We are a debt relief agency and attorneys. We help people file for bankruptcy relief under the Bankruptcy code.
There are two main types of bankruptcies for consumer debtors (as opposed to business debtors) Chapter 7 and Chapter 13. The following is a brief highlight of the different Chapters. However, you should contact our office for advice from partner, Colin Lloyd, for advice tailored to your particular situation.
Chapter 7: This is commonly referred to as a "liquidation." Normally, one's unsecured debt (i.e. credit cards, medical bills, certain taxes, repossessions, etc.) are discharged. "Discharged" essentially means that the creditor is forever barred from making any attempts to collect the debt. Thus, creditors cannot call, write or harass you any further. In addition, if you were being sued or garnished by an unsecured creditor, those lawsuits and garnishments would cease immediately upon filing the bankruptcy. In regards to secured debt, one may keep the secured property(house, cars, etc) as long as hey continue to make the payments. However, it is important to keep in mind that if you are behind on your mortgage, car payment, or other secured debt, a Chapter 7 bankruptcy will not save your home or car from foreclosure or repossession indefinitely. In regards to assets, one is allowed to keep certain property under Florida exemption law. Because the exemption laws and bankruptcy laws are complex and lengthy, we encourage you to contact our office immediately for advice particularly tailored to your legal circumstances.
Chapter 13: This is commonly referred to as a reorganization. This type of bankruptcy is most commonly used by people who are behind on their mortgage and/or car payments or who do not want to file a Chapter 7, because they would be forced to turn over certain assets to the Court. This type of bankruptcy allows one up to five years to make up missed mortgage payments without interest. Many people who have faced foreclosure have saved their home by filing a Chapter 13. There are also provisions for dramatically lowering car payments and debts to the IRS and other unsecured creditors. There are many other benefits which are too numerous to list in this brief description. Thus, you should contact our office immediately for advice particularly tailored to your legal circumstances.
Business Bankruptcies: Please contact Colin V. Lloyd, Esq. should you have concerns regarding a potential business bankruptcy.