Personal finances have not been all that great during the last couple of years. Despite good intentions and trying various methods, things are only getting worse. At this point, it makes sense to schedule a meeting with a bankruptcy law attorney in Wellington, FL. and find out if filing for some form of personal bankruptcy is possible. Here are some of the things that the attorney will help the client understand.
Not Everyone Can File for Chapter 7 Bankruptcy
In the last couple of decades bankruptcy laws have changed. People who would qualify for a Chapter 7 bankruptcy in years past no longer meet the minimum qualifications. The bankruptcy law attorney in Wellington, FL. will explain how certain types of debts cannot be included in this type of action except under a narrow range of criteria.
To determine if the
client can seek this type of protection, the attorney will take a
close look at the types of debts involved. If they are all unsecured
debts, this approach is a possibility. If priority debts like back
taxes, past-due child support, and several other obligations are part
of the mix, considering another form of bankruptcy is in the best
interests of the client.
How Does a Chapter 13 Bankruptcy Work?
If the client does not
meet the specifications for a Chapter 7 bankruptcy, there’s a good
chance of being able to file a Chapter 13. This approach does not
settle debt withing a few months. Instead, the debtor is placed under
the protection of the court and tenders monthly payments to a court
trustee. The trustee distributes the funds to the creditors based on
a plan approved by the court.
The period may last
three or five years. Priority debts are settled first, then all or
part of the unsecured debt is paid. If any unsecured debt remains
outstanding at the end of five years, it is discharged.
If there seems to be no way to pay off debt get additional info from a bankruptcy attorney. It will not take long to assess the client’s financial condition, identify the best course of action, and file the proper documents with the court. Once that is done, the debtor will be on the way to a better financial future. You can take comfort in knowing that Sean I. Koplow is a foreclosure attorney who has consistently helped clients throughout Wellington, Royal Palm, and West Palm Beach, FL., protect their homes and other assets.
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