FAQ - Bankruptcy

What is bankruptcy?

Bankruptcy is a legal process that allows people to have their debts discharged or to repay their debts over a set period of time.

What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy, sometimes referred to as "liquidation," is the most common form of bankruptcy. A Chapter 7 bankruptcy completely erases most or all of your unsecured debt and can provide you with a fresh start.

A Chapter 13 bankruptcy is often referred to as wage earner reorganization. This option is available only to individuals who have a regular income. In a Chapter 13 Bankruptcy, an affordable repayment plan is created for the debtor to pay creditors a percentage of their outstanding debt. In many instances, the amount repaid to the debtor’s unsecured creditors is greatly reduced. The debtor is generally allowed to keep his assets. Many people file Chapter 13 bankruptcy to protect assets they would otherwise lose by filing Chapter 7 bankruptcy. Chapter 13 proceedings can stop the foreclosure of a home and can stop IRS and other creditor’s collection efforts while regular payments are being made.

Filing either Chapter 7 bankruptcy or Chapter 13 bankruptcy will stop any home foreclosure action by your lender under the "automatic stay" provisions of the U.S. Bankruptcy Code. If you are far behind on your payments, Chapter 13 bankruptcy may provide you with the best solution and help you keep your home. Under a Chapter 13 debt repayment plan, you will have as long as five years to bring your mortgage payments current.

Like other forms of debt, past due taxes can create a significant burden. Filing for bankruptcy protection can be an effective tool to reduce or eliminate the burden of unpaid IRS or tax debt. In general, filing for Chapter 13 bankruptcy protection will allow you to discharge more tax debts than a Chapter 7 bankruptcy.

This question can only be answered after your individual situation has been reviewed by an experienced bankruptcy lawyer such as Attorney Christopher Forrest. Bankruptcy may or may not be the right option for you. In order for you to decide whether or not you should file for bankruptcy, you will need to get a better understanding of the bankruptcy process and the different types of bankruptcy that are available by working with Attorney Christopher Forrest.

A skilled bankruptcy lawyer can review your financial situation to determine whether you are eligible to file under Chapter 7 or Chapter 13 and make recommendations about which option would be best for your financial future.

There are two main differences between Chapter 7 and Chapter 13 bankruptcy. First, people that file for Chapter 7 may have their assets and/or properties liquidated. This means that most of their assets will be sold and the proceeds will be turned over to their creditors to repay a portion of the debt owed. Second, most people who file for Chapter 7 bankruptcy protection have their debts discharged (eliminated). In a Chapter 13, the debtor agrees to repay a percentage of their debts over the course of a Chapter 13 repayment plan.

Chapter 11 bankruptcy, also known as reorganization bankruptcy, is filed for by businesses. When businesses file for Chapter 11, they will reorganize the structure and operations of their companies so that they can become profitable again and repay the debts they owe to their creditors and lenders.

No, your creditors cannot harass you. Under the FDCPA, creditors are prohibited from engaging in harassing or menacing behaviors while dealing with consumers. If you believe you have been a victim of creditor harassment, contact the Forrest Law Firm

Florida Bankruptcy Attorney

If you are thinking about filing for bankruptcy in the state of Florida, contact the Forrest Law Firm today! We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.

Florida bankruptcy attorney Christopher Forrest represents clients in Sarasota County, Manatee County, Pinellas County, Hillsborough County, Venice, North Port, Sarasota, Bradenton, Tampa and St. Petersburg, and surrounding areas.