subject: Jl Martin Law Firm - Facts And Solutions Of Bankruptcy [print this page] Real Estate Litigation : Mostly the people who are settled in Florida will have more money issues, which can be caused by overspending, uninsured medical bills, sudden unemployment, and divorce among other things. These unexpected hurdles will cause debt which cant be corrected immediately. If you find yourself trapped in a hopeless financial situation, then bankruptcy will be the best option. Bankruptcy is not the end of the world but is the process of rebuilding your new life.
Bankruptcy is legal process which is handled in federal court in which a debtor declares when they are unable to pay off their debt. It is every citizens constitutional right to declare bankruptcy. There are three bankruptcy district courts in Florida: Northern, Middle and Southern. A debtor can file for bankruptcy in any district in which their region of residence corresponds to. To be eligible to filing, you need to live in Florida at least two years prior to the date of filing. The most common types of bankruptcy for consumers are referred as Chapter 7 and Chapter 13.
Chapter 7 bankruptcy is known as a straight bankruptcy. A court appointed trustee liquidates your non-exempt property, and the proceeds go towards paying off creditors. Exempt property means that it is legally protected and may not be liquidated.
There are federal and state exemptions and in Florida they has an extremely liberal exemption policy, which includes the homesteaded property, Insurance, certain money obligations such as child support, most pensions, up to $1,000 in personal property; $2,000 for a married couple, a vehicle up to $1,000, certain public benefits including social security and some of the money from wages and government employee pensions.
You can even keep your credit card by, reaffirmation, which is basically telling the creditors for wishing to keep the debt and for continuing to pay it without protection from bankruptcy. In Chapter 13 bankruptcy, debts are restructured and the debtor can use the income which is received to pay off creditors. A Chapter 13 bankruptcy can be filed if the debtor has a steady income, and to pay off past debt. Under a Chapter 13, the debtor is allowed 5 years to pay back money owed, so it is a gradual approach than a Chapter 7 bankruptcy.
Chapter 13 has more advantages over Chapter 7, the ability to prevent your home from being foreclosed by making up delinquent mortgage payments gradually for up to 5 years and the ability to rearrange the payment schedule of non mortgage related debts, which can lower the payments. A necessity for dealing with any type of bankruptcy is to find an experienced bankruptcy attorney.
For more details about Bankruptcy in utah, visit http://www.jlmartinlaw.com
