The rising cost of healthcare is one of the top three reasons people file for bankruptcy, even if they have health insurance. If you’re struggling to pay your medical bills, continue reading to learn about Chapter 7 and Chapter 13 bankruptcy.
Pre-bankruptcy Counseling
Federal law mandates that you must attend ninety minutes of approved credit counseling before you’re allowed to file for bankruptcy. The cost differs from provider to provider, but it’s often around $50.
With the current economic situation, it’s common to hear a bankruptcy lawyer talk about a business filing for Chapter 11 bankruptcy.
What is Chapter 11?
It allows the debtor to liquidate or restructure debt, and it usually involves larger amounts of money than Chapter 7 or 13.
When it comes to bankruptcy, Chapter 13 is the second most common filing behind Chapter 7, according to a leading bankruptcy lawyer.
What is Chapter 13?
It lets you sort out your finances while protecting you from creditor harassment and wage garnishment at the same time.
According to a Chapter 7 Lawyer in Tampa, in order to file for Chapter 7 bankruptcy, you must first pass the means test.
What is the Means Test?
It compares your income with the official median income for households in the state of Florida.
Filing bankruptcy is complicated and confusing to most people, especially when there are several myths about the process.
Myth: You can decide which debts to list in your bankruptcy filing.
Truth: You must list all debts, even those owed to family and friends.
The decision to file for bankruptcy isn’t easy, but it is one of the best options for getting out of debt.
Filing for bankruptcy is complicated and below are reasons you need a Chapter 7 lawyer in Tampa.
Deciding on the Right Bankruptcy Filing
The American dream of home ownership has become a nightmare for thousands of Floridians. But you don’t have to face foreclosure proceedings alone; there are many ways to fight foreclosures and protect your assets. Savage & Villoch, your bankruptcy lawyers in Tampa, can help you plan the best alternatives for this stressful time.
Your alternatives depend on a thoughtful examination of your financial situation. Your attorney can guide you in the labyrinth of decisions to be made, such as whether your inability to make mortgage payments is short- or long-term and what relief programs apply to each situation, whether you qualify for a wide array of mortgage modification programs, or whether you should file for Chapter 7 or Chapter 13 bankruptcy protection. We can help demystify the process and let you know what to expect. Most of all, you are not alone in this stressful time.
Make sure you learn the specific options in your case. Such problems as “underwater” mortgages–those in which the home’s value has decreased–have their own set of alternatives and relief programs. You may have also heard about the “show me the note” defense, which many people have used to defend against foreclosures by showing the court that the loan was made pursuant to fraudulent practices. It’s a tricky defense, and whether it applies to you will have to be investigated by your attorney. Mortgage modifications are often fought tooth-and-nail by lenders, so it is in your best interests to have a knowledgeable advocate getting you the best modification possible.
Everyday, people contact attorneys to file Chapter 7 bankruptcy. While there are several reasons for doing so, the top five are:
Although the idea of filing bankruptcy might not be pleasant, there is a good chance that filing bankruptcy is exactly what you should do to get back on track. Dealing with financial issues can be difficult, but hiring a Tampa Chapter 7 lawyer to help you file bankruptcy could be life changing. These are a few signs that it’s time to look into bankruptcy as an option to get your finances on track.
1. You’re Getting Constant Collection Calls
Few things can be as unsettling and disruptive as receiving constant collection calls from your creditors. Plus, it can be embarrassing to receive calls when you’re around friends and family, and getting these calls while you’re at work can cause trouble for you at work. Once you file bankruptcy, however, you can help avoid these problems because your creditors will no longer be allowed to contact you via phone.
What happens to investors’ investments when companies go bankrupt? Well, it depends on the bankruptcy chapter filed, whether Chapter 11 reorganization or Chapter 7 liquidation. Investment recovery may be an option.
In Chapter 11, a company attempts to get rid of its debt in order to continue operating, even trading publicly during the proceedings, and turn the company around to profitability; whereas in a Chapter 7, the company goes out of business and attempts to sell assets to repay debts to creditors and investors.
Secured creditors, those with collateral backing their loans or investments, are given priority repayment status. In other words, they get paid back before unsecured creditors such as credit cards. Bondholders usually recover their principal investment with interest but stockholders, as owners of a piece of the company, may or may not recover their investments.
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