Florida Attorney Informing Clients About Bankruptcy Facts
Filing for Bankruptcy is a legal right afforded to debtors under the Constitution of the United States, Article I, Section 8, Clause 4. The founding fathers, concerned about the use of 'debtor’s prisons’ wanted to ensure that these types of punishment would not be possible in the United States.
Although bankruptcy laws have been revised on numerous occasions over the years after this policy was implemented, federal bankruptcy laws are still available to most people who are deep in a financial crisis. It is crucial that you learn the facts about bankruptcy from a knowledgeable bankruptcy attorney before you make the decision to file.
At the law office of Darren K. Edwards, we can help you make the decision to file for bankruptcy by educating you about the bankruptcy facts and dispelling the fictions that many people often believe. Contact us today to set up a free confidential consultation to see how we can help you.
Experienced Broward County Personal Bankruptcy Lawyer
Call 954-315-3822 for a free initial consultation.
There are three types of bankruptcy proceedings that pertain to individual debtors, and they are Chapters 7, 13, and 11.
Chapter 7
A Chapter 7 liquidation proceeding is available to individuals, partnerships and corporations. The debtor is allowed to keep exempt assets.
For individuals filing bankruptcy in Florida, the exemptions are primarily determined by Florida law. They include the debtor’s homestead property (subject to a cap of $125,000.00 in equity, if the debtor has owned the real property less than 1,215 days). A debtor is able to exempt from creditors up to $1,000 of value in a single motor vehicle and a $1,000 of his or her miscellaneous personal property. A debtor’s interest in any professionally prescribed health aids or money paid into a Prepaid Post-Secondary Education Expense Trust Fund are exempt. Certain other assets, such as the cash surrender value of life insurance policies, annuity contracts, IRA’s and pension plans, may be exempt under Florida law.
All of the debtor’s non-exempt assets are subject to be turned over to the Chapter 7 bankruptcy trustee, so they can be converted to cash with the proceeds being distributed to creditors. Attorney Edwards can help you file all the necessary paperwork and represent you at the hearing to make sure you obtain a fresh start.
Chapter 13
A Chapter 13 bankruptcy or “wage earner reorganization” is available only to individuals who have consistent income. A debtor must file a plan that provides for payment to creditors over a period of up to five years. Chapter 13 can permit a debtor to reinstate a home mortgage which is in default and can also stop IRS collection efforts while payments are being made. A debtor in Chapter 13 can retain non-exempt real estate and personal property. Our office can help you decide if this is the appropriate method you should use by evaluating your financial circumstances and future goals.
Chapter 11
A Chapter 11 reorganization is available to high-debt individuals who are not able to qualify for Chapter 13 but are seeking a reorganization of their debts. Chapter 11 is also available to businesses. Due to higher court fees, reporting requirements and legal fees involved in a Chapter11, it is seldom used by individuals. However, it may provide individuals and businesses with an opportunity to reorganize their debts and make arrangements to pay all or a portion of the debts. It may also allow a company to sell the business, while obtaining protection from creditors. A Chapter 11 filing generally provides more flexibility than a Chapter 13 reorganization for individuals.
Darren K. Edwards, P.A., is a debt relief agency helping people get a fresh new start under the rules of bankruptcy. If you need assistance filing for Chapter 7 or Chapter 13 personal bankruptcy, please contact our office to schedule a free consultation. We accept Visa, MasterCard, Discover and American Express. Payment plans are available.
Representing and educating clients in the tri-county area since 1988 about bankruptcy facts
Darren K. Edwards, P.A.
110 E. Broward Boulevard, Suite 1700
Fort Lauderdale, FL 33301-3500
