Bankruptcy is a legal process that provides financial relief to individuals and businesses by enabling them to repay their debt more easily through a court-approved repayment plan or by eliminating their debt obligations. The process is complex and time-consuming and has a long-term impact on your credit, but if you’ve been struggling with debt, filing for bankruptcy can be an effective way to get a fresh start.
Working with an experienced bankruptcy attorney makes most legal processes considerably more straightforward, and bankruptcy is no exception. Contact Loan Lawyers today to speak with a bankruptcy attorney in Fort Lauderdale about your options and learn more about the process for debt relief.
Chapter 7 Bankruptcy
There are two types of bankruptcy people are most likely to file: Chapter 7 and Chapter 13. While both offer relief to individuals struggling with their debt, they work in different ways and come with unique advantages and drawbacks.
Chapter 7 bankruptcy involves the liquidation of non-exempt assets to repay outstanding debt. An appointed federal court trustee oversees the sale, which may result in the loss of such property as vacation homes, additional cars, recreational vehicles, valuable collections (jewelry, luxury clothing, coins, stamps, fine art), family heirlooms, and other items. Proceeds from the sale are used to pay off creditors, and any remaining debts will be discharged.
Additionally, Chapter 7 bankruptcy is not an option for some types of debt, such as taxes, student loans, child support, and alimony payments.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy also involves working with a trustee, but the process is a bit different. In Chapter 13 proceedings, your trustee, your Fort Lauderdale bankruptcy lawyer, and the court will put together a three- to five-year repayment plan. The trustee will collect your monthly payments and distribute them to your creditors. Upon completing your payment plan, the rest of your debt will be discharged.
While the Chapter 13 process takes longer than Chapter 7, it also allows you to protect your assets. While you may decide to sell some assets to make payments after filing bankruptcy, it’s not a requirement.
What Is the Bankruptcy Process in Fort Lauderdale, FL?
The process of filing for bankruptcy in Fort Lauderdale is complex, and given the stress you’re likely already experiencing, it’s not a process you’ll want to attempt on your own. This is where your Ft Lauderdale bankruptcy attorney comes in. Your attorney will help you navigate the many bankruptcy proceedings involved in debt relief by handling or assisting with the following steps:
- Determining your eligibility
- Gathering financial records, tax returns, and other required documents for bankruptcy filings
- Filing your bankruptcy petition
- Accompanying you to your meeting with creditors
- Helping you complete your credit counseling course
- Accompanying you to your confirmation hearing (Chapter 13 only)
- Securing your bankruptcy discharge
Your bankruptcy lawyer is a crucial partner throughout your bankruptcy process. They’ll guide you every step of the way and strive to ensure the best possible financial solution available in Fort Lauderdale for your unique situation.
