If you’re struggling to repay your debt, filing for bankruptcy may be the best solution for you. Bankruptcy is a process that ensures creditors. Their collection notices and that debtors can have a relief from the unsecured debts that they know as soon as you file the bankruptcy. Bankruptcy provides a discharge of various debts, and it can be an excellent way to get your finances back on track. Bankruptcy has helped countless people access the fresh start that they need to rebuild their credit and establish a better financial situation. It’s not the right move for everyone, and if you’re considering bankruptcy in Florida, it’s a wise idea to contact a bankruptcy lawyer to schedule a consultation immediately.
How Common is the Process of Bankruptcy?
Bankruptcy can be more common than you might think, and in the year 2018 there were over 755,000 bankruptcies filed across the United States. People are becoming more receptive to the idea of bankruptcy, and there isn’t the same stigma associated with bankruptcy filings as before. With the average American carrying up to $38,000 in debt, bankruptcy is becoming a viable option for many people that want to improve their financial situation.
There were 852 bankruptcy cases filed in Tampa just for June 2019. One of the most significant factors for filing often comes down to medical bills. Around 62% of bankruptcy cases come down to filing for medical reasons. Studies suggested that 92% of people filing for medical reasons had received over $5000 in medical bills.
The Three Main Types of Bankruptcy:
Chapter 7 bankruptcy in Florida is otherwise referred to as a liquidation bankruptcy. A chapter 7 bankruptcy involves the sale of all non-exempt property to repay creditors. Not everybody will be eligible for Chapter 7 bankruptcy and in order to qualify you must reach specific income limits.
Under Chapter 11 bankruptcy in Florida, you’ll be able to access financial relief for your business. This type of bankruptcy differs from chapter 13 in Chapter 7 and the goal is to help corporations and businesses that are struggling. You can continue to operate your company but it will restructure finances to minimize repayment.
Otherwise know as a reorganization bankruptcy or a repayment plan. Under Chapter 13 bankruptcy in Florida , is a 3 to 5 year repayment plan for all debts. If you comply with your repayment plan, you’ll be able to keep your property and discharge all applicable debts. In order to satisfy the conditions of this bankruptcy, you will need to follow your repayment plan for 3 to 5 years and receive your discharge at the end.
Where to File For Bankruptcy?
Bankruptcy is a task that gets filed in a federal court, and the place where you file for bankruptcy will depend on where you live. If you live in Tampa, for example, the case might be filed in the middle District of Florida. You will file in a court for the area that you’ve lived for the past 180 days before filing for bankruptcy. If you are filing for your business, you must file for bankruptcy where your company is located. With a business partnership, the area of filing will depend on where most of your business assets are located. All assets must be related to the business, and investments are not a sufficient asset for the requirement.
Documents that Are Required
In order to file for bankruptcy, you will need access to information to complete the paperwork. A bankruptcy trustee will also require documents that verify your petition is accurate. Documents that you must file for Chapter 13 in chapter 7 include a list of all of your creditors, the nature of your debts, the amount you have on each debt and the mailing addresses of each creditor.
Your source of income is required as well, such as a pay stub or tax information. It will require income information of your spouse as well,even if they’re not filing for bankruptcy with you. A list of all of your property and personal items in a detailed format will be required. A detailed list of all of your expenses including food, shelter, taxes, transportation and living expenses will be required to prove that you are unable to pay off your debts.
Credit Counselling During Bankruptcy
Anyone filing for a bankruptcy case will be required to complete a credit counselling class. The counselling class needs to be attended within 180 days of filing for bankruptcy. Borrowers will often take a class online and the fee for class providers is usually around $10. Make sure that you are using a company that is court approved when you are completing your bankruptcy.
The Costs of Bankruptcy
In most cases, the cost of filing for bankruptcy will vary depending on where you are located. The base cost for filing for Chapter 7 bankruptcy in Tampa is roughly $335. Filing for Chapter 13 bankruptcy costs $310. It could be possible for you to seek a break from the fee depending on your current situation.
If you are interested in learning more about the process of bankruptcy or filing with a professional bankruptcy lawyer, contact us today.