If you feel like you are buried in debt and will never be able to dig your way out, bankruptcy may provide you the relief you need and give you a fresh start in your financial life. One-size-does-not-fit-all in bankruptcy litigation. There are different types of bankruptcy proceedings and which one is the best option for you depends on your specific circumstances. A Southwest Florida bankruptcy litigation attorney will help you decide
Overview of Chapter 7 bankruptcy
Depending on the nature of your debt and your income, Chapter 7 bankruptcy may be the answer for you. You attorney will help you with your state’s means test to evaluate your income and look at your type of debt to determine if this process will provide you the relief you need. Debts that will be discharged at the end of the process, meaning you will no longer owe them, include:
- Back rent and utilities.
- Credit card debt.
- Deficiency balances from any repossession, for example your car.
- Medical and hospital bills.
- Personal loans.
- Unsecured credit of all types.
There are some debts you will still owe even after the discharge. For example, you will still owe back taxes that are less than three years old, past due alimony and child support and other categories of debt.
Overview of Chapter 13 bankruptcy
This is for you if you are underwater with your debt, but have enough income to pay it back providing you can restructure it. You will file a petition for bankruptcy along with a list of all of your debts and your income. You make a proposal to the court of how you could keep current with your debts, such as your mortgage and your car, and still make a payment on your debts that are in arrears.
If the court accepts your plan, you will make one payment for the debts that are in arrears to the bankruptcy trustee who will parcel it out to your debtors. Plans usually take three to five years. If you comply with all the terms of your plan, at the end of the period, the court will discharge any remaining debt.
Call Champeau Law
At Champeau Law, we have more than 13 years of experience aggressively assisting debtors and creditors in asserting and defending claims in complex bankruptcy litigation. We work in the Federal Bankruptcy Court in the Middle District of Florida. Contact us for assistance.