Bankruptcy certainly isn’t the first choice to get rid of your debts, but you can certainly explore this legal option in Sarasota, Florida. if you have exhausted all your other options for meeting your financial obligations and still cannot afford your debt. Affordable bankruptcy Sarasota can often reduce or eliminate your debts, save your home, and keep creditors from harassing you. In Chapter 7 bankruptcy, your assets are essentially sold to settle debts with creditors. Certain assets, though, are excluded, including:
·
Tools of trade
·
Part of the equity in your home
and automobile
·
Pensions
·
Social security
·
Personal items
·
Clothing, and
·
Any other public benefits
To qualify for Chapter 7
affordable bankruptcy Sarasota, you will have to pass the Means Test, wherein
your average monthly income for the past six months should be less than the
median income of the size of your household in the state of Florida. If you
qualify, then a federal bankruptcy court-appointed impartial trustee will sell
all your non-exempt assets, and pay the proceeds to the creditors. Some assets
are non-exempt, and will be sold to pay your creditors by a federal court-
appointed impartial trustee, after which your debts are considered discharged.
Non-exempt assets include:
·
Property other than your primary
residence
·
Bank accounts
·
Collectibles or other valuable
items
·
Investment accounts
·
A second vehicle
However, if the calculations show
that you have enough disposable income left over to begin repayment, the court
may rather decide Chapter 13 as the eligibility for your bankruptcy. Under
Chapter 13 affordable bankruptcy Sarasota, you will be allowed to reorganize
your debts, and pay your obligations over a period of three to five years under
the supervision of a court trustee. All your outstanding debts will be
consolidated, and you will repay it through an affordable monthly EMI. The
repayment plan must provide for a substantial payback to the creditors, at
least equal to what they would have received under other forms of
bankruptcy.
Claims or debts fall into the
below three categories under Chapter 13:
Priority: These debts include tax
obligations, alimony, and child support
Secured Debts: These debts are secured by
collaterals. Like in the case of mortgage, home serves as collateral. With a
car loan, it is usually the vehicle. The creditor has the right to seize the
collateral if secured debt is not paid.
Unsecured Debts: These are not secured by
collateral. Credit card bills are the most common example of unsecured debt.
Medical bills are also considered unsecured debts.
The debts are discharged in the
same priority order under Chapter 13 affordable bankruptcy Sarasota, viz.
priority debts are discharged first, followed by secured debts, and finally
unsecured debts are discharged. Once a Chapter 13 bankruptcy is initiated, any
home closure proceedings are ceased. Moreover, creditors' collection activities
must stop as soon as bankruptcy is filed. If you continue to receive harassment
calls for visits by your creditors, you can contact Recovery Law Group, who
will sue your creditors for violating the Automatic Stay, as per the US
Bankruptcy Code. Recovery Law Group has experienced bankruptcy lawyers who will
help you all through the complex bankruptcy law landscape.
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