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The filing of bankruptcy may offer immediate relief by:
Burton J. Green has been providing counseling and representation in bankruptcy for over 20 years. I understand the needs of people in financial difficulties for which bankruptcy may offer significant benefits. While resort to bankruptcy may not be appropriate in all situations, consulting with an experienced bankruptcy attorney will provide you with the insights and advice necessary for you to make an informed and appropriate decision if, and what type, of bankruptcy may be appropriate for you. Burton J. Green also has the experience necessary to help you to navigate through the intricacies of the bankruptcy process in the event that you decide to file for bankruptcy. The purpose of filing for bankruptcy is to relieve pressure and anxiety resulting from mounting debts and the inability to repay them. Bankruptcy was created to give individuals a fresh start. There are two major types of consumer bankruptcy, chapter 7 and chapter 13. An attorney with extensive experience in the area of bankruptcy can guide you through the laws and the myriad of documents necessary to successfully complete the bankruptcy process and obtain a discharge of debts under the bankruptcy code. Burton J. Green has handled hundreds of bankruptcy cases. Here is a brief explanation of the benefits from the two major bankruptcy proceedings available to consumers: Chapter 7 and Chapter 13.
Chapter 7 is designed for individual debtors with financial difficulties that do not have the ability to pay their existing debts. Under chapter 7, a person filing bankruptcy - the “debtor” - is entitled to exempt a certain amount of property that would otherwise be taken control of by the bankruptcy court. In fact, with proper advice and advance bankruptcy planning, and using the exemptions allowed by law, many debtors may be able to keep everything that they own. However, when there is a large estate (all of a debtor’s property is called the “estate”) the bankruptcy court, acting through an individual called a “trustee,” will take possession of that property. Still, a debtor will be able to use that debtor’s exemptions in order to retain many items needed for a fresh start. The trustee then liquidates the remainder of the property and uses the proceeds to pay the debtor’s creditors according to the priorities of the Bankruptcy Code. The purpose of filing a chapter 7 case is to terminate a debtor’s personal obligation to repay debt, referred to as obtaining a discharge of debts. If, however, you are found to have committed certain kinds of improper conduct described in the Bankruptcy Code, your discharge may be denied by the court, and the purpose for which you filed the bankruptcy petition will be defeated. Even if you receive a general discharge of debt, there are certain types of debt that are not discharged under the bankruptcy law which means that you will remain obligated to repay those debts. In general, these non-dischargeable types of debts include certain taxes, student loans, alimony and support payments, criminal restitution, and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs. Under certain circumstances, you may keep property that you have purchased that are subject to valid security liens of creditors who financed the purchase. I can explain the options that are available to you that will affect the dischargeability of the debt.
Chapter 13 is designed for individuals with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. Chapter 13 also provides individuals who may have fallen behind in payments on secured debts, such as mortgages or car loans, a way to keep those properties and stop foreclosures or repossessions. You are only eligible for chapter 13 if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code. Under chapter 13 you must file a plan with the court to repay your creditors all or part of the money that you owe them, using your prospective future disposable earnings. The period required to repay your debts can be any number of months up to a total of 60 months (5 years). Your plan must be approved by the court before it can take effect. Under chapter 13, unlike chapter 7, you may keep all your property, both exempt and non-exempt, as long as you continue to make the payments under the court approved plan. After completion of payments under your plan, the unpaid portion of your debts are discharged. Some debts, however, such as alimony and support payments, student loans, certain debts including criminal fines and restitution and debts for death or personal injury caused by driving while intoxicated from alcohol or drugs, and long term secured obligations will not be discharged. An experienced bankruptcy attorney can often ensure that the repayment plan meets all of the minimum requirements of the bankruptcy code, determines the correct prospective income to be used in the plan and lasts no longer than is absolutely necessary.
Under the Bankruptcy Reform Act of 2005, an income test, called the Means Test, is now used to determine whether a debtor will be able to file a Chapter 7 bankruptcy case or will be required to file a Chapter 13 case and make payments under a repayment plan. This means test makes predetermined calculations using your average income for the 6 month period prior to the filing of your bankruptcy case to arrive at your disposable income. Under this test your 6 month averaged income is compared to a federal standard of expenses for the average family similar to your own in the area in which you reside. The means test uses many different factors to determine your disposable income. After adding in all of the available variable expense values unique to each case, the means test provides a determination of whether a debtor’s disposableincome falls below the federal expense level, in which case the debtor is eligible to file a Chapter 7 case, or falls above the federal expense level, in which case the debtor will be required to file a Chapter 13 case and submit a repayment plan. The length of the plan depends on many factors, but mainly the interplay between a debtor’s prospective disposable income and the total amount of debt required to be repaid.
DISCLAIMER Burton J. Green is licensed to practice law solely in the State of Florida. This office cannot give legal advice on this site. The information contained in this web site is a simplified explanation provided for educational purposes only and the reading of this information does not establish an attorney-client relationship. It is not intended as legal advice and should not be construed as such. The law of each state may vary as well as the rules and procedures of each county. This is an advertisement and you should seek legal counseling before acting upon this information. If you need legal advice regarding Florida or federal law, please call my office to review the specific facts of your case at 321 784-4957, toll free 1-866-784-4957, or email me at bgreen14@aol.com.
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