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Orlando Bankruptcy Attorney

orlando-bankruptcy-attorneyDrowning in a sea of debt can be a stressful and exhausting ordeal. It may seem as though everything is spinning out of control with the rising debt, increased cost of living, and relentless phone calls from creditors. Fleysher Law will help you find the best solution to reduce or eliminate your debt if you’re having trouble making ends meet. Contact Fleysher Law, an Orlando bankruptcy lawyer today and get your fresh start

Why Hire an Orlando Bankruptcy Attorney Early On?

why-hire-an-bankruptcy-attorney-early-onAny person may face emotional stress when filing for bankruptcy. It is reasonable to fear losing all you have worked so hard for, including your home, car, and other possessions. Even the idea of declaring bankruptcy might be frightening. At Fleysher Law, our bankruptcy lawyers offer sympathetic direction and professional assistance throughout the process.

For those going through financial difficulty, filing for bankruptcy is a viable option. Our Orlando bankruptcy lawyer is here to help you with your bankruptcy petition and recovery. Call us at (888) 988-6506 for a free consultation. Gain control over your financial future immediately.

Understanding the Bankruptcy Laws

Bankruptcy provides an opportunity to start over. Moreover, bankruptcy law discharges debts that are just unaffordable. Before filing for bankruptcy, there are things you need to know.

When you file bankruptcy, it gives creditors a chance to get compensation. However, it depends on the assets the individual or firm can liquidate.

Federal law and courts in the United States oversee every bankruptcy case. A bankruptcy judge decides whether bankruptcy filers are eligible to petition for bankruptcy. They also determine whether they should dismiss their debts in federal bankruptcy cases.

A trustee is an officer designated by the Department of Justice’s United States Trustee Program. They administer bankruptcy cases on behalf of the debtor’s estate.

There is seldom direct communication between the debtor and the judge unless a creditor raises an issue during the hearing.

Different Types of Bankruptcy Cases in Orlando, FL

different-types-of-bankruptcy-casesWhen it comes to financial difficulties, no two cases are exactly alike. This situation is also true for bankruptcy cases. There are two common types of bankruptcy in Orlando, FL: Chapter 7 and Chapter 13.

Usually, Chapter 7 bankruptcy is the quickest and easiest option. Liquidation bankruptcy, or Chapter 7, involves the sale of non-exempt assets to pay off creditors. In some cases, debtors may not have any non-exempt assets. Therefore, the court discharges their debts without having to make any payments.

When a person’s regular income is too high to meet the criteria for Chapter 7 bankruptcy, Chapter 13 bankruptcy is the better choice. It is the wage earner’s bankruptcy and is available to those with a regular income. Under it, individuals get to keep their assets and make regular payments to their creditors.

Discussing your legal options with an experienced Orlando bankruptcy attorney is crucial. Bankruptcy attorneys can help determine which type of bankruptcy is right for you. Call our law offices today if you want legal services near Central Florida and the Orlando area.

An Overview of the Chapter 7 Bankruptcy

Chapter 7 is also known as liquidation. Liquidation is available to both businesses and people. It entails selling all non-exempt property of the bankrupt and distributing the money to the creditors.

The Chapter 7 Bankruptcy Process

the-chapter-7-bankruptcy-processChapter 7 bankruptcy can also be “liquidation bankruptcy.” You can use it to discharge most kinds of unsecured debt like medical bills. You can also use Chapter 7 bankruptcy to stop foreclosure and eviction proceedings.

An individual applying for Chapter 7 must pass the means test to qualify. This test ensures that only those who truly cannot afford to repay their debts are eligible. Once you have filed for a petition, an automatic stay will go into effect. An automatic stay will stop creditors from pursuing collections activities against you.

Eligibility of Applying for a Chapter 7 Bankruptcy

You may wonder about the eligibility requirements for a Chapter 7 Bankruptcy. To file for Chapter 7 bankruptcy in Florida, you must pass what is known as the “means test.”

The means test is a calculation utilized to determine whether or not you have the ability to repay your debts. You will automatically qualify if your income is below the median income for a household of your size in Florida.

Suppose your income is above the median income. In that case, you will need to provide additional information about your expenses and debts.

An experienced bankruptcy lawyer can help you navigate the complex bankruptcy relief process. Schedule your free initial consultation and get individually tailored advice from our law firm.

Advantages and Disadvantages of Declaring a Chapter 7 Bankruptcy

advantage-and-disadvantage-of-delcaring-a-chapter-7-bankruptcyFiling bankruptcy is a significant move with both advantages and disadvantages. It is a decision that requires careful consideration.

Nonetheless, Chapter 7 bankruptcy is a vital instrument for debt relief. If you have any doubts or worries about filing for one, consider the advantages and disadvantages.

 

 

Advantages

  • Significant Debt Reduction: Chapter 7 bankruptcy allows a person or organization to discharge all unsecured debts. It also has no debt relief cap. Hence, it may erase hundreds of thousands of dollars in debt.

