Filing for bankruptcy is probably one of the things your parents told you to never do. However, sometimes throwing in the towel is the only option you feel that you have left.
If your first thought is not to file for bankruptcy because you don’t want to lose your home, you may be in luck. One of the good things about Florida is the homestead exemption law. This law allows many homeowners to keep their homes even after they file for bankruptcy. There is a lot more to the law than just keeping your home, so be sure to read about it before making any rash decisions.
After you have done some research, you must ask yourself several questions before deciding to file for bankruptcy in Florida.
What is Your Financial Situation?
If you’re having trouble budgeting your money, one of the easiest ways to decide whether or not you should file is to take an inventory of your assets, including liquid assets, retirement funds, stocks, bonds, etc.
Their total added value should be less than the money you owe before you can even consider filing for bankruptcy.
Once you have figured out the total value of your entire assets, ask yourself a couple of questions about your finances and the payments you make on a regular basis. These questions can include:
- Do you know how much money you actually owe?
- When making payments, do you scrape by on the bare minimum?
- Are you paying for many of your home items and necessities with a credit card only?
If you have answered these questions with a yes or don’t know how much money you actually owe your lenders, you may need to look into filing for bankruptcy.
Chapter 7, Chapter 11, and Chapter 13 Bankruptcy
There are different kinds of bankruptcy, so knowing all of your options can help you make a better educated decision about your financial situation.
- Chapter 7 bankruptcy – This is the most common form of bankruptcy filing. It allows much of your debts to be forgiven and results in asset liquidation. There are many assets that are exempt from being repossessed, so be sure to read which assets are exempt. There are also certain debts that cannot be ‘forgiven’, such as alimony or student loans.
- Chapter 13 bankruptcy – This filing method is a great option for someone who feels they may be able to make their payments in three to five years. It will allow the lenders to create a new repayment plan for the individual, and will let them keep their home or other assets like a vehicle.
- Chapter 11 bankruptcy – This option is for businesses or corporations, but can also be for those who are drowning in excessive debt. If you are a business owner filing for bankruptcy, this route can give you the chance to buy some time and save your business by organizing some of the debts you need to pay off.
Professional and Qualified Bankruptcy Attorney
Whatever the case may be, filing for bankruptcy may not be your first choice but it can be what you need to save yourself from financial distress. At the Law Office of Kelley & Fulton, we want you to know how important it is to have legal counsel at your side during this difficult journey. If you contact us today at 561-491-1200, we can help you through our extensive experience and qualifications.