Bankruptcy Timeline In Florida?

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The bankruptcy timeline depends on a couple of factors. First, it depends on the chapter in which a bankruptcy is filed. A Chapter 13 bankruptcy  lasts for three to five years, whereas a Chapter 7 bankruptcy timeline typically takes less than a year to complete. There are really two separate timelines that come out of a Chapter 7 case. The first is the timeline for the discharge – a consumer typically receives a discharge within three to five months. The discharge is the legal order that says that the debt liability is eliminated. The second timeline is the timeline to close the case. The timeline to close a chapter seven case depends on whether it is an “asset case” or a “no asset” case. In a no asset case, the case will close around the same time that the discharge is issued. In an asset case, the timeline can vary dramatically but is typically around a year.

What Are Some Of The Truths And Myths Regarding The Bankruptcy Process?

The most essential truth is that bankruptcy offers a pathway for consumers to control and often eliminate their debts that is incomparable to any other alternative. The amount of debt that can be eliminated for a modest expense through bankruptcy is incomparable to debt consolidation or other debt negotiation alternatives. The myth about bankruptcy is that the bankruptcy benefit of eliminating or reorganizing your debts comes without any sacrifice on the part of the consumer. Particularly in chapter 7 cases, many consumers are under the impression that they get the benefit of the bankruptcy discharge without any commitment except for the filing fees. Chapter 7 is a trade-off; the bankruptcy benefit of the discharge is provided in exchange for agreeing to start over with limited assets. So, sometimes consumers have to commit some of their assets in order to obtain the bankruptcy benefit.

How Is Filing For Bankruptcy Going To Help Me?

Filing for bankruptcy offers two principal benefits. First, bankruptcy will typically allow a consumer to stop the immediate problems that are being caused by debt collection, such as wage garnishment, collection lawsuits and pending foreclosures. Once those problems have been dealt with, the consumer can catch their breath and evaluate the options for addressing the debts.

The second benefit that comes from filing for bankruptcy is the actual resolution of the debts. The resolution varies slightly based on the chapter in which a bankruptcy is filed and how the debts are addressed through the bankruptcy, but in short, the debts can often be discharged or reorganized in a way that is going to allow the consumer a more affordable cost of living going forward.

Does Everyone Qualify To File For Bankruptcy?

The qualifications for bankruptcy vary. For most consumers, there is an income qualification for chapter 7. For chapter 13, there are debt limitations, meaning that if you have too much debt, then you might not be able to qualify for chapter 13. Another option is chapter 11, which can offer other alternatives. Each individual’s circumstances have to be specifically reviewed to see which chapter of bankruptcy is going to be most appropriate for them.

What Happens At My First Appointment With A Bankruptcy Attorney?

We offer a free consultation to review a consumer’s financial profile. In the consultation, we’ll review the immediate problems that they have with debt, as well as the less immediate debt problems. We will evaluate income and expenses in order to see which option is most suitable for them. In some circumstances, the best option is not to file bankruptcy at all! If bankruptcy is appropriate, then we will review the chapters of bankruptcy that appear to best fit the situation, review payment options and take the case from there.

What Is The Main Reason That People File For Bankruptcy In The United States?

Broadly speaking, the number one reason that people file bankruptcy in the United States is because their debt has exceeded their ability to pay it. There can be many reasons why people find themselves in this situation. Oftentimes, consumers will have faced unexpected health issues, a divorce or a separation; they may have had a long or short-term change in their employment situation, they may have retired, or they have gone through a long-term adjustment to a fixed income.

Will Bankruptcy Wipe Out All Of My Debts?

While bankruptcy does discharge most debts (in particular, unsecured debts such as credit cards, medical bills, and personal loans), there are some debts that are not affected by a bankruptcy discharge (called “non-dischargeable debts”). Typically, these are debts owed to the government (like taxes and fines), debts incurred as a result of a marital separation (such as alimony and child support), student loans, and debts incurred through fraud or other improper means.

For more information on Timeline Of Bankruptcy In Florida, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (727) 538-4188 today.