When a debtor is facing financial hardship and struggling to keep up with his monetary obligations bankruptcy may provide relief. There are many different types of bankruptcy filings and a debtor should always consult a qualified Tampa bankruptcy lawyer before taking any action. The Tampa bankruptcy attorney can help the borrower determine which bankruptcy chapter is most appropriate and provide legal advice. Typically, a debtor will have to choose between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy. In a Chapter 13 the debtor creates a payment plan and pays back the creditors in monthly installments. On the other hand, Chapter 7 is a liquidation bankruptcy, which means the debtor’s assets will be sold in order to pay the debts owed, instead of the debtor making monthly payments.
Bankruptcy is federal law; however, the states determine which property may be exempt from the bankruptcy. Exemptions play a very important role in bankruptcy proceedings and should always be considered prior to filing for bankruptcy protection. Exemptions are particularly important when a Tampa bankruptcy attorney assists a debtor with a Chapter 7 bankruptcy. When property is exempt it is not sold to repay creditors and remains the property of the debtor. Thus, the more property that is exempt, the more property the debtor will be able to hang onto during the bankruptcy.
Most states allow a borrower to exempt at least a portion of household goods, pension accounts, automobiles and property held as a primary residence. Fortunately, Florida is very generous with its permitted exemptions, which may benefit debtors seeking Chapter 7 protection in Tampa. Florida allows more types of property and higher portions of the property to be exempt than most other states.
A Tampa bankruptcy attorney should carefully review the Florida statutes on property exemptions and compare them with the property owned by his client. If most of the property the debtor owns is exempt a Chapter 7 bankruptcy may be the appropriate method to solve the debtor’s financial crises. Conversely, if a significant portion of the debtor’s assets are not exempt under Florida guidelines the debtor may want to file for a Chapter 13 bankruptcy instead.
If you are overwhelmed with debt and unable to satisfy your monthly financial obligations Florida Law Group may be able to help. One of our seasoned Tampa bankruptcy lawyers can review your debts and assets with you to determine which type of bankruptcy may be most helpful to you. If you decide to file for bankruptcy our Tampa bankruptcy attorneys can submit all the paperwork on your behalf and navigate the bankruptcy through the court system. If you have questions about filing for bankruptcy call us today for help.
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