It is not uncommon to see people getting into debt. Debt, though agonizing, is not unmanageable. By taking some prudent steps they can be cleared, and those indebted can put their financial standing back in order, provided there is a foreseeable income coming in. In some scenarios this is not possible however. The reasons may be, the debts are too large for the affected to handle or simply the person may be unable to stand harassment any longer. Pondering over the problem and delaying action only adds to woes. For people like these, the best solution is to seek legal redress by filing a bankruptcy proceeding before a competent court.
Filing a bankruptcy proceeding in a competent court – a Federal Court in Florida for example, ensures immediate protection from creditors taking charge over the filer’s properties. The other reliefs they get include, protection from creditors trying to take repossession, stopping utility companies from discontinuing services, foreclosure of loan by lenders, elimination of liens in some cases or modifications to repayment schedules and even exemption from paying unpaid accident claims awarded by courts. If you are one of those affected by unmanageable debts and live in Florida, then, you should hire one of the bankruptcy lawyers in Florida immediately.
When you file for bankruptcy proceeding, the first relief you get is an automatic stay, and it binds everyone who have a stake in it. Typically, due process takes about 3 month to be completed before the filer is finally discharged from all obligations. There are two chapters under which bankruptcy proceeding is filed – Chapter 7 and Chapter 13.
When you apply for bankruptcy under Chapter 7, also known as ‘straight’ or ‘liquidation,’ all creditors, including credit card companies, lawsuit plaintiffs and doctors, and others are barred from recouping their money from you directly. It is total and you can start afresh from scratch. But, before the court finally discharges you, it will apply the means test to check if you are acting in good faith. An income lower than the state median for 6 months preceding application, presumes you are acting in good faith; otherwise the court will examine your application at greater depths before deciding.
Chapter 13 is radically different as compared with Chapter 7. It is more about reorganizing the applicant’s finances. Typically, the courts will allow anywhere between 3 and 5 years for the filer to repay debts based on present income levels and what can be apportioned to meet debts. Usually the court draws an action plan to which every stake holder will be obliged to abide. Though the provisions of Chapter 7 and Chapter 13 of the law of bankruptcy appear to be transparent, there are subtle nuances to getting relief under them. Bankruptcy lawyers in Florida can advice you on what is best for you.
Majority of applicants in Florida file for bankruptcy under Chapter 7, though it is the prerogative of the courts to entertain or to issue a directive to be taken up under Chapter 13. The biggest advantage of Chapter 13 is you can retain the titles to your assets, but you must prove you ability to service the debts as directed by it.
By Westfrisco from Pixabay