An unexpected illness or injury, the loss of a job, or the death of a loved one are all reasons why some people find themselves unable to meet their financial obligations. But, no matter the reason, being unable to pay your bills can cause undue stress, especially when a debtor sues you to collect the amount they are owed. When this happens, you may feel overwhelmed and unsure of what steps you should take. It is in your best interest to speak with a Florida bankruptcy attorney at a time like this. Together, you can develop a plan that addresses your financial concerns and brings you peace of mind.
How Can A Florida Bankruptcy Attorney Help Me?
A Florida bankruptcy attorney will meet with you and determine your amount and types of debt, as well as your ability to pay your debt and your desired outcome. With this information, your attorney will advise you on the type of bankruptcy filing that will best meet your needs. The first step to begin this process is to schedule a consultation with a law office with experience and a proven track record of helping others in similar situations.
What Are The Different Types of Bankruptcy Filings?
There are four types of bankruptcy filings a person unable to meet their financial obligations may consider. The important thing to remember is a bankruptcy filing halts any proceeding initiated against you by debt collectors. Instead, the debt is dealt with through the bankruptcy process. Following are the four types of bankruptcy filings:
- Chapter 7 Bankruptcy: This type of bankruptcy filing will enable a debtor to discharge, or get rid of, any unsecured debt, such as credit cards. Although Chapter 7 is referred to as “liquidation” bankruptcy, in most cases you will be able to keep all or most of your assets. Chapter 7 allows a debtor to have a fresh start and is often the best choice for a struggling debtor.
- Chapter 11 Bankruptcy: Most chapter 11 bankruptcy filings involve corporate structures as many businesses view it as a way to reorganize. An individual with a large amount of disposable income and significant debt can also file a chapter 11 when the other types of flings are not beneficial to their situation.
- Chapter 12 Bankruptcy: A chapter 12 filing is exclusively for farmers and fishermen.
- Chapter 13 Bankruptcy: A debtor is not required to turn over any assets in a chapter 13, which makes it a popular option with many debtors. It also allows a debtor to stop a foreclosure or modify the mortgage on their home. However, the debtor will be required to make plan payments to a Trustee to pay a portion of their unsecured debt based on their disposable income.
Speak With A Skilled Florida Bankruptcy Attorney
If you find yourself in a position where debtors are suing you due to your inability to pay your financial obligations, speak with a skilled Florida bankruptcy attorney. Martin Law Firm, P.L., has served thousands in similar situations, and with four convenient locations located across Florida, meeting with us is easy. You may contact us by calling 1-239-323-9820 or via our contact page.