Every year thousands of people and businesses experience financial problems. One possible solution to prolonged financial stress is to file for bankruptcy, which allows for debts to be paid and gives the person or business filing certain legal protections. Depending on the situation of the entity that files, there are various kinds of bankruptcy, divided into chapters, which may help by providing a plan to keep certain important assets while outstanding debts are satisfied. A Fort Walton Beach bankruptcy attorney can give specific information to clients based on their financial troubles.
New bankruptcy judge discusses filings in Florida
A recently appointed bankruptcy judge was interviewed in the local news, and she commented on the high volume of cases throughout the state of Florida. She noted that the state has a history of attracting risky investments in real estate and business. The middle district of Florida had the third highest number of bankruptcy filings for several years straight. Some of the most common reasons she has seen for financial problems include job losses, divorces, and illnesses with their associated medical bills.
Some of these business ventures or the people who start them will end up eventually filing for bankruptcy protection at some point. This is crucial because bankruptcy can function as a way for them to escape these kinds of dire financial situations after a serious failure. One example given in the interview was a new process for Chapter 13 filings that allows an individual to catch up on their mortgage within a few years while they are protected from any further action. Without bankruptcy, the lender or mortgage holder can simply demand payment for the entire amount that is due all at once. There was also mention of an experimental program that works in a similar way to help people pay off student loan debts.
How will your bankruptcy attorney help?
Bankruptcy courts have their own rules that are very different from other federal or state courts. It certainly requires expertise to navigate this system properly, and that is why many Fort Walton Beach lawyers specialize in bankruptcy cases exclusively.
One example is Chapter 7 bankruptcy, where a person in debt allows their property or other assets to be sold to creditors and certain kinds of debt like credit cards or personal loans can essentially be discharged.
Chapter 13 bankruptcy is helpful for individuals who have a steady job and want to keep their home. They can make regular payments over the course of a few years to satisfy debts while paying their mortgage.
There are also other forms such as Chapter 11, which is available to businesses, corporations, and partnerships. This process essentially allows for a corporate restructuring to satisfy debts while the business continues to function normally.
A bankruptcy attorney can guide you through this process
If you want to learn more about the process for filing for bankruptcy with the assistance of an attorney contact ASG Legal. They can provide specific advice based on your financial situation or business needs, along with possible solutions.