Filing for bankruptcy can be a good idea if you are facing enormous amounts of debt that you are unable to pay. However, making the decision to file for bankruptcy can be overwhelming. You may even feel like you are a failure for even considering it.
However, sometimes bankruptcy is a necessary step, and a Leesburg bankruptcy lawyer can handle the entire process from start to finish to make it as stress-free for you as possible.
We understand how daunting the bankruptcy process can be. However, we can examine your situation and help you understand what options you have and if bankruptcy is the best solution. Call Bogin, Munns & Munns today at (352) 728-3773 for a free review of your case.
Common Types of Bankruptcy
According to the United States Courts, there are several different types of bankruptcy that individuals can file, depending on the specifics of their situation: the most common types are Chapter 7 and Chapter 13.
A Chapter 13 bankruptcy, according to the U.S. Courts, is called a wage earner’s plan. With this type of bankruptcy, you have the opportunity to repay part of all of your debt over three to five years, according to the terms you propose to the creditor. In no situation is the terms of the repayment plan to extend beyond five years, and the law forbids creditors from pursuing money through collections.
The benefit of pursuing this type of bankruptcy over Chapter 7, which we cover below, is that people are able to keep their homes rather than foreclosing to repay debts. It also allows you to reschedule secured debts like mortgage payments or car loans and extend them over the three to five years you are repaying your debt. The other benefit is that Chapter 13 consolidates all of your debt, so you only make payments to a single trustee, who then distributes payments to the different creditors.
A Chapter 7 bankruptcy is where you do not file a plan to repay your debt. It is a liquidation bankruptcy that wipes out your unsecured debts like medical bills or credit cards. The trustee sells all of your nonexempt assets and uses the income from those sales to pay some or all of the creditors. If you do not have any nonexempt assets, your case is called a no-asset case, and the creditors will not receive any repayment of your debt.
The court system does always approve a Chapter 7 bankruptcy if the debts are primarily consumer, rather than business debt. In situations where the debt is entirely consumer debt, the courts sometimes see a Chapter 7 bankruptcy as taking advantage of the system to walk away from debt.
A Leesburg bankruptcy lawyer can help you understand which type of bankruptcy is best for your situation. Call Bogin, Munns & Munns today at (352) 728-3773 for a free case review.
To consult with an experienced bankruptcy lawyer serving Leesburg, call 855-686-6752
Meeting Qualifications for Bankruptcy
To quality for bankruptcy, you must meet the eligibility requirements set forth by the U.S. Courts. To qualify for debt relief under a Chapter 7 bankruptcy, you cannot have had any type of bankruptcy case dismissed because of failure to appear in court or comply with court orders. You are also required to have received credit counseling from an approved credit counseling agency within the previous 180 days.
Your eligibility for Chapter 7 also depends on your income. The more disposable income you have, the less likely it is that the court will allow you to file for Chapter 7. To determine whether you qualify based on income, the court will assess whether your current monthly income is less than the median income for a household of your size in the state. If it is less, you generally qualify for Chapter 7.
The U.S. Courts also establish eligibility for filing for Chapter 13 bankruptcy. To be eligible for this type of bankruptcy, you must have no more than $394,725 in unsecured debt like personal loans or credit cards. You also cannot have more than $1,184,200 in secured debts, which include debts like mortgages and auto loans. The filing of a Chapter 13 suspends any foreclosure proceedings, which can be beneficial if the bank was in the process of foreclosing on your home. Pausing any collections and foreclosure proceedings can potentially free up enough of your income so that you can make your mortgage payments and avoid losing your home.
Leesburg Bankruptcy Lawyer Near Me 855-686-6752
How a Leesburg Bankruptcy Lawyer Can Help
Debt does not have to control your life. You have options, even if it means filing for bankruptcy. A lawyer who has experience with cases like these can offer you advice on how to proceed and guide you through the complex process from start to finish.
Here are some specific ways that a bankruptcy lawyer can help:
Prepare and File Your Paperwork
The paperwork that accompanies a bankruptcy can be overwhelming. However, a bankruptcy lawyer has experience with the paperwork and can prepare and file your paperwork on your behalf.
Keep Track of Deadlines
There are deadlines during the bankruptcy process, and if you miss a deadline, there could be consequences, such as having your case dismissed or unnecessarily delayed. A bankruptcy lawyer is familiar with the rules and procedures and can ensure you do not miss any deadlines.
Represent You at Hearings
Every bankruptcy has at least one mandatory hearing, the 341 meetings of creditors. There may also be additional hearings you are required to attend. Your lawyer can represent you at hearings and offer you advice to prepare you for hearings you are required to attend.
If you are thinking about filing for bankruptcy, our team is here to help. We can examine your case and offer you advice on what steps you should consider to get out of debt once and for all. For a free case review, call Bogin, Munns & Munns at (352) 728-3773.