Here are some frequently asked questions about bankruptcy in Florida, if you have any other questions don’t hesitate to contact me any time at (321) 206-5193.

 

NEW FOR 2014. Call for your free consultation!

  • If you file bankruptcy prior to filing and receiving your income tax refund. More than likely, the Trustee will try to take a portion, or all of it. Trustees are enforcing this more than ever!
  • If you own a home, and owe more than is worth, some trustees are not allowing you to use the wildcard exemption, as it was allowed in the previous years.
  • If your car is paid off, it needs to be properly appraised. Trustees are not accepting dealer appraisals as the true value of the vehicle. If the appraisal on the car is questionable, the Trustee more than  likely will object to it.

General facts about personal Bankruptcy

 Chapter 7 bankruptcy allows you to:

  • Protect your home and personal assets
  • Eliminate credit card debt
  • Stop creditor calls and harassment
  • Permanently erase old I.R.S. debt (3 yrs or older)
  • The stigmas that Bankruptcy ruins your credit are not true. Your credit is damaged by late payments and collection agencies that report your unpaid debt.
  • Bankruptcy gives you a fresh start by allowing you to retake control of your finances.
  • The initial consultation is completely free!

We also work with Chapter 7 business bankruptcies and Chapter 13 as well.

 Frequently asked questions for Chapter 7 bankruptcy:

  • Will filing bankruptcy ruin my credit?

A: The stigma that Bankruptcy ruins your credit is not true. Your credit is damaged by late payments and collection agencies that report your unpaid debt. In most cases, your credit will drop 100-115 points when you file for bankruptcy, but it will recover as time goes by.

  • Will I lose my house if I file for bankruptcy?

A: In most cases, you can keep your house as long as you are current with your mortgage. If you went through modification, you can also reaffirm the debt as it was under the modification. If your house is paid off, you can protect it under homestead exemption.

  • Can I keep my car?

A: In most cases you have an exemption of $1,000.00 for your vehicle. You can use additional exemptions to keep your car, as long as is not worth more than $4,000.00. If the car is being financed, you can reaffirm the debt and keep making payments on the car.

  • I just got served with a civil lawsuit. Can bankruptcy help me to avoid being sued?

A: if the lawsuit is related to a debt, in most cases bankruptcy will stop the lawsuit and the debt will be discharged.

  • I have a lot of credit card debt; will bankruptcy allow me to discharge it?

 A: Yes, if you have credit card debt the court considers credit card debt as “unsecured.” Unsecured debt is discharged under Chapter 7 as long as the debt was not incurred by fraud or deception.

  • What is the meeting of creditors?

A: The meeting of creditors is an administrative proceeding where a trustee designated by the court inquires about the debtor’s assets and reasons to file bankruptcy. In most cases, this meeting does not take more than ten minutes. However, if the trustee feels or think the debtor is not being truthful, or has assets that are not exempted this meeting could take longer.

Frequently asked questions for Chapter 13 bankruptcy:

  • What is the difference between Chapter 7 and Chapter 13 Bankruptcy?

A: Chapter 7 is more simple and faster than Chapter 13. Chapter 13 is the alternative in case you surpass the means test for Chapter 7.

  • I would like to keep my house, but I have two mortgages. What can Chapter 13 do for me in this case?

A: If you have two mortgages and the value of the house is less than the two mortgages combined. We can request to the court to STRIP the second mortgages. We can also force the bank to negotiate the balance for the first mortgage or modify payments in order to you to keep the house.

  • Why is Chapter 13 more expensive, and takes longer?

A: Chapter 13 requires more work and time from the attorney. Also, it takes longer because the court has to review the proposed payment plan and approve it.

  • What if after I file Chapter 13 my financial situation changes?

A: If your financial situation improves, your monthly payment to the trustee can increase accordingly. However, if you financial situation changes negatively or you lose your job, you might be able to convert your Chapter 13 to a Chapter 7.

In general, bankruptcy allows you to:

  • Eliminate credit card debt
  • Stop creditor calls and harassment
  • Permanently erase old I.R.S. debt (3 yrs or older)
  • Bankruptcy gives you a fresh start by allowing you to retake control of your finances.
  • The initial consultation is completely free!
We also work with Chapter 7 for businesses. Call for more details.