Bankruptcy laws were created to relieve people who have gone through a bad divorce, lost their job, have mounting medical bills, a disability, or have been a victim of identity theft. If you are in any of these situations and your drowning in your mortgage or car payments then it may be time to talk with a Bankruptcy Attorney Fort Lauderdale.
The goal of Bankruptcy Law is to allow the debtor to have a fresh start and the creditors to be paid. The most common forms of bankruptcy filed is Chapter 7 and Chapter 11. Chapter 7 is the most common form of bankruptcy in America. It governs the process of liquidation under bankruptcy laws however; an individual is allowed to keep exempt property. A business has to cease operation and sell all assets to pay back creditors. A corporation or partnership has to be dissolved.
An example of exempt property is cloths, household good, and an old car. Property that can be claimed as exempt is different in each state. All other assets are sold to pay creditors. Chapter 7 bankruptcies stay on a credit report for ten years starting on the date the petition was filed.
Chapter 11 governs the reorganization of debt and is predominantly used by businesses but is available to individuals as well. Under Chapter 11 the debtor can remain in control of business operations. Chapter 11 allows a number of mechanisms to be used to restructure its business including retaining new loans. If the business is not able to pull out of its financial woes then the business will be handed over to the creditors. Chapter 11 bankruptcies stay on a credit report for seven years starting on the date the petition was filed.
Not all debt is created equal. Each state is different when it comes to discharging debt. Some common debt that can’t be discharge by filing bankruptcy is spousal and child support, alimony, most student loans, and some taxes.
If you don’t see a way out from under your bills it’s time to talk with an attorney. A good Bankruptcy Attorney in Fort Lauderdale can help you decide if filing bankruptcy is the right move for you.