Bankruptcy
As our country endures financial crisis, many individuals and businesses find themselves in situations they never imagined they would have to face. Lost jobs and declined sales have created hardship for people of all walks of life. From Main Street to Wall Street, small businesses, big corporations, and ordinary people alike are turning to our Nation’s Bankruptcy Laws for relief and a fresh start. The Ceballos Law Firm can help you navigate through this area of law and counsel you through these trying times.
There are two main types of bankruptcy relief available for individuals, which will each be discussed in turn below. The Ceballos Law Firm can help and counsel you through the bankruptcy process and help you decide which path is right for you.
Chapter 7 Bankruptcy
When most people think of Bankruptcy, the concept that comes to mind is a Chapter 7 discharge. This is by far the most common type of bankruptcy. A chapter 7 bankruptcy is designed to relieve you of all of your debt by discharging or “wiping out” most unsecured debts forever. These debts may include credit cards bills, medical bills, deficiency judgments from car or vehicle repossessions, money judgments from lawsuits filed against you, and other debts. You can also discharge debts you incurred as a personal guarantor to a business you may have started. Unfortunately, certain debts such as student loans, child support, and other “Priority” unsecured debts require very exceptional legal circumstances to be discharged.
In most chapter 7 cases, a debtor keeps all exempt property, and eliminates qualifying debts forever. The Ceballos Law Firm can help you determine if you have any non-exempt personal property that could be subject to seizure by the Trustee. If you are making payments on one or more vehicles, you may keep the vehicle so long as you “reaffirm” the debt and agree to continue making payments. You may also choose to “surrender” the car and give it back to the bank, without having to pay the difference if it sells at auction for less than the loan amount. Once the bankruptcy petition is filed, the entire process usually takes from 3-4 months.
Guiding You Through the Legal Process
Once you hire a Bankruptcy attorney, you will be given an extensive questionnaire that must be completed in order to draft and file your bankruptcy petition. As soon as your attorney files the bankruptcy petition, an “Automatic Stay” is put into place which legally stops your creditors from harassing you for the entire time your bankruptcy case is pending, and beyond. Once the petition is processed, a “Trustee” is appointed to oversee the bankruptcy case. Although the trustee is not a judge, their role is to supervise the case and make sure the law is being followed by debtors and creditors. The trustee will set a date for the debtor to appear at the courthouse to review the petition in person and ask the debtor questions about their case under oath. This meeting is called a “341” meeting (pursuant to statute number) or a “meeting of the creditors.” The meeting also allows creditors a chance to ask the debtor questions under oath about the case. If a creditor decides to attend the meeting, they will normally send an Attorney in their place to question the debtor. While the meeting is generally informal, it is a legal proceeding and is recorded under oath for case file. For these reasons, it is important to have your own bankruptcy attorney handle your bankruptcy case. The Ceballos Law Firm can represent you in your case and appear in court to counsel you and aggressively protect your interests.
The Chapter 7 Means Test
In 2005, Congress enacted the Bankruptcy Abuse Prevention and Consumer Protection Act. This new law contains provisions is the now infamous “means test” which may prevent certain debtors from obtaining a chapter 7 bankruptcy discharge if their income is too high when compared to their expenses. If this is the case, the debtor may still be eligible to file for chapter 13 bankruptcy relief, which is in the section below. The Ceballos Law Firm can help to properly evaluate your specific circumstances to determine whether or these provisions can affect your bankruptcy case.
Chapter 13 Bankruptcy
If you don’t qualify for a chapter 7 bankruptcy, or want to protect certain assets that are at risk, The Ceballos Law Firm may counsel you regarding a Chapter 13 bankruptcy in Central Florida.
To qualify for a chapter 13 bankruptcy, the debtor must be able to show that he or she earns a steady wage that can support consistent payments on a payment plan. Rather than liquidate assets and discharge debt, Chapter 13 establishes reorganization of the debtors financial affairs through a repayment plan that lasts between three and five years.
Another key feature of the chapter 13 bankruptcy is that it allows you to keep most or all of your non-exempt property. A chapter 13 bankruptcy can be a solution for you if you are facing FORECLOSURE and you wish to keep your home. It can also be an invaluable tool if you possess valuable and substantial non-exempt personal property which is subject to seizure by the trustee in a chapter 7 case.
If your income has disqualified you for a Chapter 7 bankruptcy discharge under the means test discussed above, or if you do not wish to liquidate your assets and you are capable of paying back your creditors over time, contact The Ceballos Law Firm to discuss the option of filing under chapter 13.
Once your chapter 13 bankruptcy petition is filed, an automatic stay is put in place that prevents creditors from contacting you or from trying to collect on judgments or proceed with lawsuits against you in state court.
Guiding You Through the Legal Process
The Ceballos Law Firm can counsel you through the process of filing a chapter 13 Bankruptcy. The attorneys in this firm can handle all aspects of your Chapter 13 case. A successful Chapter 13 bankruptcy is completed after three to five years, when you have paid back a portion of your debts according to the repayment plan. For help deciding if Chapter 13 bankruptcy is the proper solution for your financial situation, contact The Ceballos Law Firm. Call today for your FREE CONSULTATION.