Bankruptcy Attorneys in Port St. Lucie Provide Sound Financial Advice

Florida Bankruptcy Law Firm Helps You Weigh Your Options

Those who struggle with paying their debts may consider bankruptcy as a way to resolve a challenging financial situation. Debtors typically file bankruptcy to obtain a discharge, which will erase their debts so they no longer have to pay them.

Once the bankruptcy begins, an automatic stay takes effect, which prevents creditors from continuing collection efforts or suing the debtor to obtain a judgment without the bankruptcy court's permission. With very few exceptions, creditors won't be able to claim the debtor's future income or assets.

Types of Bankruptcy

There are two main types of consumer bankruptcy cases:

• Chapter 7, or liquidation bankruptcy. In return for having his debts discharged, the bankruptcy petitioner is required to turn over his property, except for certain exempt assets, to the bankruptcy trustee, who then sells the property and uses the proceeds to pay creditors. Many times there is not enough money to pay for anything above administrative costs, and the creditors receive little or nothing. The main advantage to Chapter 7 bankruptcy is that the debtor will emerge with no future obligations on his discharged debt.
• Chapter 13, or reorganization. This type of bankruptcy is most often used by individuals who have regular income but need to catch up on past due mortgage or car loan payments and want to keep their property. In Chapter 13, the debtor proposes a repayment plan to pay all or part of his debt over a period of three to five years. If the court approves the plan, the debts may be settled in the manner prescribed, even if the creditors are not in agreement. If the debtor follows the plan, he will not have to surrender his property to the bankruptcy trustee.

If you're saddled with debt that you're unable to pay, contact Treasure Coast Legal, bankruptcy lawyers who help individuals and families in and around Port St. Lucie deal with their financial problems. To find out what your options might be, contact our firm online or call 772-621-2898 to schedule an appointment today.