Many Florida residents, including yourself, may assume that filing for bankruptcy is a choice. In most cases, you would be right. However, what if you are informed that your creditors are petitioning for your bankruptcy? Can they do this?
Florida residents who are trapped under a pile of debt may be looking at different bankruptcy options in order to rid themselves of a financial burden. Though many options are available, today we will be taking a look at Chapter 7 bankruptcy.
Many people in the United States suffer from overwhelming medical expenses, stemming from an unexpected injury, medical diagnosis or other ailment. According to a CNBC report, medical debt is the number one cause of bankruptcy in the United States. Approximately 2 million people every year suffer from the effects of medical expenses, and another 643,000 people file for bankruptcy as a result of medical debt.
When you file for Chapter 7 bankruptcy, there are several items that must be addressed before your case is completed and your debt is dismissed. Once you are deemed eligible to file for Chapter 7, you must take the mandatory credit counseling course and file your bankruptcy documents with the court. The trustee appointed over your case will then schedule a meeting of creditors, also referred to as a 341 hearing, sometime between 21 and 40 days after the bankruptcy petition is filed. It is important that you understand what goes on during the meeting so that you can be prepared to answer any questions that may come your way.
You may have been told that you can lose some property if you file for a Chapter 7 bankruptcy. This information may have dissuaded you from seeking relief. However, it is important for you and other Florida residents to understand exempt and non-exempt bankruptcy assets, so you can make an informed decision.
A Chapter 7 bankruptcy may be the best option that Miami residents who are struggling with debt have at re-establishing themselves financially. Through the discharge of certain debts, filers are able to get out from under their many liabilities and be able to use utilize more of their personal resources to getting back on top of their money management. It is for this very reason why Chapter 7 remains the most popular form of personal bankruptcy (the American Bankruptcy Institute reports that through the second quarter of 2018, over 63 percent of all non-business bankruptcy filings fell under this chapter).
Filing for bankruptcy may be just what you need to do to get your finances in order and otherwise regain control over your affairs, but you can also count on your credit score taking a serious hit after you do so. At Kingcade Garcia McMaken, we are well-versed in the methods many people use to start rebuilding credit after bankruptcy, and we have helped many clients navigate this and many other bankruptcy-related matters.
The main reason many business owners file for bankruptcy in Florida is that they have personal debts intertwined with their business debts. If this sounds familiar, then you may want to file for Chapter 7 liquidation bankruptcy in addition to, or in place of, settling your business debts in other ways.
If you are like a lot of people facing serious financial struggles in Florida, you might not know that you have a choice when it comes to which type of bankruptcy plan might be able to help you get out from under your mound of debt. There are actually two common forms of bankruptcy available to consumers and each has times when it may be the better option.
In order to achieve a fresh start after filing for Chapter 7 bankruptcy, it is important for people in Florida to stay current with their financial obligations, during and after their cases. This includes filing their taxes on time and paying any applicable liabilities. Failing to do so could have serious implications on their cases, as well as on their financial futures.