Bankruptcy

Filing for bankruptcy?

If you are seeking a Sarasota, Bradenton, Venice, or Arcadia bankruptcy lawyer to assist you in these difficult economic times, please contact us today to set up a free consultation.

The Common Reasons for a Consumer Bankruptcy

What is Bankruptcy
Bankruptcy is a legal proceeding in federal court where a "debtor", who cannot pay his bills for a variety of reasons, can get a fresh financial beginning. Filing bankruptcy immediately stops creditors from their attempts to collect a debt from the debtor, until the bankruptcy court handles the case through Chapter 7 or Chapter 13 of the bankruptcy code.

Chapter 7 Bankruptcy
Chapter 7 is known as a "straight" or "liquidation" bankruptcy. The debtor will provide the court with a list of all assets and income verification. This procedure is available for debtors who qualify under the median income level. It requires the debtor to give up certain valuable property, which is not "exempt" under the law, to pay off creditors. You get to keep property that is "exempt" but the trustee may sell all "non-exempt" property to pay off creditors. At the end of the case, typically within ninety days, your debts will be discharged.

Chapter 13 Bankruptcy
Chapter 13 is a type of "reorganization" used by individuals to pay all or a portion of their debts over a period of three to five years. The debtor is allowed to keep his property. Debtors facing a home foreclosure would benefit from a Chapter 13 bankruptcy, and the filing of a bankruptcy petition will immediately stop a foreclosure proceeding in State court. The debtor will need to have enough income during the case to pay for life’s necessities, and to keep up with the required payments as they come due.

The information provided on this site is not intended to be used as legal advice. You should consult and attorney for a detailed analysis of your financial situation.

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