While filing for bankruptcy can feel discouraging, it could actually be a useful tool in regard to your financial stability. You are not required by law to work with a lawyer, but legal counsel can be valuable when you have to make major financial decisions.
When you work with a lawyer, you do not have to learn all about bankruptcy law, interpret the type of bankruptcy that is right for you, or file paperwork in federal bankruptcy court. A Eustis bankruptcy lawyer can take care of all of this for you.
Bogin, Munns & Munns can help you learn more about how to get started.
Working with a Lawyer to File for Bankruptcy
Filing for bankruptcy can give you a fresh start. You can be discharged from certain forms of debt and be protected from lawsuits from creditors. Depending on the type of bankruptcy that you file for, some of your assets may be sold to repay your debt, or your finances will be restructured to allow you to make repayments over time.
When you begin the process, a lawyer will ask you to share records of your income, your debt, and your personal finances.
Documents your lawyer may want to see when you file for bankruptcy may include:
- Your most recent paystubs reflecting gross, net, and year-to-date earnings
- A breakdown of your debt, including the amounts you owe and the names of your creditors
- Documentation of your assets, including real estate, vehicles, financial accounts, retirement accounts, trusts, and more
You may also need to show documentation of your expendable income and your spouse’s income. A lawyer can tell you more about the specific records required in order to get started.
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State Laws that Apply to Bankruptcy Cases
The idea of filing for bankruptcy may make you think that everything you own will have to be sold, but this is not necessarily the case. Various state laws may be relevant to your bankruptcy filing, and exemptions that allow you to hold onto certain assets are particularly important to understand. A lawyer will know about these laws and help you learn which laws may apply to your case.
For example, Florida notes that several different types of assets could be protected when you file for forms of bankruptcy that involve liquidation. Because the state understands that those in the middle of bankruptcy proceedings will need access to a home and transportation, you will likely not have to sell your home or vehicle in many circumstances.
The following exemptions may be relevant to your filing:
Florida Homestead Exemption
This law allows you to keep your home as long as your real estate does not exceed a certain acreage. In order to qualify, you must be able to show that this property is your residence.
Your home, condo, or mobile or modular home may qualify for this exemption. Florida’s homestead laws are detailed in Florida Statutes § 222.01 through Florida Statutes § 222.05.
Florida Vehicle Exemption
Florida law also allows you to exempt a vehicle after you file for bankruptcy. However, a single person is limited to claiming a vehicle exemption of no more than $1,000. For married couples who file for bankruptcy jointly, this amount is higher.
There are other exemptions that may apply to your case. A Eustis bankruptcy lawyer will be able to tell you about any and all state laws that may be relevant to your situation. Speak with a team member from Bogin, Munns & Munns today at (407) 578-1334 to get started.
Common Chapters of Bankruptcy
Bankruptcy typically proceeds according to two approaches: liquidation and restructuring. One of the most common forms of bankruptcy, Chapter 7, involves liquidation.
This means that some of your assets will be sold in order to repay your debt. With types of bankruptcy that involve restructuring, such as Chapter 11, a business or an individual can repay their debt over a period of time.
Some of the most common types of bankruptcy include:
Chapter 7
With this type of bankruptcy, you will typically need to take a couple of initial steps before you are permitted to file. You will have to go through bankruptcy counseling, and you can expect that your finances will be reviewed in detail. Those who file for Chapter 7 bankruptcy need to pass a “means test,” which is intended to weed out applicants who make higher incomes.
While Chapter 7 does involve the selling of your assets, not everything will have to be sold. In the state of Florida, your home, your vehicle, education savings, prescribed health aids, and other assets may be exempt.
Chapter 13
If you earn a regular income when you intend to file for bankruptcy, Chapter 13 may be appropriate. As with Chapter 11, this form of bankruptcy also allows you to repay your debt over time. You will not have to pass a means test, but you will need to provide documentation of your income and expendable income.
When you work with a lawyer, they will help you determine which form of bankruptcy is right for your circumstances.
Eustis Bankruptcy Lawyer Near Me
855-780-9986
Call Us Today to Learn How We Can Help
At Bogin, Munns & Munns, we understand that filing for bankruptcy can feel like a major undertaking. However, you can have a lawyer by your side to support you through the process. In many cases, a bankruptcy filing may grant you the time you need to recover your finances.
You can learn more about how a Eustis bankruptcy lawyer may be able to help. Call today at (407) 578-1334 to connect with a member of our team.
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