Filing for bankruptcy in Royal Palm Beach can be a hard decision to make. It isn’t a decision made without guilt for being in debt in the first place. Many debtors will not use bankruptcy unless they have no other solutionto their problem. Before you file bankruptcy, you should attempt to make negotiations with creditors. If you have tried to negotiate with creditors to no avail, then bankruptcy may be your only way out of mounting debt. When you file bankruptcy in Royal Palm Beach, the laws protect you from harassment by creditors. They are forbidden from contacting you about the debt.
You have the choice of several types of bankruptcy. The two primary types of bankruptcy are Chapter 7 and Chapter 13. Debtors commonly will try for Chapter 7 bankruptcy because it is quicker and straightforward. Chapter 7 involves the selling of non-exempt assets to pay non-exempt debts and distributing the proceeds among creditors for unsecured debts. Unsecured debts include loans, credit cards, or medical bills. Non-exempt assets vary by state, but they can include valuable collections, family heirlooms, second vehicles or houses. However, new laws have changed who qualifies for Chapter 7.
To be eligible for Chapter 7, you must pass an income test. if you have enough income to pay secured debts, you do not qualify for Chapter 7 bankruptcy. Chapter 13 is a type of debt reorganization. Since you will be making an effort to pay back debts, you will not have to give up assets. The court designs a new payment plan that you can easily manage with three to five years to pay off debt. Chapter 13 also does not impact your credit as bad. Chapter 11 is reserved for corporations or business with unsecured of about $336,000 and $1 million in secured debts. You are required to pay costly fees, but you can still proceed with certain business operations. It works similar to Chapter 13 allowing you to pay back creditors.
It is advised that you seek the services of a general bankruptcy lawyer before you consider bankruptcy. Getting rid of debt is your main goal and you want it done right.
