Flash Widget
 

Bankruptcy

Filing for bankruptcy can protect you if you are financially strained, but it can also lead to many legal repercussions. To fully understand what type of bankruptcy is appropriate for your situation and what it means for your finances, talk to an attorney at the Coye Law Firm. Many disputes over property and debt need immediate intervention to prevent further damage to a consumer's credit and financial state. Our offices in Clermont, Orlando, Kissimmee, or Melbourne can take on these cases and explain your options in bankruptcy.

Forms of Bankruptcy

There are three types of bankruptcy commonly filed. These are:

  • Chapter 7
  • Chapter 13
  • Chapter 11

Below, you will find information on who can file these types of bankruptcy and how they try to solve the debtor's predicament.

Chapter 7 Bankruptcy

Individuals and businesses can file for Chapter 7 bankruptcy. In this case, a trustee is appointed on behalf of the debtor. After the debtor's "exempt" property is determined, the rest is liquidated or sold in order for the trustee to pay the creditor, thereby satisfying some or all of the debt. 

To be eligible to file for Chapter 7 bankruptcy, the person or business must: 

  • meet income guidelines
  • received credit counseling within 180 days of filing
  • file debt management plans with the court if mandated by the credit counselor

There is a lot of paperwork involved in filing a Chapter 7 bankruptcy case. The individual or business must file the following documents with the court where he or she lives or conducts business. 

Those filing for bankruptcy may not be able to pay the filing fees. A waiver of the fees can be applied for through this form.

Debtors must also provide the trustee with a copy of tax returns filed during the case and those not filed before the case began. Once the case commences, the trustee will meet with creditors and schedule repayments based on the debt's classification. 

An individual debtor may seek discharge from Chapter 7 bankruptcy. A discharge will absolve the debtor from most remaining debts, except for child support, alimony, certain taxes, and education loans. The United States Bankruptcy Court advises that since there are many exceptions in being granted a discharge, the debtor should contact competent legal counsel before filing. Meeting with an attorney at the Coye Law Firm can help to negotiate the terms of being discharged from Chapter 7 bankruptcy and what responsibilities you will have if your request is granted.

Chapter 13 Bankruptcy

Filing bankruptcy under Chapter 13 allows the debtor to personal organize a repayment plan for their debts. The plans typically span three to five years for individuals with a regular income. A debtor who earns less than a median wage for the state they live in will have three years to pay back the loan, while those earning over the state median will have five years. Creditors cannot start or continue collection efforts if Chapter 13 bankruptcy is filed. 

To be eligible to file for Chapter 13 bankruptcy, the person must: 

  • be employed, including self-employment or those operating an unincorporated business
  • have unsecured debt less than $307,675
  • have secured debt less than $922,975.

These amounts may change to reflect economic factors, so you may need an attorney to see if you meet current eligibility requirements. A lot of the paperwork involved in a Chapter 13 case is identical to that of the Chapter 7 cases. However, a debtor has to additionally file: 

  • evidence of payment from employers received 60 days before they filed (if applicable)
  • a list of all creditors, including the amount and nature of their claims
  • the source, amount, and frequency of their income
  • a list of their monthly living expenses
  • a comprehensive list of their property

The individual's repayment plan must be filed within 15 days of filing. Meeting with an attorney to discuss how you can realistically pay of debts under Chapter 13 bankruptcy can ensure that you are satisfying all requirements. If a plan is drawn up too hastily, it could omit important information regarding your responsibilities. The Coye Law Firm will handle these documents with consideration and be thorough in the expression of your rights. An attorney can also walk you through every step of the confirmation hearing where your plan is approved.

Foreclosure & Chapter 13 Bankruptcy

When a homeowner is unable to pay their mortgage for an extended period of time, their home may go into foreclosure. These claims are on the rise due to the current economy, but some may be able to save their homes through Chapter 13 bankruptcy filing. The debt management plans provide a way for homeowners to schedule and cure missed mortgage payments over time. The payments that are due while the individual is in Chapter 13 bankruptcy, however, are still due on time. 

Foreclosures are complex legal matters and more information on them can be found here. The federal government is exploring ways to alleviate struggling homeowners of certain burdens under Chapter 13. The mortgage attorneys at the Coye Law Firm are up to date on these laws and can explain to you what options you have when considering bankruptcy. Contact a foreclosure attorney today.

Chapter 11 Bankruptcy

Corporations, partnerships, or sole proprietorships can file for Chapter 11 bankruptcy. These businesses are reorganized under this type of bankruptcy, and the debtor proposes a plan to pay off creditors over a certain period of time. Chapter 11 allows the business to continue operating while paying off their debts. The petition for bankruptcy may be filed voluntarily by the debtor, or be an involuntary petition filed by the creditor. 

The debtor must file with the court: 

  • a schedule or current income and expenditures
  • a statement of financial affairs
  • a schedule of assets and liabilities
  • a schedule of executory contracts and unexpired leases

The fee for filing Chapter 11 bankruptcy is $1,000. This may be the most expensive form of bankruptcy, but it doesn't put the owner's personal finances at stake. The Bankruptcy Court must be informed of major business decisions of entities that file Chapter 13 bankruptcy. 

As in the other bankruptcy cases, a trustee is appointed to monitor the payment of debts. Chapter 11 uses a U.S. trustee to monitor debt payments, meet with creditors, and develop a reorganization plan. After the plan is developed, the Court, creditors, and stockholders can accept and confirm it before it is executed. 

The U.S. Bankruptcy Court for the Middle District of Florida has set up a site for Frequently Asked Questions for all types of bankruptcy. To see if your specific question is answered, click here. Their homepage also has valuable resources for anyone considering or dealing with foreclosure. 

Important Forms are available here.

The Coye Law Firm is experienced in bankruptcy proceedings and tax matters. If you find yourself in financial trouble, it is important to know your responsibilities and how your rights as a consumer are protected. Call today to start the process of resolving disputes with creditors.

 

Your Case Review

Information*

 

Experience, military service & family

 

Recent Headlines

New Free Trial Websites and Products
You may have noticed some changes here recently with Innovign, both design and [...]

Words About Hosting and Accounts
I’ve been designing websites for several years now, and one thing that [...]

Welcome to Innovign!
I’d like to introduce ourselves as the developers of Innovign Real [...]

 

Wade Coye's Blog

Health Insurance and Tort Reform
Health Insurance and Tort Reform, both are part of the [...]

The Ugly Truth About Florida Auto Insurance Requirements
The ugly secret about Florida car and truck insurance is the minimal amounts [...]

The Big Lie About the Economy and Lawsuits
A bad economy does not create more [...]