While declaring bankruptcy is never something anyone wants to do, it can also be a crucial lifeline for people who are dealing with significant financial debts and obligations that are affecting their ability to live a normal life. That said, filing for bankruptcy can be an extremely complicated and time-consuming process. You could end up in an even worse position if you go into it without a thorough understanding of how bankruptcy works or what your obligations are.
If you are considering bankruptcy for any reason, you should make it a priority to speak with a Winter Garden bankruptcy lawyer about the options available to you in your specific situation. Every bankruptcy case is unique and guidance from our team at Z. Hernandez Law can be essential to getting an outcome which protects your rights and preserves your long-term best interests.
While there are a few exceptions under unique circumstances, most individuals who file for bankruptcy in Florida and throughout the United States do so under either Chapter 7 or Chapter 13 of the federal Bankruptcy Code. Comparatively, Chapter 7 bankruptcy is a simpler and usually faster process; and if it is successfully completed, it can “discharge” certain types of debt. The main trade off, though, is that those debts are typically paid off by liquidating many of the filer’s assets (excepting the most essential ones), though there are situations where a lawyer can produce workarounds where most or all the assets can be protected.
Chapter 13 bankruptcy, on the other hand, does not always require liquidation of assets and does not immediately eliminate debts. Instead, it establishes a payment plan—usually spread out over a period of three to five years—for those obligations to be paid off. It also tends to be more expensive than Chapter 7 bankruptcy, and it can also be more difficult to qualify for in the first place. A Winter Garden bankruptcy attorney could discuss the benefits and drawbacks of each approach during a private initial consultation.
One important thing to know about filing for bankruptcy, specifically in Florida, is that many of the “exemptions” allowed under federal law for people filing in other states are not available here. Instead, filers can only use the exemptions established under state law, which are fairly generous in some respects compared to exemptions provided in other states.
For example, the “homestead exemption” allows filers to declare an unlimited amount of home equity as exempt from liquidation in bankruptcy proceedings, provided that the filer uses that home as their primary residence and meets a few other qualifying criteria. It is also possible to exempt certain amounts of various other types of property, including motor vehicle equity, education and health savings, tax credits and refunds, and certain types of retirement savings and accounts.
Attorney Hernandez, a bankruptcy lawyer in Winter Garden, could provide vital assistance with identifying and taking full advantage of all possible exemptions for a person’s bankruptcy filing.
Even if it is the right decision for you, the idea of filing for bankruptcy can be extremely intimidating. Having support from a qualified legal professional is important in making sure you can financially handle this process without increasing your stress about the future.
A Winter Garden bankruptcy lawyer provides the assistance you may need to get the best possible result from your bankruptcy case. Call our team today to learn more about what bankruptcy would mean for you.