The most common types of bankruptcy are Chapter 7 bankruptcy and Chapter 13. Under one of these chapters individuals may stop foreclosure, may eliminate debt, are provided protection from creditors, and may obtain a fresh start.

If you are considering bankruptcy, you are not alone. Due to the economic downturn many individuals have had to seek bankruptcy protection. The key to getting through the process quickly and efficiently is working with a bankruptcy attorney. Our firm provides guidance, information and representation to people in Sarasota and Manatee Counties that are filing for Chapter 7 or Chapter 13 bankruptcy.

Types of Bankruptcy

Chapter 7 bankruptcy: Chapter 7 bankruptcy allows people to have their debt discharged if they meet eligibility requirements, complete counseling, and pass the means test to qualify for chapter 7 relief. Once a Chapter 7 bankruptcy is filed, the Debtor may have to go through liquidation unless the Debtor can exempt all of their property. During liquidations, people’s assets and property are sold and the proceeds are distributed among the debtor’s creditors. Chapter 7 is still available for individuals who are looking to eliminate debt such as credit card debt, medical bills and foreclosure deficiency judgments. There are certain debts that may not be dischargeable in chapter 7 bankruptcy and that is why individuals considering bankruptcy should consult a bankruptcy attorney . Chapter 7 bankruptcy is a relatively short process that from the date the bankruptcy petition is filed may take approximately 4-6 months.

Chapter 13 bankruptcy: This is a type of consumer bankruptcy that is commonly pursued by people who are struggling with debt, but make too much money to qualify for Chapter 7 bankruptcy.

Under Chapter 13 bankruptcy, individuals work with a court-appointed bankruptcy trustee and their creditors to create a reasonable debt repayment plan. This debt repayment plan is based on their disposable income available after deducting reasonable and necessary living expenses. The necessary living expenses are based on Internal Revenue Service guideline standard expenses which are used by the U.S. Trustee program and the Bankruptcy Code. Once the Trustee approves the expenses and the plan for repayment, the bankruptcy court may confirm the plan of repayment. This gives people a time span of 3 to 5 years to repay their debt to their creditors and helps people avoid foreclosure and liquidation.

If you are consumed by debt and need to discuss a possible solution call today for a FREE consultation. Please contact Attorney Cynthia Riddell at 941-365-7171 today.

For many people bankruptcy may provide the relief necessary to get your financial life back on track.