Bankruptcy Attorney In Tallahassee Florida
Bankruptcy impacts your financial future. While it can be a wise decision in the right circumstances, bankruptcy is not a simple process. It requires planning and thought before you take any action. For the proper planning, it is best to find a quality bankruptcy attorney in Tallahassee Florida. Bruner Wright, a trusted attorney, can help you understand your options and the consequences.
Initial consultations are always free. Call us at 850-385-0342 to set up an appointment.
You are not the only one considering bankruptcy, particularly in times of economic hardship such as the COVID-19 pandemic. Each year, thousands file for bankruptcy in Florida. In 2020, 18,797 people filed for Chapter 7 bankruptcy within the North Florida Area.
What Are The Different Chapters Of Bankruptcy?
The two most common types of personal bankruptcy in Florida are Chapter 7 and Chapter 13. These two types of bankruptcy are quite different, so you need to decide which one is best for your financial situation.
Chapter 7 Bankruptcy: This is also known as “liquidation” and “straight” bankruptcy. It basically converts your most current assets into cash. These assets will typically be sold by a court-appointed trustee and the proceeds used to repay your creditors partially or fully. If the bankruptcy process is smooth, you may be able to get your debts discharged (canceled), in as little as 90-days.
Your property can’t all be converted to Chapter 7. You may be able to protect some of your property through bankruptcy exemption. These include your retirement account or inexpensive property such as clothing and tools. The majority of Chapter 7 cases are “no asset” cases. This means that there are no exempt items to liquidate. In other words, the filing party does not need to sell anything in order to obtain a discharge.
Chapter 7 is for people who are willing to admit to the court they are insolvent or unable to pay their debts. This is also a good option for people with low incomes and few assets as it will leave you little to ‘give up.
Chapter 11 Bankruptcy: Chapter 11 bankruptcy is only available to businesses and this type of bankruptcy is known as rehabilitation or reorganization bankruptcy. This type of bankruptcy is one of the most complex forms and one of the most expensive forms of bankruptcy. Corporations, joint ventures, limited liability companies, and partnerships can all qualify for Chapter 11 bankruptcy. Under a Chapter 11 bankruptcy, it’s possible to reorganize the debt of the company to seek a method of repayment over time.
Unlike a chapter 7 bankruptcy, a Chapter 11 bankruptcy insurer of the business can continue its operations. Chapter 11 bankruptcy is most often used by businesses because it can give the business the chance to continue its operations. Under a Chapter 11 bankruptcy, the business will remain open and continue to take initiatives to stabilize the finances and settle debts. This can often involve selling off assets, cutting expenses for the company, negotiating debts with creditors, and working under court supervision to determine the best path for the repayment of debt.
Chapter 13 Bankruptcy: Reorganization, on the other side, is also known as “debt adjustment” (or “reorganization”) because it creates a repayment plan for your debt that you are more likely to be able to afford. You will not lose your assets, but your debts must be paid back. Your income, the type of debt, and your expenses will all affect how much you have to repay. The typical repayment plan will last three to five years before being discharged.
Chapter 13 is filed by people whose income is too high to be eligible for Chapter 7. This is a great option if you just need some debt relief, such as if your income is too high to qualify for Chapter 7. If you don’t wish to risk losing any assets, Chapter 13 bankruptcy may be an option.
Important Questions to Ask when contemplating bankruptcy
A trusted bankruptcy lawyer can help you decide which type of bankruptcy you want to file and how it will affect your finances.
- What Would Happen To My Credit Rating If I Filed For Bankruptcy?: Although many people believe bankruptcy will cause a drop in credit scores, it can actually help. Although your credit score will initially drop, once you have paid off the debt, it is possible to quickly rebuild it. Many filers were able to purchase a house in less than two years after their discharge.
- Is It Possible To Forgive Taxes In Bankruptcy?: Each type of bankruptcy filing has its own rules regarding tax debt. Tax debt can be discharged if it is due within three years of the bankruptcy filing or if the tax return was filed more than two years prior to the bankruptcy filing.
- Can Bankruptcy Affect My Tax Returns: The short answer to this question is no. You would be eligible for tax refunds in general, but your tax refunds could count as assets.
- What Is The Means Test?: This test is required by the Bankruptcy Abuse Prevention Prevention Act. It compares your income with the Florida median income and your expenses against national standards for your family size and location. You might want to file Chapter 7 but have a high income. There is still a possibility that you could qualify for Chapter 7 even if the Means Test finds that your family has large expenses.
Why a lawyer is so important when filing for bankruptcy
Although the filing does not require an attorney, it is important to remember that your financial future could be at risk. A lot of filers prefer to have an attorney to help them because the process is more smooth when they are accompanied by one. People who try to proceed on their own can often face major problems such as failing to submit documents, missing required appearances, or being accused of fraud. These mistakes can be avoided by hiring a lawyer to help you ensure that your bankruptcy case is thorough and complete.
An attorney can offer sound advice about the financial and legal implications of your decision. Every option that you choose can have an impact on your current and future financial situation. A bankruptcy attorney in Tallahassee Florida with years of experience can help you make the right decisions. Contact Bruner Wright today for more information.