Seminole Bankruptcy Lawyer
Contemplating bankruptcy is a stressful time in one's life. Financial obligations are spiraling out of control, creditors are constantly calling, and there can appear to be no end in sight. If you decide that personal bankruptcy is the right solution for you, the information below is a brief overview of the process you are facing.
Determining what relief you are eligible for
The bankruptcy laws became much more complex after the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, commonly referred to as BAPCPA. Most individuals will be eligible to file either Chapter 7 or Chapter 13, depending on their financial situation. Our office will conduct the required "Means Test" to determine which provision you qualify for.
Pre-Filing Financial Counseling
One of the reforms under BAPCPA is the requirement that a debtor undergo financial counseling prior to filing a bankruptcy petition. Our office can supply you with a list of court-approved counselors to ensure you comply with the law.
Automatic Stay from Creditor Contact
Once we file your bankruptcy petition, most creditors are prohibited from contacting you to collect upon pre-filing debt. Most legal actions are stayed as well. In each case, the creditors have to be properly notified.
Chapter 7 (Liquidation) Bankruptcy
If you meet the eligibility requirements, you may be permanently relieved from certain debt obligations. This includes most secured and unsecured debt. Any non-exempt assets will be liquidated to repay creditors. You are permitted to keep exempt assets, such as your home and retirement accounts. Certain debt is not dischargeable in bankruptcy regardless of which Chapter you file under. This includes student loan debt, some taxes, and domestic support obligations.
It is critical for you to know exactly which exemptions you are entitled to, otherwise you may be surrendering valuable assets unnecessarily. For this reason alone, hiring a competent attorney can pay for itself.
Chapter 13 (Payment Plan) Bankruptcy
If you do not qualify for Chapter 7 bankruptcy, or if you wish to repay a portion of your debt over time, you may be eligible to file for bankruptcy under Chapter 13.
Depending on your overall financial situation, including your ability to repay your debts, a Chapter 13 filing may be the appropriate plan. Under a Chapter 13 payment plan, you will be required to pay a percentage of your debts to your creditors over a period of time, usually between 3 and 5 years.
341 Creditor's Meeting
Once a bankruptcy petition has been filed, you will be required to attend a meeting of your creditors, commonly referred to as a 341 Meeting, before the U.S. Trustee.
At the 341 Meeting, your creditors will be given the opportunity to question you about your assets and your intention concerning those assets. For example, you may be given the opportunity to reaffirm a car loan so that you can keep the vehicle after your discharge is complete and continue to make the loan payments. Additionally, the U.S. Trustee will also inquire about your assets, liabilities, income, and expenses, and recent financial activities, in order to better understand your overall financial picture and to which determine which assets they can take from you to sell.
If you retain an attorney, they may be present with you at the 341 Meeting, however you must still personally attend the meeting.
Discharge
In a Chapter 7 proceeding, if all of your paperwork is in order and there are no issues or complications, your petition will be approved in a few months and certain debt will be forever discharged. At that point, you are formally relieved of those liabilities and you have your fresh start.
If you are scheduled to be on a payment plan under Chapter 13, the payment obligations will continue for the length of the plan. Failure to meet your obligations could result in reversing the discharged portion of your debt.
Conclusion
Hopefully, this brief overview has been helpful in providing an understanding of the bankruptcy process. Keep in mind that each case is different and your case may be ultimately prove to be substantially more complicated.
If you would like to schedule a free initial consultation to discuss your bankruptcy concerns with Colin A. Colgan, call us at 727.475.6680 or contact us online any time.
