Are you drowning in debt? Do you feel overwhelmed by your debt? Do you get tired of being called by creditors day in, day out? Many people are able to overcome financial hardships. Whether is a job loss, a costly medical condition, other unexpected expenses it’s time to talk to bankruptcy lawyers in Pensacola Florida. Bankruptcy may be an option to relieve financial stress if you find yourself in this situation.
Many people oppose filing for bankruptcy as they feel it is irresponsible. The bankruptcy code was designed for those who are financially struggling. This option has been used by many people to get a fresh start and overcome their financial difficulties. This includes some of our most successful citizens.
The Bruner Wright, P.A.’s bankruptcy lawyers in Pensacola Florida understand the financial difficulties families face, especially during economic downturns. Bankruptcy is an option that many people who find themselves in this situation should consider. There are two types available for consumer bankruptcy: Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 12 bankruptcy, and Chapter 13 bankruptcy. There are many differences between these programs. We can help you decide if either one is right for your situation or if you need a different financial solution.
Chapter 7 Bankruptcy
Chapter 7, also known as “straight” and “liquidation”, is the most popular type of consumer bankruptcy. Consumers and small-business owners can file Chapter 7 to eliminate most types of unsecured debt. This allows them to “start over” and rebuild their finances.
Here is a list of the most common unsecured creditors you can get rid of through Chapter 7 bankruptcy.
- Credit Cards
- Payday loans
- Medical bills
- Most Personal Loans Not Secured
- Utility bills
- Most Wage Garnishments
- The majority of Court Judgments
- Certain types of tax debts
There is certain debt that cannot be discharged in bankruptcy like unsecured debts through Chapter 7 bankruptcy. The most prominent are:
- The majority of IRS Tax Debts
- Government-backed Student Loans
- Child Support
- Alimony/Spousal Support
- Credit obtained through fraud or misrepresentation
Chapter 7 bankruptcy is best for people who have very little income monthly, high unsecured debts, and few assets. This situation can provide significant financial relief by eliminating all qualifying unsecured debts.
Not all consumers are eligible for Chapter 7 bankruptcy. This option is available to you if your income is below the Florida median. To determine if you are eligible, however, you will need to pass a means test if your income is higher than the median. The test uses a complicated formula to determine how much disposable income you have each month, after subtracting your monthly expenditures from your monthly income.
What Property Can I Keep In Conjunction With Chapter 7 bankruptcy In Florida?
The property exemptions are a major factor in deciding whether you file for Chapter 7 bankruptcy. You are required to “liquidate” your assets to discharge your debts in a liquidation bankruptcy. All states have the ability to exempt certain assets from Chapter 7, which protects them against liquidation.
Florida allows you to exempt unlimited equity from your homestead. However, your property must not exceed a quarter of an acre in a municipality and 160 acres elsewhere. To be eligible for the Florida homestead exemption you must have been a resident of your property for at most 1,215 days. You will have to meet the requirements to qualify for the Florida homestead exemption. This exemption is worth up to $25,000. Equity can be used in cases filed after April 1, 2019.
If you file jointly with your spouse, you can exempt equity up to $1000 from a motor vehicle. You can also exempt certain assets such as:
- Personal property up to $1000, including items like furniture, tools, and electronics.
- Many types of retirement accounts and pensions;
- Workers’ compensation, unemployment, and Social Security benefits, as well as Veteran’s benefits.
- Savings accounts for education and health;
- You can get tax credits or refunds.
- Other exemptions may be available.
Florida offers a wildcard exemption up to $4,000 that may be used for any kind of personal property. The wildcard exemption can be used even if you don’t claim the homestead exemption.
Chapter 13 Bankruptcy
Chapter 13 is an option for those who aren’t eligible for Chapter 7 bankruptcy or are looking for a new financial solution. Chapter 13 is a court-approved plan for debt consolidation that allows you to consolidate your debts in one monthly payment. This will usually take three to five years.
Consolidating any type of debt, both secured and unsecured, into a Chapter 13 bankruptcy can result in a lower interest rate and a more affordable monthly repayment than what you have currently. You may be able to pay off a debt without interest or for less than the principal amount.
Chapter 13 bankruptcy is only available to consumers. It is not available for businesses. To be eligible, you must have a certain income. This type of bankruptcy will still require you to repay your debts. You will therefore need some income to do this work. You can keep your assets, and you don’t have to worry about personal property exemptions. This plan can be used to repay debts that are not dischargeable under Chapter 7, such as unpaid taxes or child support. However, these debts are considered “priority” debts and must be paid in full, even if a Chapter 13 debt restructuring plan is implemented.
Talk With Knowledgeable Bankruptcy Lawyers In Pensacola Florida
Families and individuals can be put under enormous strain by financial hardships. There are many options to help you get out of this situation, but in many cases, consumer bankruptcy is the best choice. Our bankruptcy lawyers in Pensacola Florida are here to help you. We are available to meet with you and discuss your financial situation. We will also explain the pros and cons of Chapter 7 bankruptcy, Chapter 13 bankruptcy, and other options so that you can make an informed decision about how to proceed.
Contact Our Office Today
Bruner Wright is the top-rated experienced bankruptcy attorney in Pensacola, South Georgia, and the Florida Panhandle. Our team has more than 40 years of experience helping people file Chapter 7 bankruptcy, Chapter 11 bankruptcy, Chapter 12 bankruptcy, and Chapter 13 bankruptcy. Our practice has been very successful in helping people discharge their debts. We offer a personal service that is comprehensive and thorough in all aspects of our industry. We are responsive to the needs of our clients.
Our Service Areas
- Tallahassee Fl
- Douglas Ga
- Brunswick Ga
- Augusta Ga
- South Georgia
- The Florida Panhandle
Contact us today to schedule a consultation with a bankruptcy attorney. Find out if bankruptcy is the best option. A member of our team will review your case to help you make the right choice. We are focused on consumer bankruptcy. We want you to achieve financial stability.