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.

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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.

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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.

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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.

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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