Ocala, FL Filing for Bankruptcy
There are people in Florida who find themselves in impossible financial situations — their monthly income is not enough to pay their bills and provide food for their families. When this happens, a person's options are limited. It may be time to consider filing for bankruptcy.
Filing For Bankruptcy In Florida: The Bankruptcy Process
Bankruptcy is a legal process conducted by a bankruptcy court. There are two different forms of bankruptcy. One is a liquidation, and the other is a reorganization. Chapter 7 can eliminate the debts of an individual, whereas Chapter 13 will create a financially effective plan for the repayment of creditors. This is a way a person can repay all or some of their debts. During the bankruptcy process, individuals are given protection from their creditors by the federal bankruptcy court.
Collection of Debts
When an individual or business is involved in the bankruptcy process, the collection efforts of creditors must stop. This includes all harassing phone calls as well as letters from the creditors. Prior to bankruptcy, the Fair Debt Collection Practices Act (FDCPA), as well as the Florida Consumer Collection Practices Act (FCCPA), provide important rights to prevent any type of harassing debt collection activity.
Chapter 7 Bankruptcy
Chapter 7 is designed to provide a procedure supervised by the bankruptcy court using a trustee. The trustee is responsible for administering the bankruptcy. He or she will carefully examine your assets and financial liabilities. The goal is to see it there whether any property that can be sold for the benefit of the creditors. In the state of Florida, some property is not able to be liquidated if it is considered exempt. Most personal property and many other items are considered exempt under Florida bankruptcy law. Our bankruptcy lawyers are able to explain this in further detail specific to your situation.
Filing Chapter 7 Bankruptcy
It's important you seek legal counsel before you file Chapter 7 bankruptcy. Our Ocala bankruptcy attorneys know how to file bankruptcy for our clients.
The Chapter 7 process starts with a debtor filing a petition with the bankruptcy court in their area. The information supplied on the petition will be your assets and liabilities, monthly income and expenses, statement of financial affairs, schedule of contracts and unexpired leases. When you file the petition, you must also file a certificate of credit counseling.
Approximately 40 days after the petition is filed, the trustees will have a meeting of creditors. The trustee and creditors can ask you questions about the bankruptcy. An experienced bankruptcy attorney from our firm can help in this situation. After this meeting, a copy of the order to discharge debts will be sent to all creditors as well as you and your attorney.
Chapter 13 Bankruptcy
This type of bankruptcy is known as reorganization and is filed by individuals who want to get current on their debts and modify their payment schedules. In this situation, you plan to repay creditors within five years. If the plan is acceptable to the bankruptcy court, it is sent to the creditors. A meeting of the creditors is scheduled, and if the submitted plan is approved by the bankruptcy court, the trustee will distribute the funds submitted for payment.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is part of the Bankruptcy Code that provides bankruptcy protection for a corporations or partnerships. A business bankruptcy can also be used by an individual in business. Business bankruptcies can be very complicated. It is best if they are handled by an experienced attorney.
Get Help From an Ocala Bankruptcy Lawyer
Some bankruptcies are simple, and others are very complicated. At Schatt, McGraw, Rauba & Mutarelli, our bankruptcy attorneys are knowledgeable and experienced legal professionals. We can provide guidance through the entire process no matter what the situation. Contact our law firm today to get your life back on track.