Bankruptcy protection gives debtors a fresh start. But before filing, it is important to know the common mistakes people make during the process.
Not Being Truthful
The means test is the first step to filing bankruptcy. It consists of several financial questions that will determine if you can pay your creditors. If you don’t mention all of your income or assets, your case could be dismissed. A bankruptcy lawyer can help you make sure everything is presented correctly.
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
Filing for divorce is a stressful process and it can often happen during a time of great financial strain both individuals. This financial strain may cause both individuals to consider filing for bankruptcy. The big question is should you file before or after a divorce?
The first thing to understand is how bankruptcy and divorce can affect each other. Since distributing assets and liabilities occurs based on each individual’s income, a divorce cannot be finalized until after a bankruptcy is complete. Also, keep in mind that bankruptcy courts handle your filing based on your marital status. If you are still married, separated, or already divorced, it will affect your bankruptcy filing.
Filing Bankruptcy Before a Divorce
Buoyed by an improving economy, businesses across South Florida reported a lower rate of bankruptcy filings through the first quarter of 2015 compared to the year prior.
According to a report published by the US Bankruptcy Court for the Southern District of Florida, 59 businesses filed for Chapter 11, down from 87 in the first quarter of calendar year 2014. Through the worst years of the financial crisis, the average number of bankruptcy filings for South Florida businesses edged even higher.
Growth in South Florida’s hospitality and real estate markets is responsible for the majority of the decline in business bankruptcy filings. But, industry experts are careful to note, high-performance in any sector of the economy, particularly in the real estate industry, is open to some variance. South Florida real estate is often characterized as a roller coaster ride, full of ebbs and flows that could reverse the decline in bankruptcy filings seen over the past several years.
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