Affordable bankruptcy in Sarasota by experienced bankruptcy lawyers in Florida

 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.