A: Bankruptcy is a process that lets people who cannot afford to pay their debts have them forgiven. The end result of a Bankruptcy is a Bankruptcy Discharge. There are different types of bankruptcies for people in different financial situations. The best way to know which Bankruptcy is best for your unique debt situation is to speak to an Attorney and make an informed decision. At The Mobile Attorney we offer a FREE consultation WHEREVER you are. Call us today for your FREE in-home consultation.
A: Bankruptcy is not for everyone. The best way to find out if a Bankruptcy is a good and viable option is to speak to an Attorney. Bankruptcy may not be an option for many of you reading this FAQ. If you are only struggling to pay one (1) or two (2) debts, a debt settlement/negotiation may be a better solution to your debt problem. At The Mobile Attorney, we will help you assess your debt and make an informed decision as to what solution is most doable for you.
A: At The Mobile Attorney, we focus our Bankruptcy practice to Chapters 7 and 13. A Chapter 7 Bankruptcy is a Liquidation, and results in the forgiveness of most unsecured debts. Chapter 13 is a Monthly Payment Plan to the Bankruptcy Court, and can be used to correct arrears on secured debts.
A: Secured Debt is a debt that is attached to a specific piece of property. The Creditor in a Secured Debt has a Security Interest in the collateral that secures the debt. For example, a Car Loan is secured by the Car. If you do not pay your car loan, the bank can repossess your car. An Unsecured Debt is any debt that does not have a Security Interest. Unsecured Debts include credit cards, medical bills, personal loans and other similar debts.
A: When a Bankruptcy is filed, your property no longer belongs to you. What used to be your property goes into what is called the "Bankruptcy Estate." The good news is that, under the Bankruptcy Code, there are many different ways to "exempt" or protect your property from the Bankruptcy Estate. Each state has its own exemptions from the Bankruptcy Estate.
A: In Florida, there are four (4) major exemptions that apply in almost every single case.
A: Under Article X Section IV of the Florida Constitution, your Homestead property is exempt from Collection Action. This means that you can keep your Homestead Property in any kind of Bankruptcy that you file in Florida. What makes Florida special is that the Homestead Exemption is unlimited. You can keep your Homestead and it does not matter how much equity you have in your home. Your home must meet the requirements of being a Homestead under Article X Section IV of the Florida Constitution. Aside from that, the only requirement to protect your Homestead in a Bankruptcy is that, if you have a Mortgage, you are current on your Mortgage payments.
A: In a Chapter 7 Bankruptcy, you can only keep your Homestead property if you are current on your mortgage. However, in Chapter 13 you have multiple options to save your Homestead. Chapter 13 allows you to apply for a Mortgage Loan Modification. If your Mortgage Modification is not approved, you can choose to catch up on your Mortgage payments by paying the arrears inside of the Bankruptcy as well as the regular Mortgage payments through your Chapter 13 Plan.
A: At The Mobile Attorney, we know that most people interested in filing a bankruptcy are financially struggling. Because of this we allow all of our clients to make payments in flexible installments. We will never pressure you into paying more than you are able to. We allow you to pay what you can when you can. However, because the Bankruptcy is indiscriminate and forgives all your debts, we need to be paid in full prior to the filing of your case.
A: It depends on the Chapter of Bankruptcy you file. A Chapter 7 Bankruptcy usually takes between four (4) and six (6) months. A Chapter 13 Bankruptcy takes between three (3) and five (5) years of making monthly payments.