Tag: chapter 7 bankruptcy

How to File for Bankruptcy the Pain-Free Way in St. Petersburg

If you’re researching how to file for bankruptcy, then you’re likely in a financial situation requiring serious intervention. Before submitting the documents necessary to declare yourself bankrupt, you’ll need a plan to make the process as simple and painless as possible.

1. Learn About Bankruptcy and the Different Chapters

Before you learn how to file for bankruptcy, it’s important to know there are different chapters of bankruptcy in Florida. However, most people in St. Petersburg will likely file chapter 7 or 13. Chapter 7 eliminates most unsecured debts in a few months by giving up non-exempt property like houses or cars. Chapter 13 takes longer, usually a few years, but instead of relinquishing property, establishes a repayment plan to pay back the debt in monthly installments.

Certain citizens must complete a “means test” to establish which chapter of bankruptcy they qualify for. The calculation accounts for multiple aspects of the debtor’s financial situation, including income, and the amount of debt. If the debtor’s annual income is less than Florida’s median income for the size of their household, as long as the debtor meets other qualifications, they can generally choose chapter 7 or 13. If the income is higher than the median, the debtor must list expense deductions to identify the disposable income for the next five years. The test determines if chapter 7 or 13 is an option.

Once you determine which chapter is appropriate for your situation, you can begin gathering and completing paperwork.

Determine Exemptions

Federal bankruptcy code provides certain exemptions, but Florida code doesn’t permit many of the federal allowances. Instead, you can only use Florida state exemptions. There are federal “non-bankruptcy” exemptions you may be able to utilize, including wages, social security benefits, civil service benefits, and veterans benefits. If you’re uncertain what property is exempt, talk to an experienced attorney in St. Petersburg for assistance.

Go to Credit Counseling Before Filing

Before filing for bankruptcy, you must attend a credit counseling program approved by the St. Petersburg court district. Not every counseling agency is accredited by the court, and to fulfill your pre-filing requirement, you must receive a certificate from an approved source.

Gather and Complete Financial Paperwork

If you’ve researched how to file for bankruptcy, you’ve likely noticed that it’s not as simple as submitting a form and calling it done. Instead, the process requires fifty-plus pages of paperwork with forms listing debts, income, expenses, assets, and collateral. For Chapter 13, you’ll need to submit a repayment plan with your paperwork. You’ll also need to provide information regarding secured debts.

It is possible to do this yourself, but many people in St. Petersburg choose a local attorney to provide professional assistance when they want to know more about how to file for bankruptcy.

File Forms with the Court

After completing all paperwork, you can file the forms with the court. Then, you may need to meet with a court trustee. Filing stops liens, foreclosure, creditor harassment, debt collection, and more. Once the repayment process is complete, you’ll attend a pre-discharge session for credit education. Afterward, you’ll receive a discharge order from the court officially eliminating certain debts. From then on, you can resume your life in St. Petersburg.

Learning How to File for Bankruptcy? Call Berkowitz & Myer for Help

If you need assistance while learning how to file for bankruptcy, talk to an experienced attorney at Berkowitz & Myer. Call us at (727) 344-0123 or contact us online to schedule a consultation.

Bankruptcy: Important Things to Know About Chapters 7 and 13

Bankruptcy may be intimidating for those who are not familiar with the process. But with the help of a bankruptcy attorney in St. Petersburg, you can manage your debt and get back on the right foot. People who pursue bankruptcy often do so because filing can:

  • Protect your home from foreclosure
  • Stop debt collection attempts
  • Prevent utility companies from cutting off power and water
  • Give you more time to readjust your debts

Chapter 7 discharges your debt, but this does not include student loan debt. There are unique circumstances that exist for student loan debt, but largely, you are responsible for paying it off. If the debtor or their dependents are under undue hardship, they may be able to seek a discharge for their student loan debt.

Whether you file for chapter 7 or 13, you must fill out and complete all necessary forms. Everyone who files for bankruptcy must complete the necessary forms for the federal government, which may include:

  • Voluntary Petition for Individuals Filing for Bankruptcy
  • Summary of Your Assets and Liabilities and Certain Statistical Information
  • Statement of Current Monthly Income
  • Chapter 7 Means Test Calculation
  • Chapter 13 Calculation of Your Disposable Income

Florida Bankruptcy

In Florida, residents cannot use federal exemptions, and must instead use the state’s exemptions. Potential exemptions may include:

  • Homestead exemptions
  • Certain personal property up to $1,000
  • Up to $1,000 in motor vehicle equity
  • Up to $4,000 in personal property if not using the homestead exemption
  • Certain pension and retirement funds like 401ks and Simple IRAs

Your St. Petersburg bankruptcy attorney can go over the various exemptions available and help you determine which ones are applicable to your situation.

What You Need to Know When Filing for Bankruptcy

When you file, you must submit a repayment plan detailing your debts like child support, vehicle loans, mortgages, and tax liens and how you plan to repay them. A bankruptcy attorney in St. Petersburg can help you devise a plan that allows you to comfortably pay your debts. Unsecured debts, like medical bills and credit cards, must be less than $336,900 and secured debt, like mortgages, must be less than $1,010,650.

Filing for bankruptcy will leave a lasting impact on your credit; it will stay on your record for ten years. This can influence your ability to loan a car, rent a home, get a credit card, and more.

