Bankruptcy:

■   Eliminate All or Most of Your Debt Quickly and Easily

■   Quick Relief From Harassing Phone Calls and Collection Letters

■   Immediate Peace of Mind

HOW TO ELIMINATE YOUR DEBTS QUICKLY AND EASILY THROUGH BANKRUPTCY IN JUST A FEW QUICK AND EASY STEPS:

STEP ONE :   Meet an experienced attorney for a free consultation. The Attorney will diagnose your case and provide you with a plan to eliminate your debt.

STEP TWO:   Work with your attorney during the bankruptcy process. Your case will be given the highest level of attention.

STEP THREE:  Receive a discharge in as little as six months and walk away with a fresh start.

If you are facing a financial challenge, it is essential that you meet with an attorney to explore your options before doing anything else. Delaying, ignoring the situation or taking actions that you think will help often result in additional and costly financial expense that could have been avoided if you met with an attorney early on.

Making the decision to file bankruptcy is a tough one. Many of us are forced to come to the unpleasant conclusion that after having tried all options to pay off their debts, there is no other solution left but bankruptcy. However, even though many people think that bankruptcy is easy to do on their own, the fact is that the bankruptcy process can be complex. Add the fact that most people know very little about filing bankruptcy, and it is easy to see why a qualified attorney is essential for even the simplest of cases.

Bankruptcy is a legal process that allows people to eliminate all or most of their debts and/or to pay some or all of their debts over time. When people decide to look into bankruptcy and they have bankruptcy questions such as which type is right for them, it is essential that they consult with an attorney who practices bankruptcy law.

In a Chapter 7 bankruptcy case, you are allowed to keep “exempt” property, while your remaining non-exempt assets are liquidated by the court and the proceeds distributed to your creditors and lenders. Once your eligible assets have been sold off and your creditors are paid off, then you will be relieved of your debt obligations. Some people who have a steady income and are still able to pay a portion or all of their debts over time usually resort to filing Chapter 13 bankruptcy. In a Chapter 13 case, you will typically get to retain certain exempt assets, like your car or house, which you might otherwise lose through the bankruptcy process. What’s considered exempt vs. non-exempt property varies from state to state, so make sure you refer to your state’s bankruptcy laws to find out what you are able to keep. The bankruptcy exemptions in Florida, for instance, may be different from the applicable laws in other states, so keep this in mind when you’re in the process of filing Chapter 13. For business owners that are struggling to pay off their creditors and do not qualify for Chapter 13 bankruptcy, they usually resort to filing either Chapter 7 or Chapter 11 bankruptcy, also known as reorganization. In a Chapter 11 case, for example, you stay in control of your business and keep certain assets while a court-appointed trustee oversees the operations of your business.

Keep in mind that filing bankruptcy does not wipe out all your debts. As a general rule, you will still be responsible for paying alimony, child support, student loans, any fines or penalties, or recent back taxes. In addition, there are immediate consequences when you file personal bankruptcy. Filing Chapter 7 will stay on your credit report for up to 10 years, and for Chapter 13, it stays on your credit for seven. So on top of negatively impacting your credit, filing personal bankruptcy may result in more long-term consequences such as higher interest rates on new loans and big-ticket purchases, or higher premiums on your insurance.

In spite of the consequences of filing bankruptcy, many people consider it their last-resort option, especially when they have exhausted all other means of finding debt reliefs such as enrolling in a debt management plan, taking out a consolidation loan, or even debt settlement. In Florida, as in most states, one of the first steps in filing bankruptcy is to pass the means test. Established by the government to make sure that consumers who are able to pay back their debts did not abuse the bankruptcy system, the means test will compare your monthly income against the state’s median family income for a family your size. If your income exceeds the state’s median income, you may not be eligible to file personal bankruptcy. Once you do pass the means test, there are several things you can do to ensure that the process goes on smoothly. Make sure you’re ready to submit all the necessary forms when filing your bankruptcy petition such as records of your assets and liabilities, copy of your current tax return, stubs, deeds, automobile titles, your current income, or a statement that you received credit counseling from a government-sanctioned organization within six months before you filed.

As you may have noticed from the information we supplied, bankruptcy laws are complex and varies depending on what state you live in. Filling bankruptcy may be one of the most important decisions you will make, one that has the potential to give you a fresh start. Before going the route of bankruptcy, it is wise to explore alternative debt relief options. We can help you get a free debt relief analysis and savings estimate at no obligation.

TYPES OF BANKRUPTCY:

There are two main types of personal bankruptcies under the Bankruptcy Code.

CHAPTER 7:

Chapter 7 bankruptcy, sometimes called a straight bankruptcy, is the simplest and easiest type of bankruptcy. It is available to most people, and is in fact the most common type of bankruptcy for consumers. Chapter 7’s main feature is that it provides people with an immediate fresh start by eliminating most or all of a person’s debt. The debt relief is quick and only takes about four to six months. Moreover, despite what you may have heard about the new bankruptcy laws and the new income test, aka the Means Test, the vast majority of potential bankruptcy filers will qualify for a Chapter 7.

The legal process in a Chapter 7 allows debtors to keep their “exempt” property, while their remaining non-exempt property is liquidated by a trustee to pay creditors. However, in most cases there are no non-exempt assets and most people don’t have to give up any property. Although most cases are no asset cases, potential bankruptcy debtors should never file their case without an attorney. Absent legal advice and proper planning, it is entirely possible that debtors would be forced to give up property that they would otherwise have been able to keep with the correct pre-bankruptcy planning.

CHAPTER 13:

Chapter 13, also called a Reorganization, is essentially a three to five year payment plan that allows you to pay back some or all of your debt. Chapter 13 bankruptcy results in a plan to repay all or part of your debt. If there is any debt left over at the end of the five year plan, it will likely be wiped out. Chapter 13 is used most often to save a house from a foreclosure sale. You can use Chapter 13 to “strip” a second mortgage under certain circumstances. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Another reason to file Chapter 13 instead of Chapter 7 is if you do make too much money to file a Chapter 7. Chapter 13 bankruptcy is available to debtors with regular income. A business cannot file Chapter 13. In addition, there are upper limits on the amount of the individual’s secured and unsecured debts in Chapter 13 cases. Again, it is essential that debtors seek legal assistance when filing a Chapter 13. Debtors should never file a Chapter 13 on their own.

BANKRUPTCY FACTS:

1.   Despite the new laws established in 2005, most people still qualify for a Chapter 7 bankruptcy under the new income test known as the Means Test.

2.   Although most taxes cannot be wiped out in bankruptcy, many times they can be, either in a Chapter 7 or Chapter 13. Don’t assume your taxes cannot be included in a bankruptcy.

3.   Most Chapter 7 cases are no asset cases and you will not have to give up property.

4.   Never listen to friends or relatives about what you should do before filing bankruptcy. In most cases listening to friends or relatives will make your case messy at best.

5.   DO NOT liquidate your retirement account in the hopes of avoiding a bankruptcy. Most retirement accounts are protected and most people end up filing bankruptcy after having depleted their retirement. Consult with an attorney before doing anything.