Chapter 13 and Chapter 7 Bankruptcy Lawyer in Orlando, FL

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is often called the "Fresh Start" bankruptcy. Individuals can file for bankruptcy in a federal court under Chapter 7 (also referred to as "straight bankruptcy" or "liquidation") and are generally discharged of many types of unsecured debts such as credit cards, personal loans, medical bills, and some judgments. Filing a Chapter 7 bankruptcy puts into effect something called an "automatic stay," which immediately stops your creditors from trying to collect. As a result, creditors cannot garnish your wages, empty your bank account, or go after your car, your house, and your personal belongings. In a Chapter 7 bankruptcy, the individual is allowed to keep certain exempt property. Each state has its own set of exemptions and a qualified bankruptcy attorney will be able to outline the type of property that is exempt from liquidation in a Chapter 7. In most cases, all property is exempt and there is nothing for the bankruptcy trustee to liquidate. If you have any questions you should contact us for a Free No Obligation Legal Evaluation.

A wooden gavel and a rolled up constitution.

Is a Chapter 7 Bankruptcy Right For You?

If you are drowning in debt, and you feel as though there is no end in sight, bankruptcy may be the best option for you. The following are a few questions for you to consider: Are you struggling at the end of the month to pay your living expenses? Has your credit card debt become virtually unmanageable? Are you falling behind in paying on your personal loans and/or payday advances? If you answered "yes" to one or more of these questions, then Chapter 7 bankruptcy may be your best option.

Bankruptcy no longer has the personal stigma attached to it that was previously thought. Many people mistakenly believe that filing bankruptcy will ruin of their life. However, as clients begin to become educated with some of the real life outcomes of filing bankruptcy, many are pleasantly surprised that it is quite the opposite! By making on time payments on new debt incurred subsequent to your bankruptcy, you can regain your credit rating within a relatively short time from your discharge. Also without those high minimum payments, you can actually start to save money each month and prepare for your future instead of living month-to-month, paycheck-to-paycheck. To find out if you qualify for a Chapter 7 bankruptcy you should contact our experienced Bankruptcy Attorney for a Free No Obligation Legal Evaluation.

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is significantly different from a Chapter 7 Bankruptcy. A Chapter 13 is a reorganization of debt, allowing Debtors to repay all or a portion of their debts through a Chapter 13 plan while protecting property and personal assets.
The concept is similar to debt consolidation, but unlike most debt consolidation programs, it permits Debtors to pay unsecured debt (i.e. a debt that is not secured by property) pennies on the dollar without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors.

A group of people sitting around a table.

Typical Bankruptcy Plans

Under a typical plan, you make monthly payments to a court appointed bankruptcy trustee for generally three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. The bankruptcy trustee distributes the money to your creditors.

Under Florida bankruptcy law, the second mortgage can be stripped away if it is not secured by the value of the house. For example, if you have a first mortgage of $200k and a second mortgage for $100k and your house is only worth $200k, the second mortgage can be stripped away as a lien against your house.

A home for sale sign in front of a house.

Stop Foreclosure

Chapter 13 Bankruptcy will stop the foreclosure of you home and allow you to repay the payments you have missed. Under chapter 13, we will help you file a plan of repayment with the court. This repayment plan can be as long as 60 months.

The best kept secret of Chapter 13 bankruptcy is that it allows you to strip away a second mortgage from your home. Under Florida bankruptcy law, the second mortgage can be stripped away if it is not secured by the value of the house. For example, if you have a first mortgage of $200k and a second mortgage for $100k and your house is only worth $200k, the second mortgage can be stripped away as a lien against your house.

Auto Repossession

If you are facing the treat of repossession, we may be able to help you. An emergency bankruptcy filing can stop a creditor from repossessing your vehicle. Most borrowers are upside down on their vehicles. Under Chapter 13 Bankruptcy, you only have to pay back the current value of the vehicle if you have owned the vehicle for two and a half years. Remember that even one missed payment can result in the repossession of your vehicle.

If you have any questions, do not hesitate to call us for a free consultation at 321-945-4404.

