Bankruptcy Overview

Chapter 7, Chapter 13, and Chapter 7 for Business in Fort Lauderdale

When crushing debt is making your life a nightmare, and there appears to be no solution, the federal government has passed laws allowing you the opportunity for a fresh financial start.  The laws regarding bankruptcy are in chapters; the different types of bankruptcy are called by their chapter they fall under in the code.  Each one is for a specific situation.  In 2005, the requirements for bankruptcy were made more stringent, and more documentation is required, both from the individual filing and their attorney.  We at McCue Law Firm have found that most of the clients who come to see us still qualify for bankruptcy.  We are glad to help our clients solve serious financial problems and guide them through the process of bankruptcy filing.

Types of Bankruptcy

There are several types of bankruptcy, and the one most commonly filed is Chapter 7 or "liquidation" bankruptcy.  This is the form of bankruptcy in which you become free of your consumer debt, including credit cards, unsecured loans, medical bills and others.  There are certain types of debt that cannot be eliminated through Chapter 7, including some taxes, student loans and back child support or alimony.  However, when the consumer debt is discharges, most individuals find that they have enough money to pay their remaining debts and keep on track, rebuilding their credit.  Most people use this type of bankruptcy.

Chapter 13 is often the best form of bankruptcy for those who do not qualify for Chapter 7.  It is also a good option when you property that you do not want to lose through liquidation.  In a Chapter 13, your unpaid debts are paid off over a 3 - 5 year period in one payment to the trustee each month.  This allows you the time to get a mortgage modification or other solution, and frequently the amount you owe is greatly reduced.  By the time you finish paying, you usually have paid only a percentage of the outstanding debt you acquired over time.

Chapter 7 for Business is business liquidation.  When a business is no longer viable, it still has assets, such as furniture, equipment, and any other asset that has been part of the business.  In a Business Chapter 7, these items are liquidated and the list of creditors paid a specific percentage of the amount and you are released from further obligations.  This allows you to move forward and start something new without worry about owing for your old business.

No matter what your situation is, when crushing debt is the problem we can help.  We urge you to contact us as soon as possible, so we can help you get back on track financially.

Contact a Fort Lauderdale Bankruptcy Lawyer from our firm today.