Bankruptcy Lawyers in Ormond Beach FL and Ormond Beach Foreclosure Attorneys

Common events that push individuals to the brink of bankruptcy include the loss of a job, a divorce, a death in the family, a medical emergency, or some type of catastrophic event that diminishes the financial security of a person, or external events, including market down turns that can damage a business/corporation.

Ormond Beach FL Bankruptcy Lawyers

Bankruptcy proceedings are legal actions involving a person, or business entity that is unable to repay outstanding debts, and are handled by federal courts that follow the rules of U.S. Bankruptcy Code. The bankruptcy process begins with the debtor (person who owes money), or a representative of creditors (people who are owed money) filing a petition with bankruptcy court. All bankruptcy cases in the United States are handled through federal courts. Any decisions in federal bankruptcy cases are made by a bankruptcy judge, including whether a debtor is eligible to file, and whether they should be discharged of their debts.

Allocation of Debt Attorneys in Ormond Beach FL.

All of a debtor’s assets (economic resources) are evaluated and measured, and some assets may be used to repay a portion of the outstanding debt. The purpose of a bankruptcy is to release debtors from their debts, while giving creditors the opportunity to collect partial, or full repayment of those debt amounts. While bankruptcy actions will stay on a person’s credit for a number of years, they allow for much needed financial relief for individuals, or businesses that need to restructure to survive financial problems. Bankruptcy proceedings can allow for a fresh start to borrowing at some future date. Bankruptcy actions may prove to make a positive impact on the economy, allowing individuals and companies a second chance to access credit, after some type of debt repayment.

Common types of bankruptcy in Ormond Beach Florida.

The common types of bankruptcy actions most heard about include Chapter 7, Chapter 11, and Chapter 13. These bankruptcy proceedings may help individuals, but it is wise to contact a bankruptcy attorney in Ormond Beach FL to see if there are other ways to resolve overwhelming debt, as it will negatively reflect on a person’s credit report for 10 years from the date of filing the petition.

The most common advantage to filing a bankruptcy petition in Ormond Beach Florida is that debt collectors will have to stop harassing debtors with phone calls, letters, and potential lawsuits. Once an individual has filed a bankruptcy petition with the courts, all attempts to collect a debt by the creditors must stop. This action is an automatic stay, and creditors must cease actions for:

1) Repossession,
2) Wage garnishments,
3) Foreclosure,
4) Bank levies,
5) The constant never-ending harassing phone calls and mailings.

Means test.

A means test must be done to decide if an individual is eligible for Chapter 7 whereby debts will be forgiven, or Chapter 13 whereby debts are paid off monthly for a period of up to five years, if individuals fall under the median income for certain family sizes, and are not abusing the bankruptcy system. If individual income is higher than the state mandated median, a person may have to file a Chapter 13 bankruptcy action, because there is an ability to pay off incurred debt.
Chapter 7 bankruptcy Attorneys in Ormond Beach FL.

Chapter 7 bankruptcy is a means to “discharge” unsecured debt within a short period of time, and most of the time individuals would still be able to keep their cars and houses. Common debt that is discharged in this type of bankruptcy includes:

1) Credit card balances,
2) Personal loan balances, and
3) Medical bills for example.

There are certain cases that allow for IRS back taxes, and state taxes to be discharged.

Individuals who file for Chapter 7 will still be responsible for repaying the following types of debts after their discharge:

1) Child support and alimony,
2) Student loan debt,
3) Debts related to personal injury, or death caused by drunk driving,
4) Penalties related to violations of law,
5) Tax debts unless individuals meet exception criteria and any debt people do not list in petitions for bankruptcy filing.

Chapter 11 Bankruptcy Lawyers in Ormond Beach FL.

Businesses often file Chapter 11 bankruptcy, so they can reorganize, while remaining in business. Filing Chapter 11 bankruptcy in Ormond Beach Florida allows a company to create plans for profitability, cut costs, and find additional avenues to increase revenue. If a company has preferred stockholders they may still receive payments, but common stockholders will not. Repayment plans are often set up under the court’s supervision. In rare cases, individuals can also file Chapter 11 bankruptcy. Visit the Florida page to find a Ormond Beach FL bankruptcy attorney.
Chapter 13 Bankruptcy Lawyers in Ormond Beach FL.

Individuals who make too much money to qualify for Chapter 7 bankruptcy in Ormond Beach Florida may file under Chapter 13, also known as a wage earner’s plan. It allows individuals and businesses with consistent income to create workable debt repayment plans. The repayment plans are commonly done in installments over the course of a three- to five-year period. In exchange for repaying their creditors, the courts allow debtors to keep all of their property, including nonexempt property.

The steps debtors should take as they prepare for bankruptcy include:

• construction of a master list of all individual debts and assets to assist a debtor and a knowledgeable bankruptcy attorney to make a determination of which debts an individual wants discharged, and what assets should be maintained to protect and safeguard a person’s future livelihood, such as a house, or vehicle;
• avoiding application for additional lines of credit or maximized spending on current open cards, or personal loans close to the filing of a bankruptcy petition.
• do not pull money from retirement accounts because they are often untouched during the settlement discharge and individuals may need that funding later as they may be protected; and
• do not transfer assets close to the time of filing a petition because the court may discern this as a way to hide them.

Find a Bankruptcy Attorney in Ormond Beach FL.

Individuals should find a bankruptcy lawyer in Ormond Beach Florida who specializes in bankruptcy law to make certain they understand bankruptcy law protections for: 1) homestead; 2) insurances; 3) pensions; 4) public benefits such as disability; and 5) tools of the trade items.




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