Stop Wage Garnishment

Wage garnishment is a serious threat to your income. Most creditors will file a lawsuit against you and obtain a default judgment if you do not answer the complaint. The law firms that work for creditors are collection agencies that get paid a percentage of the collections. Under Florida law, they can order your employer to withhold 25% of your wages. Besides the financial strain, wage garnishment becomes a source of embarrassment for the employee. Once we file bankruptcy for you, the creditor will be stopped from taking any action against you.

If you have any question, please call for a free consultation at 321-945-4404.

Do's and Don'ts

The best thing you can do is to seek the assistance of an experienced bankruptcy attorney who will guide you through this complex area of the law. To obtain peace of mind, you should contact our experienced Bankruptcy Attorney for a Free No Obligation Legal Evaluation at 321-945-4404.

Bankruptcy mistakes...

Don't run up your credit cards prior to filing bankruptcy.

Don't buy luxury items prior to filing bankruptcy because luxury items purchased 70 days before bankruptcy cannot be discharged.

Don't use credit cards for cash advances seventy days before filing for bankruptcy.

Don't pay your relatives or friends before paying other creditors or transfer property into their names. The trustee may sue them to recover the money or property.

No one should face bankruptcy alone. To schedule a free initial consultation with our office call 321-945-4404. We are ready to help you.

Bankruptcy Frequently Asked Questions

1. What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?

Under Chapter 7 bankruptcy, the majority of your unsecured debts will be completely discharged. However, certain debts, referred as “secured debt” or “non-dischargeable debt,” cannot be discharged through bankruptcy. This type of debt includes child support, spousal support, student loans, tax debt, damages for personal injury accidents, etc. Furthermore, in exchange for eliminating your unsecured debt, the bankruptcy court may sell off some of your non-exempt assets and properties to back pay your creditors. That is why it is vital that your attorney know how to protet your belongings and assets with these exemptions provided in the Bankrutpcy Law.
Chapter 13 bankruptcy does not eliminate your unsecured debt, but rather consolidates all of your debt and restructures it into a monthly payment plan to be paid over a period of time, usually three to five years. The amount you pay each month will be determined by how much income you bring home each month, your currently monthly expenses, the amount of your non-exempt assets, and how much of your debt has already been paid off. In addition, Chapter 13 bankruptcy also permits you to keep all of your assets and property throughout the entire process, as well as possibly paying off only a portion of your debt and discharging the rest of the debt owed.

2. What debts are dischargeable during bankruptcy?

During the bankruptcy process, only unsecured debts can be discharged. These types of debts include debt from:
• Credit Cards
• Medical Bills
• Some Loans
• Unpaid Rent or Utilities
• Repossessions
• Consumer Debt
• Judgments
• Collections
• Pay Day Loans
Debts that cannot be discharged during bankruptcy are referred to as “secured debt” or “non-dischargeable debt,” and include:
• Student Loans
• Child Support
• Alimony/Spousal Support
• Tax Debt
• Debt to the government
• Debt for crimes committed
• Court Fines
• Damages to personal injury or wrongful death victims
• Parking Tickets or Toll way Fines Liens

3. Will my wages be garnished?

4. How long does a bankruptcy stay on my credit report?

A bankruptcy will appear on your credit report for anywhere from seven to 10 years after your case has been discharged. However, even though a bankruptcy appears on your credit report, it does not mean that you will not be able to obtain credit. There a many ways to build credit even after you have filed for bankruptcy, and my credit restoration will give you the best chance to recover and rebuild your credit as fast as possible.

5. How can I restore my credit after I’ve filed for bankruptcy?

There are many ways to rebuild or restore your credit after filing for bankruptcy. After you have filed for bankruptcy, it’s important to get a credit card or small bank loan in your name. From there you must make all of your monthly payments on time. If you can pay your bills earlier than the due date it’s even better. This will help increase your credit score and financial standing. Furthermore, continuing to make payments on-time toward your mortgage, car, or other household expenses will also help to build and restore your credit.

6. Does non-bankruptcy related credit consolidation work?

Nine out of ten non-bankruptcy consolidations fail, and many of these so called consolidations are outright financial scams. The reason most fail is because there is no law forcing all the creditors to enter into this consolidation agreement, nor force them to stop charging credit. Many people end up paying more money than their original plan called for. Additionally, your credit will not begin to recover until you make your final payment, which is on average 3-5 years after you begin the process. Bankruptcy on the other hand will help you recover and will force all creditors to adhere to the FEDERAL LAW.