Bankruptcy
Bankruptcy for Corporations and Individuals in Florida
Henry Ford filed bankruptcy after two failed businesses he held prior to successfully building the Ford Motor Company. Walt Disney and Abraham Lincoln filed bankruptcy. Bankruptcy is not the end of the world but a chance to eliminate debt and get a fresh start.
A small business, corporation or you as an individual may be facing overwhelming amounts of debt in a particularly challenging economy and looking to bankruptcy as an effective solution. Since 1999, Lanigan and Lanigan, P.L., has filedthousands of bankruptcies and in 2007 noted a gradual correlation seen between the foundering economy and an increased number of bankruptcies being filed.
By 2008, there was a marked spike in personal and business bankruptcies at Lanigan and Lanigan, P.L. Today, bankruptcy is common in Florida particularly within the construction- and real estate-dependent businesses and individuals struggling for survival in a turbulent real state and economic outlook.
In every situation there are different circumstances that led to overwhelming financial debt. Consult with Lanigan and Lanigan, P.L., to find out if bankruptcy and or foreclosure are an option to consider to relieve the personal and economic distress.
Bankruptcy Information:
Bankruptcy Options
Many individuals and businesses find effective solutions through filing bankruptcy. But there aren’t simple answers regarding bankruptcy because all cases vary greatly. There are two common types for individuals: Chapter 7 and Chapter 13; while Chapter 11 is for businesses. There are completely different scenarios and reasons that people and businesses select each and as many reasons for filing each type.
The bankruptcy filing process at Lanigan and Lanigan, P.L., guides clients through easy steps, with specific goals and direction allowing individuals and businesses to have a clean slate and a fresh start. Regardless of what the causes and effects that lead you to a bankruptcy, emotional turmoil can be put behind you. Credit card debt, medical bills, mortgage and business disasters can be included in bankruptcies and some assets protected by Florida bankruptcy law.
Within several months individuals and companies who file for bankruptcy can regain a stronger financial foundation with the guidance and legal evaluation that can be provided by Lanigan and Lanigan.
When you make the first call to the firm, think of life post-bankruptcy. Calm down, there are causes, there are remedies, and no matter how stressed out you are, it’s never as bad as you think it is. Your case is unique and not like any other business, friend or family member situation. Contact Eric and Roddy Lanigan to get the facts specific to your situation.
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Chapter 7 Bankruptcy
Here’s a look at each type of bankruptcy.
A Chapter 7 Bankruptcy may be a viable option for individuals who are paying the mortgage for their home on time, but don’t have money to keep up mortgage payments. Filing a Chapter 7 Bankruptcy can make your mortgage more affordable by reducing your total debt to help prevent a future foreclosure or delay it for several months.
Chapter 7 is known as a liquidation bankruptcy, unsecured debt may be discharged by an individual debtor in order to obtain a fresh start financially. This can be a quick and helpful option for people looking to get out from under the burden of debt.
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Unsecured Debts
Unsecured debts that may be discharged in a Chapter 7 bankruptcy include credit card debt, medical bills and debts where there is no property or product attached.
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Secured Debts
Secured debts including mortgages and car payments may be dischargeable in a Chapter 7 bankruptcy with some exceptions.
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Do You Qualify for Chapter 7 Bankruptcy?
There are some restrictions on Chapter 7 bankruptcy protection qualification including:
- You must live, have a residence or own property in the United States
- You must take and pass a “means test”
- You must enroll in credit counseling
- You must not have filed for a Chapter 7 bankruptcy within the past 6 years
Federal Bankruptcy Exemptions (Will NOT be taken in bankruptcy)
- Veterans Benefits
- Military Benefits
- Wages (Garnish percentage limited)
- Social Security benefits
- Civil Service benefits
Common Bankruptcy Exceptions to Exemptions (Will not be ELIMINATED through bankruptcy)
- Child support
- Alimony
- Taxes
- Secured loans
- Student loans
Property Exemptions
In the state of Florida there are generally few non-exempt items an individual would have to worry about losing. Disregard family, friends, associates who recant horror stories about having to relinquish furniture, TVs, electronics, computers, etc., relax. No one’s backing a truck up to your home to take away your things to sell to satisfy your creditors.
However, property exemptions exist in every state that clarify what items you own that creditors can and cannot take. What happens on occasions where you hear of people losing property is that they’ve voluntarily pledged the property as security for a loan and don’t make the payments. But in general, in Florida, creditors aren’t forcing the sale of your property to get every dollar they can or the shirt off your back.
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Pro-Se: Filing Without An Attorney
Filing bankruptcy without an attorney, known as Pro Se is not recommended by Lanigan and Lanigan. Filing Pro Se leaves individuals and businesses without the protection, direction and legal advice an attorney provides.
People lose cars, collections, family heirlooms, cash in bank accounts and are vulnerable in the trustee meetings because they DO NOT know the law. It’s a good idea to read a book about bankruptcy, however, not a good idea to base a family or business financial future that relies upon information that may be dated and cannot by any means prepare a person for court.
Bankruptcy law is complex and individuals and businesses should consult an attorney who can accurately–with full knowledge–file, manage and adhere to the complexities of bankruptcy law. An attorney knows process, can review all facts of a case, determine best practices based on each individual’s situation and provide legal counsel for the most positive outcome.
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Chapter 11 Bankruptcy
Chapter 11 Bankruptcy is business reorganization where corporations of any size plan to keep assets and reorganize debt in order to make payments more manageable to repay debt over time in order to stay in business.
While many attorneys will tell businesses to avoid a Chapter 11 at all costs, if there’s no alternative but a Chapter 11, then you want to talk about creating a successful reorganization so that the company can once again be a viable business entity.
The process of Chapter 11 provides a business a method for easing out of certain debts and return to becoming a more profitable company.
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Chapter 13 Bankruptcy
In short, in a Chapter 13 Bankruptcy, individuals get to keep property. Creditors receive less money than is owed. You, the debtor, offer creditors a payback plan within three to five years. This plan details all transactions and the length of time and payments that will occur.
Repayment starts 30 to 45 days later. Creditors cannot try to collect an individual’s debt except in bankruptcy court. The process takes from between three to six months.
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Bankruptcy Filings in 2011
Bankruptcy occurs in Florida and nationally among people of all ages and all income levels. Bankruptcy is an option and a process for many people to alleviate debt no matter how it has occurred.
According to The New York Times (source: Epiq Systems), the number of bankruptcy filings in June 2011 was 120,623 Americans–or an average of 5,483 per day nationally. The question for individuals and businesses is how to file bankruptcy and what type of bankruptcy is right for your situation.
It’s important to thoroughly and honestly discuss debt relief options with Lanigan and Lanigan, P.L. Learn about procedures, determine a timeline, a plan and what it will cost to manage your debt situation before making a decision.
An attorney’s knowledge can be a comfort in making choices during a bankruptcy of any kind. Find immediate insights and answers to ease the confusion that comes from not knowing the ins and outs of complicated bankruptcy law. Find out if a Chapter 7, a Chapter 11 or a Chapter 13 bankruptcy is an option for you by talking with Eric or Roddy Lanigan.
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