  • Automatic Stay: Your property cannot be repossessed or foreclosed by a lender during the bankruptcy phase. However, this is just a temporary solution. Nevertheless, it buys you some time to make up for outstanding payments or figure out an alternative solution.

  • No Wage Garnishment: No creditor can collect a portion of your wages or monthly income. No wage garnishments allow you to utilize your money to meet basic needs.

  • Exemptions for Real Estate: Chapter 7 allows you to retain essential assets for everyday survival. It includes a family home, a car needed for daily commuting, clothes, furnishings, etc. You can also keep other things worth less than a certain amount (usually $10,000 or less), allowing you to live comfortably.

  • Clean Slate in a Few Months: Chapter 7 allows for the resolution of financial problems within 3-6 months. You get immediate debt relief and a blank slate to start over. In contrast, Chapter 13 bankruptcy enrolls you in a debt repayment plan that can last up to 5 years.

Disadvantages

disadvantages

  • Income Limit: You are ineligible if your individual or corporate income exceeds a certain threshold. If you have a lot of money, the court will convert your bankruptcy to Chapter 13. It means you’ll get a partial or no debt discharge.

  • Poor Credit: Your credit score will decrease regardless when filing bankruptcy. The bankruptcy report will be on your credit report for seven to ten years. You will be unable to receive new credit or loans for some time. You will also be subject to extremely high-interest rates if you qualify.

  • Asset Liquidation: Non-exempt assets, such as high-value cars, real estate, and collectibles, will be sold by the bankruptcy trustee to pay off your creditors.

  • Unwanted Exposure: When you declare bankruptcy, the details of your financial situation are made public. Although anyone can look up the specifics of bankruptcy, few individuals do.

  • Non-dischargeable Debts: Mortgages, educational, and auto loans are not dischargeable under Chapter 7. Furthermore, bankruptcy does not discharge financial responsibilities. It includes child support, alimony, and government taxes.

An Overview of the Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is a payment plan supervised by the court. The debtor settles his debts based on his family income and reasonable costs. The “Chapter 13 plan” consists of monthly payments and amounts paid to various creditors.

Individuals with regular income might use it to create a plan to repay all or a portion of their obligations. Debtors propose a repayment plan to creditors for three to five years under this chapter.

The Chapter 13 Bankruptcy Process

the-chapter-13-bankruptcy-processFiling for Chapter 13 bankruptcy in Florida requires you to submit a repayment plan to the court. This plan will detail how you propose to repay your creditors over 3-5 years. To be approved, your payment plan must meet specific requirements.

First, you’ll need to ensure that your plan pays off all your priority debts in full. Priority debts are considered “essential” and include child support, alimony, and taxes.

You must also ensure that your plan pays at least as much as you would have if you chose to file for Chapter 7. In Chapter 7, you must sell your non-exempt assets to repay your creditors.

Finally, your plan must be feasible. It must be realistic, given your current income and expenses. If the court finds that your program is impossible, it may require you to make some changes.

If you plan to file bankruptcy under Chapter 13 in the Orlando area, you must speak with an experienced bankruptcy attorney. A skilled attorney can determine which is the right option for you. They can also assist you in creating a repayment plan that meets all requirements. Contact our law office today and get your free consultation.

Eligibility of Applying for a Chapter 13 Bankruptcy

Chapter 13 bankruptcy has unsecured debt limits of roughly $465,000 (2022) and secured debt limits of approximately $1,400,000 (2022).

Individuals who owe more than the stated amounts are ineligible to apply for Chapter 13 bankruptcy. Examples of unsecured debts are:

  • Personal loans;

  • Medical bills;

  • Credit card debt; and

  • Other credit cards used to purchase consumable products.

Secured debts are ones in which the creditor has an interest in your property to guarantee repayment.

Furthermore, they must have attended a credit counseling course through an accredited provider. It should also be within the 6 months preceding their applications. Additionally, the following are instances where you cannot qualify for a Chapter 13 bankruptcy:

  • People who have had a prior case dismissed within the last 180 days for failing to attend or comply with court orders; and

  • People voluntarily dismissed a previous case after creditors moved to collect property on which they held liens.

Advantages and Disadvantages of Declaring a Chapter 13 Bankruptcy

advantage-and-disadvantage-of-delcaring-a-chapter-13-bankruptcyFiling bankruptcy under Chapter 13 has many more benefits than drawbacks. One of the main advantages is that your creditors will stop bugging you. It will have a long-term impact on your credit report, which is a drawback. Here are a few more advantages and disadvantages of Chapter 13 bankruptcy:

 

 

Advantages:

  • Keep all possessions: You can keep them as long as you adhere to the conditions of your repayment plan.

  • Debt reduction: Although not erased, debt diminishes significantly.

  • Complete protection against creditors: Your creditors cannot trouble you. The law prohibits them from wage and debt collection.

  • Debt classification: Establish specific guidelines for debts you incur on your own. It also distinguishes those you incur with another person.

  • Dischargeable debts: These are debts incurred through credit card fraud. They also result from purchasing luxury goods.

  • Co-signer protection: Your co-signers protect you from creditors. The condition is if the agreed-upon payment schedule covers the entire debt amount.

