What Exactly Does Bankruptcy Mean In Florida?
Bankruptcy is a legal proceeding wherein an individual or a business that has failed to pay his, her, or its bills seeks out a new financial start. Bankruptcy is a complicated ordeal and should only be considered with expert guidance from a bankruptcy attorney in Fort Lauderdale, FL. Federal law governs the bankruptcy process; all bankruptcy cases are handled in federal court. Most importantly, filing bankruptcy can stop creditors from trying to collect debts from you.
What Are The Types Of Bankruptcy?
There are four chapters of bankruptcy, all of which should be discussed with your Fort Lauderdale, FL bankruptcy attorney:
- Chapter 7 Bankruptcy: Requires you to give up any of your property that exceeds certain limits, called exemptions. Such property will then be sold to pay off your creditors.
- Chapter 11 Bankruptcy: Known as reorganization bankruptcy, this chapter is mostly utilized by businesses and individual debtors who have very large amounts of debt.
- Chapter 12 Bankruptcy: Reserved for family farmers.
- Chapter 13 Bankruptcy: Known as a debt adjustment bankruptcy, this chapter requires your Fort Lauderdale, FL bankruptcy attorney to file a plan to repay your debts using your current level of income for court approval.
Most individuals and couples who seek to file bankruptcy will be required to file either chapter 7 or chapter 13. It is very important to consult an experienced bankruptcy attorney before attempting to file any type of bankruptcy in Fort Lauderdale, Florida.
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Can Filing Bankruptcy In Florida Really Make My Life Easier?
Filing bankruptcy in Fort Lauderdale, FL with the expertise of a skilled bankruptcy attorney can provide multiple new options when it comes to handling your debt, including:
- Freeing you from the obligation of paying some of your debts through discharge.
- Halting the foreclosure process on your mortgage.
- Preventing the repossession of your personal property, such as a vehicle.
- Forcing a creditor to return any repossessed property.
- Stopping wage garnishments against you.
- Restoring your shut off utility services.
- Challenging the claims of any creditors who may have used fraudulent tactics.
Is There Anything Bankruptcy Can’t Fix In Fort Lauderdale, FL?
Bankruptcy is not the only solution or the best solution for all financial problems. A highly knowledgeable bankruptcy attorney must be consulted before you even consider filing a bankruptcy action in Fort Lauderdale, FL. While bankruptcy is considered a drastic step, there are certain actions that cannot be taken even within it. Bankruptcy cannot:
- Eliminate the rights of a secured creditor. A secured debt is attached to collateral. You may be able to force a secured creditor to accept repayment through payments over time with the bankruptcy process, but you cannot keep collateral without paying on the debt.
- Discharge special debts, including child support, alimony, student loans, criminal fines, and taxes.
- Discharge debts for your loan’s cosigners. If you discharge a loan in your bankruptcy, your cosigners might very well still have to repay the loan.
- Discharge debts that were created after you filed bankruptcy.