Bankruptcy is a very good option for many people struggling with significant debt that they cannot repay. Although bankruptcy will stay on your credit report for some time, it also gives you a clean financial slate so you can make a fresh start.
Filing bankruptcy has the potential to become more complex than many people think. It’s not as simple as searching “bankruptcy attorney near me” or “bankruptcy attorney Hollywood” and calling the first lawyer you find.
Below, one of our Florida bankruptcy attorneys explains the most important things you should know about Chapter 7 and Chapter 13 bankruptcy if you are considering filing. Our Hollywood Chapter 7 bankruptcy lawyers can guide you down the right path.
How Does Chapter 7 Bankruptcy Work in Hollywood, Florida?
A Chapter 7 bankruptcy allows you to discharge most if not all of your unsecured debt. The process of filing Chapter 7 involves the following steps:
- Determine if you are eligible: Not everyone is eligible to file Chapter 7 bankruptcy. You will have to pass a means test, which is not easy. A Hollywood bankruptcy lawyer can help you determine if you are eligible, and if Chapter 7 is the right option for you.
- Consider appropriate exemptions: Part of the Chapter 7 process is selling your assets so the proceeds can be distributed among your creditors to cover a portion of your unpaid debt. Your lawyer can advise on which property you own that is exempt from being sold. For example, Florida law provides a very generous homestead exemption that can allow you to exempt the equity in your home.
- Submit the bankruptcy petition: Your bankruptcy case officially starts when you submit the bankruptcy petition to the court, essentially asking the court to grant you a discharge. Your lawyer will help you complete the petition and ensure it includes all the necessary information.
- The automatic stay: As soon as you file your bankruptcy petition, the bankruptcy court will issue an automatic stay. The automatic stay places a hold on any debt collection attempts, so creditors and debt collectors cannot contact you to try and recover the debt.
- The bankruptcy trustee: A bankruptcy trustee will be assigned to your case. The trustee will handle certain aspects, such as objecting to certain exemptions, meeting with the creditors, and informing the court of any status updates in your case.
- Adversary claims: Creditors have the right to file an adversary claim if they believe the debt they own is non-dischargeable or they believe the borrower has misused the bankruptcy process.
- The discharge: Lastly, any assets that were not exempt are sold by the bankruptcy trustee and the bankruptcy court will discharge any of your debt that is eligible.
How Does Chapter 13 Bankruptcy Work in Hollywood, FL?
Not everyone is eligible or wants to, file for Chapter 7 bankruptcy, so they file Chapter 13 bankruptcy.
Instead of discharging your debt so you are no longer responsible for it, your debt is reorganized into a payment plan.
The payment plans in Chapter 13 bankruptcy generally last from three to five years and while you are still responsible for the debt, it is much easier for you to repay.
Like Chapter 7, a Chapter 13 bankruptcy can protect you from Hollywood FL foreclosure, wage garnishments, and more.
The most important things to know about Chapter 13 bankruptcy are as follows:
- The automatic stay: The same type of automatic stay that is issued in Chapter 7 bankruptcy is also issued as soon as you file your petition for Chapter 13. Debt collection efforts must stop once the stay is issued and the stay can even cancel a foreclosure hearing that was already scheduled.
- Mortgage modification: You can force your mortgage lender to agree to a five-year repayment plan that will allow you to pay any missed payments. You do not have to apply for a loan modification and the bank must accept the repayment schedule. A bankruptcy trustee will oversee your case, including the mortgage modification.
- Eligibility: Just like Chapter 7, there are certain requirements one must meet before they can file Chapter 13 bankruptcy. Only individuals who live in the United States can file Chapter 13, so businesses are not eligible. Although there is no means test, there is a requirement that you must have a regular source of income. If you are filing jointly with your spouse, only one of you must have a regular source of income.
- Debt limits: You can only have a certain amount of debt to file Chapter 13 bankruptcy. Your unsecured debt, or the debt that does not have collateral attached to it, must not exceed $394,725. Your secured debt, or that which does have collateral attached to it, cannot exceed $1,184,200.
- Credit counseling: The bankruptcy courts do not want to grant you bankruptcy only to have you file again soon afterwards. To prevent this from happening, borrowers are required to complete two credit counseling courses. The first course must be completed no longer than 180 days after the petition was filed. Once the case has been filed with the court, the borrower may be required to take another course.
- Creating the repayment plan: You will likely want to include the smallest payments possible when creating your repayment plan, while your creditors will try to get the largest payments possible. It is critical to work with a Hollywood bankruptcy lawyer who can negotiate a fair and reasonable repayment plan.
- Filing the repayment plan: Once you have created a repayment plan, you must submit it to the bankruptcy court for approval. You must submit the repayment plan within 14 days of filing your case. It is important to work with a lawyer because if the court does not find that your plan is satisfactory, it can cause unnecessary delays and unintended consequences.
Talk With Our Hollywood Bankruptcy Lawyers Today
Considering filing for bankruptcy? Call the top-rated Fort Lauderdale bankruptcy attorney at Loan Lawyers.
Our Hollywood bankruptcy lawyers have helped thousands of people successfully discharge their debt, and we can guide you through the process and give you the best chance of success, too.
Call us now at (954) 523-4357 or contact us online to schedule a free review of your case.
What Our Clients Say
Rating: 5/5 ⭐⭐⭐⭐⭐
Read this 5-star Google review below regarding a bankruptcy case “If you are in financial distress and looking for an office that will help you towards the journey of bankruptcy filling please look no further. I knew nothing about bankruptcy and they were so patient with me. They explained everything to me and led me through each and every step. The trustee attempted to take my car as asset but they worked their magic and the trustee decided to take no further interest in my car which I’m beyond grateful for. The professionalism and on going communication and the ability to go above and beyond is why I recommend Loan Lawyers.” – Bee as seen on Google
Read more of our 317+ reviews on Google!
Related Services Near Hollywood, FL
CPAs
Raben Richard CPA
2130 Hollywood Blvd, Hollywood, FL 33020
(954) 922-5696
Mark A Bernstein CPA PA
2131 Hollywood Blvd, Hollywood, FL 33020
(954) 252-4955
Matthew S. Abrams, CPA
1930 Harrison St STE 306, Hollywood, FL 33020
(954) 404-6449
CFPs
Harris Mandler, CFP®, CLU® -Equitable Advisors
1 Financial Plaza Suite 1200, Fort Lauderdale, FL 33394
(954) 356-5505
Money Concepts
1930 Harrison St STE 202, Hollywood, FL 33020
(954) 929-9506
Edward Jones – Financial Advisor: Marcie Hibbs
1820 Radius Dr, Hollywood, FL 33020
(954) 922-1242
Insurance
Florida First Insurance Agency
2515 Hollywood Blvd #6606, Hollywood, FL 33020
(954) 929-6696
Preferred Choice Insurance Agency
2012 Hollywood Blvd suite d, Hollywood, FL 33020
(954) 773-9360
IGT Insurance Professionals
1946 Tyler St, Hollywood, FL 33020
(754) 260-5384
