When debtors file for chapter 13 bankruptcy, they must create a repayment plan to pay off some or all debts over the course of a five-year period. Some individuals find that their situation remains unchanged, and they are able to successfully complete their repayment plan. However, others may find themselves in a difficult position where financial circumstances have changed, and they are no longer able to make payments according to their original repayment plan. Unexpected job loss, unforeseen emergencies, or even disability can leave them wondering if they have the […]
Many homeowners facing bankruptcy wonder if they can protect their home’s equity, which is the value of their property minus the balance of their mortgage. Fortunately, Florida’s homestead exemption exists to protect the equity in your home, and by taking advantage of this exemption, it is possible to protect your nest egg. Below, we’ll discuss more about the importance of the Florida’s homestead exemption in bankruptcy and outline the details homeowners should know.
How Does the Bankruptcy Homestead Exemption Work?
If your home is worth more than the balance of your mortgage, then you […]
The path from personal injury to bankruptcy can be a difficult one. Often injuries sustained can render an individual unable to work or earn as much income as they previously did, and personal injury settlements can be insufficient to cover mounting medical expenses.
Many clients may find it surprising to know that they are not alone in these difficult circumstances, and often wonder what options they have for personal injury and bankruptcy.
The Wide Prevalence of Personal Injury
In today’s modern workplace, accidental injury is a common occurrence. So much so that 3,007,300 occupational illnesses and […]
In bankruptcy, it is essential to understand secured versus unsecured debts. Secured debts generally involve property whereby the creditor has a lien on that property such as car loans and mortgages. Whereas unsecured debts, by contrast, are not secured by any collateral like credit card debt, medical bills, student loans, alimony, and personal loans.
Understanding Secured vs Unsecured Debt
While bankruptcy eliminates your liability for unsecured debts, it doesn’t eliminate the creditor’s vested interest in the property. Consequentially, lenders can still enforce their lien and repossess the property.
One of the most popular questions asked by bankruptcy filers is, “Will I lose any of my assets in bankruptcy?” The short answer is, “No,” but keep reading anyway.
Your assets come into play more in a Chapter 7 bankruptcy than a Chapter 13 because the Chapter 7 trustee’s focus is on the value of your non-exempt assets, whereas the Chapter 13 trustee’s focus is on your household disposable income.
What are your “non-exempt assets?” Under Florida law, certain of your property is protected from creditors and, by extension, the bankruptcy trustee. For instance, […]
If you are deciding to close your business and file for business bankruptcy, you may be wondering how this decision will affect your finances, particularly your credit score. If you are personally liable for a business debt, then a business bankruptcy will affect your credit score. Your liability depends on several factors including, what type of business entity you have, whether you signed a personal guarantee for business debts and your company’s tax liability.
Business Entity Type
It is essential to examine the structure and entity classification of your business to determine […]
Getting a divorce is a stressful and painful process that is only made more difficult when coupled with ongoing financial problems. It’s crucial that you understand how bankruptcy and divorce are affected by one another as you decide which options are best for you. One issue of importance is the timing of bankruptcy filing relative to divorce. Below, we’ll examine a few factors worth considering when deciding if it’s best to begin the bankruptcy process before or after a divorce.
The type of bankruptcy you want to file is one […]
If you are considering filing for bankruptcy while owing past due HOA (homeowner association) fees, it’s vital that you know how this financial obligation affects the bankruptcy process. If you are behind on your HOA dues, a homeowner’s association lien can be placed on your home, and the HOA has the right to sue you to recover past due fees.
Filing for bankruptcy may allow the home to be preserved and control the HOA fees. This typically means that you will have to catch up on your missed HOA payments if you […]
Being overwhelmed by debt that seems insurmountable is not an easy place to be. If you are in student loan debt and are also considering bankruptcy, it’s important to learn about your options and not give up hope. Getting student loan debt discharged in bankruptcy is difficult, but not impossible. In fact, student loans may be dischargeable if they cause undue hardship.
The Brunner Test
The relationship between bankruptcy and student loans is a complex one. In trying to better understand these complexities and determine whether it’s possible for your student loan debt […]
The bankruptcy means test is an important aspect to understanding which chapter filing of bankruptcy is most likely to fit your particular situation. This test determines the income level—the “financial means”—of any individual seeking to file bankruptcy. The means test formula was originally designed to ensure high-income earners file Chapter 13. It is also now used to determine if your income is low enough to qualify you for filing Chapter 7 bankruptcy.
How Does the Test Work?
Do you have enough monthly disposable income after paying your expenses in order to pay back your […]