proceeds to creditors.”
To qualify, individuals are required to do a means test, as noted on Debt.org, to determine if they’re “elegible for Chapter 7 bankruptcy.” This test determines whether their income is below the state median.
The process includes filing a petition, attending a meeting of creditors, and then waiting for discharge, which takes about 3-4 months after filing.
You can find more information on our website under What Is Chapter 7 Bankruptcy?
Chapter 13, also known as reorganization bankruptcy, permits debtors to keep property and pay over time, usually three to five years.
Debtors come up with a repayment plan and make installment payments to creditors, which needs to be approved by the court. According to US Courts, “any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief as long as the individual’s combined total secured and unsecured debts are less than $2,750,000 as of the date of filing for bankruptcy relief.”
More information is available on our website under Chapter 13 Bankruptcy Attorney.
Chapter 11 bankruptcy, primarily used by businesses, allows for reorganization and continued operation under a court-approved plan. “People in business or individuals can also seek relief in chapter 11,” as noted by US Courts. Moreover, unlike Chapter 7, it doesn’t involve liquidating all assets.
With this chapter, debtors propose a reorganization plan, which the court and creditors should confirm. Moreover, as noted by the Internal Revenue Service (IRS), “failure to successfully reorganize and get a debt repayment plan approved may result in a Chapter 11 case being converted to a liquidating Chapter 7.”
For more information about Chapter 11 Bankruptcy, please refer to our website.
It’s okay to have questions before filing for bankruptcy. Though it can be an opportunity for debtors to start anew, it can also be a process riddled with doubts. Here are a few questions that might help you make an informed decision.
How will bankruptcy affect my credit score?
Filing for bankruptcy can impact your credit score between 100 and 200 points, according to Debt.org. A Chapter 7 bankruptcy remains on your credit report for 7 to 10 years, while Chapter 13 remains for seven years. It’s important to work on rebuilding your credit after your case is complete.
What assets can I keep if I file for bankruptcy?
According to the US Courts, “the Bankruptcy Code will allow the debtor to keep certain ‘exempt’ property; but a trustee will liquidate the debtor’s remaining assets.” So, in some cases, people can keep essential assets like their home, car, and personal belongings. This depends on state-specific exemptions and whether you file for Chapter 7 or Chapter 13. The liquidation of non-exempt assets may be required to pay creditors. 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?
A Chapter 7 bankruptcy typically takes about 4-6 months from filing to discharge, while a Chapter 13 bankruptcy can last 3-5 years. This varies according to the complexity of the case and court schedules.
Where can I file for bankruptcy?
Bankruptcy cases should be filed in designated courts. Each of the 94 federal judicial districts can handle bankruptcy cases. You can find more information about bankruptcy courts, including a court finder, on the official Bankruptcy Courts website.
Do I need a bankruptcy attorney?
While hiring an attorney is not mandatory, it is highly recommended, even by US Courts. An experienced attorney can help you understand this complex process, ensure your paperwork is correctly filed, and represent you in court if necessary.
Hiring a knowledgeable bankruptcy attorney is crucial for anyone facing financial difficulties. An skilled attorney can provide the guidance needed to navigate the complex bankruptcy process.
The experience of a bankruptcy attorney can help you ensure that you follow all legal procedures accurately. For example, bankruptcy attorneys can help you gather necessary documents, file required forms, and represent you in court. They handle communications with creditors and aim to protect our assets.
As noted by Debt.org, “According to Ed Flynn of the American Bankruptcy Institute, lawyers represented consumers in 91.5% of the 486,347 Chapter 7 cases filed in 2017. Lawyers had their clients’ debt discharged – meaning eliminated – in 96.2% of the cases.” Moreover, “by contrast, people who represented themselves in Chapter 7 bankruptcy cases were successful just 66.7% of the time.”
At Stiberman Law, P.A., we understand that facing financial difficulties can be stressful. Our team is prepared to help you navigate through bankruptcy, and we’re prepared to assist clients by providing clear guidance and effective solutions tailored to our specific needs.
We offer various services, including initial consultation, planning, and post-bankruptcy support. Our main focus is on providing personalized service. We listen to your needs and tailor our solutions to fit your unique situation. Choosing us means choosing a compassionate and reliable partner in your financial journey.
If you’re considering bankruptcy, we’re here to help. We believe that contacting a professional can be the first step toward financial recovery.
Contact us today and schedule a free consultation. We’re ready to discuss your financial situation and look forward to helping you reach financial stability.
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.