  • Unlimited Filing: You can file bankruptcy for another Chapter 13 petition at any time. However, each petition filing appears on your credit record.

  • Foreclosure Defense: You could receive protection against any foreclosure proceedings.

Disadvantages

  • You remain on your credit report for up to 7 years: It makes it challenging to obtain new lines of credit or loans.

  • You may not be able to discharge all of your debts: It includes student loans, alimony, and child support payments.

  • You are required to make regular payments: You must pay your trustee regularly for the duration of your repayment plan. This duration can last anywhere from 3-5 years.

  • Dismissal of your bankruptcy case: It could happen if you miss a payment or fail to comply with the terms of your repayment plan. After, you may be subject to collections proceedings.

  • Difficulty qualifying: You may not qualify if your income is too low. It could also be if your debts exceed a certain amount.

  • You would have to give up your tax refund: All of your available funds must go into your Chapter 13 plan. The trustee may keep your tax refund if your schedule only pays creditors at a rate of less than 100%.

  • You may not qualify for a mortgage or car loan: You may not be eligible until after you have completed your bankruptcy case.

  • Stressful and time-consuming for you: Because it is more complicated than Chapter 7, there are higher legal costs.

What Debts Can You Remove After Declaring Bankruptcy

what-debts-can-you-remove-after-declaring-bankruptcyMany unsecured debts might be renegotiated or eliminated through bankruptcy. Other debts, such as the following, cannot be canceled in bankruptcy:

  • Any obligations you failed to mention in your bankruptcy petition;

  • Several tax kinds;

  • Alimony or child support;

  • Penalties and fines due to government organizations;

  • Student loans;

  • Debts for wrongful death or personal injury brought on by the debtor using a motor vehicle while intoxicated or otherwise impaired;

  • Obligations resulting from tax-favored retirement schemes;

  • Bills from the condo and cooperative housing fees;

  • Legal costs associated with child support or custody;

  • Criminal restitution; and

  • Further court fines and sanctions.

What Our Orlando Bankruptcy Attorneys Can Do for You

what-our-bankruptcy-attorneys-can-do-for-youThe bankruptcy law allows people struggling with debt to start again through bankruptcy relief. Undoubtedly, you can file one without bankruptcy attorneys. However, having an Orlando bankruptcy attorney on your side may benefit you more. Your legal team could:

  • Decide which bankruptcy filing you are eligible for;

  • Teach you how to guard your possessions;

  • Develop a suitable legitimate petition; and

  • Guide you on how to handle your credit following bankruptcy.

If you don’t know the potential pitfalls of filing bankruptcy, you risk losing other assets you might have been able to keep. Or worse, you could even fail to get your debts discharged

Orlando Bankruptcy FAQs

While your bankruptcy case is pending, you cannot apply for new credit lines, including credit cards. The time you can apply for a credit card will depend on how long it takes to settle and end your bankruptcy proceedings.

You will submit a bankruptcy petition to federal court. Your creditors will get notified when your bankruptcy petition is submitted. After, they are then required to stop collecting any owed debt. The court will then ask you for the following information:

  • The total sum of your debt;

  • A complete list of each of your creditors;

  • A breakdown of your whole revenue; and

  • Liquidation of your outgoing costs.

In bankruptcy court, you can represent yourself. You are also permitted to work with a bankruptcy attorney who will act as your representative. Your legal team can also advise you through the complex bankruptcy filing process.

Bankruptcy protection permits bankruptcy filers to keep the assets they need for jobs and daily living. It includes houses, vehicles, furniture, etc.

The automatic stay is the initial form of protection in a bankruptcy case. The automatic stay will pause all collection actions you could have dealt with before filing. The foreclosure will continue if your lender successfully gets it lifted. You can use this opportunity to make up any missed mortgage payments.

An automatic stay stops creditors from immediately bringing more commercial litigation. It also prevents them from collecting activities against you. An automated stay may stop the following:

  • The process of foreclosing;

  • Eviction;

  • Cutting off utilities; and

  • Garnishments of wages.

If the court discharges a debt in bankruptcy, the borrower is no longer responsible for that debt. A discharge is an official court judgment. It frees the borrower from paying the debt and stops the creditor from trying to collect it.

The primary goal of a borrower’s bankruptcy filing is often to secure a discharge.

Get Started With Your Case and Schedule a Free Consultation With Our Orlando Bankruptcy Lawyer

bankruptcy-lawyerYou are likely already under financial stress when thinking about filing for bankruptcy. Hence, getting legal representation shouldn’t add to your burden. Our bankruptcy lawyers at Fleysher Law are committed to vigorous, unrelenting advocacy on behalf of each client. We can assist you in ending creditor harassment and starting over.

When you come to our law office, we will sit down with you and listen to your legal issues. Our years of experience in each case qualify us to give you personalized guidance and legal counsel. Additionally, an Orlando bankruptcy attorney can thoroughly assess your finances and advise you appropriately for your needs. For a free case consultation, contact us at (888) 565-1223.