The subject of personal bankruptcy is a complex and sometimes unpleasant one. There are a good number of individuals that do not know exactly when they can declare bankrupt. For the residents of Fort Lauderdale bankruptcy declaration and filing needs to be done with very careful declaration and after receiving advice from qualified attorneys. It also helps in deciding the right type of bankruptcy for every situation.
Debtors use bankruptcy as way of getting out of debts that they are unable to pay. Chapter 7 and chapter 13 bankruptcies are the two most common forms of protection that are available to individuals. Chapter 7 is a liquidation plan because it involves liquidating non-exempt assets to raise funds. It is these funds that are used for paying off creditors. Chapter 7 is used to discharge such unsecured debts as credit cards, medical bills and personal loans.
There are debts that are not able to be discharged by chapter 7, among them student loans and federal and state taxes. The moment one files their petition, creditors get notified and the individual is given a stay period that is some form of a grace period. During this time there cannot be any action such as foreclosure or utility services being shut off against them. After the grace period, creditors can resume action against the debtor unless they are paid.
Examples of exempt assets of an individual are their primary residence and their primary car. All other things, for instance real estate and other forms of investment, fall under assets that are non-exempt. They are the assets that are sold for purposes of paying creditors. The debtors do not benefit in any way from the sales.
The income of debtors is used as the biggest consideration in determining qualification for chapter 7 protection. In the event that the income is more than the state median, feasibility of chapter 7 is determined by using a means test. As a requirement also, the individual must have undergone credit counseling in the last six months preceding their application. The counseling should be done by an agency that is approved.
Chapter 13 bankruptcies are known as wage earners protection. They are so referred because they are used by persons with regular income who can work out a payment plan with creditors. It is a way of restructuring the debts. Unlike chapter 7, it saves the home from foreclosure and vehicles from repossession. The payment plans can never go for more than 5 years.
One major benefit of chapter 13 protection is that it acts like a debt consolidation during the period when repayment is done. The debtor makes a monthly payment to their trustee, who in turn pays off each creditor as stipulated. The repayment process is easily managed by debtors. Filing for bankruptcy happens at a cost. One also parts with significant fees to pay their attorney.
For people that live in Fort Lauderdale bankruptcy filing needs very careful consideration before the decision is reached. It will most likely have a negative effect on the credit of the person. For the majority of people though, it is a good way to start afresh after getting into debt. Other options are debt consolidation and credit counseling.
Debtors use bankruptcy as way of getting out of debts that they are unable to pay. Chapter 7 and chapter 13 bankruptcies are the two most common forms of protection that are available to individuals. Chapter 7 is a liquidation plan because it involves liquidating non-exempt assets to raise funds. It is these funds that are used for paying off creditors. Chapter 7 is used to discharge such unsecured debts as credit cards, medical bills and personal loans.
There are debts that are not able to be discharged by chapter 7, among them student loans and federal and state taxes. The moment one files their petition, creditors get notified and the individual is given a stay period that is some form of a grace period. During this time there cannot be any action such as foreclosure or utility services being shut off against them. After the grace period, creditors can resume action against the debtor unless they are paid.
Examples of exempt assets of an individual are their primary residence and their primary car. All other things, for instance real estate and other forms of investment, fall under assets that are non-exempt. They are the assets that are sold for purposes of paying creditors. The debtors do not benefit in any way from the sales.
The income of debtors is used as the biggest consideration in determining qualification for chapter 7 protection. In the event that the income is more than the state median, feasibility of chapter 7 is determined by using a means test. As a requirement also, the individual must have undergone credit counseling in the last six months preceding their application. The counseling should be done by an agency that is approved.
Chapter 13 bankruptcies are known as wage earners protection. They are so referred because they are used by persons with regular income who can work out a payment plan with creditors. It is a way of restructuring the debts. Unlike chapter 7, it saves the home from foreclosure and vehicles from repossession. The payment plans can never go for more than 5 years.
One major benefit of chapter 13 protection is that it acts like a debt consolidation during the period when repayment is done. The debtor makes a monthly payment to their trustee, who in turn pays off each creditor as stipulated. The repayment process is easily managed by debtors. Filing for bankruptcy happens at a cost. One also parts with significant fees to pay their attorney.
For people that live in Fort Lauderdale bankruptcy filing needs very careful consideration before the decision is reached. It will most likely have a negative effect on the credit of the person. For the majority of people though, it is a good way to start afresh after getting into debt. Other options are debt consolidation and credit counseling.
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If you need legal assistance with a Fort Lauderdale bankruptcy, visit the professionals at www.biggerodriguez.com today. You can see details about services at http://www.biggerodriguez.com now.
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