Bankruptcy

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Now more than ever, countless individuals, families, and businesses are experiencing the impacts of financial uncertainty and hardships. This often results in much unnecessary stress and frustration. Bankruptcy is thought of by many as an ominous process. The Tancredo Law Firm seeks to make the process smooth and extremely easy to understand. Filing for bankruptcy is often the best option to get a fresh start financially. 

Bankruptcy is a term often associated with situations of financial hardship.  It is also a valuable tool to assist individuals in eliminating or repaying debts and rehabilitating themselves from financial hardships.  The process of fling can be complex and the guidance of an experienced attorney can assist in maximizing the benefits of Federal Law. 

The two most common types (Chapters) of bankruptcies involve the liquidation and reorganization of a person’s assets to alleviate financial burden. 

Liquidation of assets, known as Chapter 7 Bankruptcy, is when a debtor requests a legal discharge of his/her debts from the bankruptcy courts.  The process typically takes 90 days to complete from the date of filing and is available to those individuals who who meet certain income and asset qualifies.  An experienced attorney can guide you through this process.  This is the most common form of bankruptcy filed in the United States.  

Chapter 13 Bankruptcy is when a debtor is responsible for repayment of all or some of his or her debts in a pre-determined plan.  The entire bankruptcy process occurs under the guidance and jurisdiction of the Federal Bankruptcy Court.  The assistance of experienced legal counsel is essential in the calculation of this repayment that is most beneficial to the client.   

Regardless of the type of bankruptcy filed, upon the initial filing an order is entered by the Court known as the automatic stay.  The automatic stay will stop most creditors from pursuing collections from the debtor filing bankruptcy.  

Specific bankruptcy filing impacts include the following:

Repossession – Bankruptcy prevents repossession once a case is filed.  It is important to note that filing a  Bankruptcy may not result in a return of a previously repossessed vehicle, as Florida law currently vests title to the repossessed property with the creditor once they take possession so it is important to act quickly.  Filing a bankruptcy will stop potential repossession and allow the debtor to pay the balance owed on the auto loan while retaining possession and ownership of their vehicle.

Foreclosure – Chapter 7 filing will only temporarily stop a foreclosure.  A Chapter 13 filing may be a better option in this case since it usually allows a debtor to keep his or her house.  In this process a repayment plan is developed with the mortgage company through the Chapter 13 Plan or you can seek to modify your mortgage loan through a mediation process.  Both of these have proven successful and many homeowners have saved their homes through this process. 

Wage Garnishments – The filing of any bankruptcy will stop wage garnishments.

There are certain debts that cannot be discharged and a debtor will continue to be responsible for payment on them, including unpaid child support and alimony. Additionally, a bankruptcy court may not discharge student loans unless a debtor can show that repayment would create be an undue hardship.