To speak with a bankruptcy attorney in the St. Petersburg area, trust Berkowitz & Myer. Call us today at (727) 344-0123 or contact us online to schedule a no-cost consultation.

Basics of Chapter 13—What You Need to Know

While many people are familiar with the term “bankruptcy,” significantly fewer understand what exactly bankruptcy is and what it entails. The information below is intended to help people who are just beginning to explore bankruptcy as a path to financial freedom better understand the things that they are reading. The best way to find out whether bankruptcy is right for you, however, is to discuss the matter with one of the St. Petersburg bankruptcy lawyers at Berkowitz & Myer as soon as you can.

Bankruptcy Petition

A bankruptcy proceeding begins when an individual or a business files a bankruptcy petition, which basically informs the court that the debtor is attempting avail himself or herself (or itself) of the provisions of the Bankruptcy Code. A bankruptcy petition will contain a variety of information, including the debtor’s name, address, the chapter under which the bankruptcy is being filed, the debts that are to be included in the bankruptcy, and the debtor’s income.

The Automatic Stay

The automatic stay is a court order that goes into effect the moment a debtor files for bankruptcy. It prevents creditors from taking actions to collect on a debt, including making phone calls, sending letters, repossessing property, foreclosing on a mortgage, or initiating a lawsuit. In addition, any lawsuits against the debtor will be put on hold for the pendency of the bankruptcy, unless the other party successfully moves to have the stay lifted with regard to a particular lawsuit.

Discharge

Discharge is generally the most obvious benefit of filing for bankruptcy. When debts are discharged, it means that the debtor is no longer under any obligation to pay them back. Many types of debts are regularly discharged in bankruptcy, including credit card bills, medical debt, unpaid rent, utility bills, certain tax debts, personal loans, business loans, and civil judgments.

Chapter 7

Chapter 7 is the most common type of consumer bankruptcy. It is known as a liquidation bankruptcy because it involves the liquidation of all of a debtor’s non-exempt assets in order to pay back creditors. In many cases, however, Chapter 7 bankruptcies are “zero asset,” meaning that debtors do not have any non-exempt property which can be sold. In cases like these, debtors are able to obtain a discharge without having to give up any of their assets.

Chapter 13

Chapter 13 is another type of consumer bankruptcy. Under Chapter 13, a debtor enters into a court-approved repayment plan that will last anywhere from three to five years. At the conclusion of the bankruptcy, most (if not all) remaining debts will be discharged. Importantly, in Chapter 13, debtors are protected from any collection attempts while they are making payments. For this reason, many individuals use Chapter 13 to keep their homes or other valuable assets while managing their debt.

Call Berkowitz & Myer Today to Schedule a Free Case Evaluation

If you are having trouble paying your bills in spite of earning a regular paycheck, you should speak to an attorney as soon as you can. At Berkowitz & Myer, we will review your financial situation at no cost to you in order to determine whether you may be able to benefit from filing for Chapter 13 or any other type of bankruptcy. To schedule an appointment with one of our experienced St. Petersburg bankruptcy lawyers, call our office today at (727) 344-0123 or send us an email through our online contact form.

Basics of Chapter 13—What You Need to Know

Bankruptcy Attorney St. Petersburg

While many people are familiar with the term “bankruptcy,” significantly fewer understand what exactly bankruptcy is and what it entails. The information below is intended to help people who are just beginning to explore bankruptcy as a path to financial freedom better understand the things that they are reading. The best way to find out whether bankruptcy is right for you, however, is to discuss the matter with one of the St. Petersburg bankruptcy lawyers at Berkowitz & Myer as soon as you can.

Bankruptcy Petition

A bankruptcy proceeding begins when an individual or a business files a bankruptcy petition, which basically informs the court that the debtor is attempting avail himself or herself (or itself) of the provisions of the Bankruptcy Code. A bankruptcy petition will contain a variety of information, including the debtor’s name, address, the chapter under which the bankruptcy is being filed, the debts that are to be included in the bankruptcy, and the debtor’s income.

The Automatic Stay

The automatic stay is a court order that goes into effect the moment a debtor files for bankruptcy. It prevents creditors from taking actions to collect on a debt, including making phone calls, sending letters, repossessing property, foreclosing on a mortgage, or initiating a lawsuit. In addition, any lawsuits against the debtor will be put on hold for the pendency of the bankruptcy, unless the other party successfully moves to have the stay lifted with regard to a particular lawsuit.

Discharge

Discharge is generally the most obvious benefit of filing for bankruptcy. When debts are discharged, it means that the debtor is no longer under any obligation to pay them back. Many types of debts are regularly discharged in bankruptcy, including credit card bills, medical debt, unpaid rent, utility bills, certain tax debts, personal loans, business loans, and civil judgments.

Chapter 7

Chapter 7 is the most common type of consumer bankruptcy. It is known as a liquidation bankruptcy because it involves the liquidation of all of a debtor’s non-exempt assets in order to pay back creditors. In many cases, however, Chapter 7 bankruptcies are “zero asset,” meaning that debtors do not have any non-exempt property which can be sold. In cases like these, debtors are able to obtain a discharge without having to give up any of their assets.

Chapter 13

Chapter 13 is another type of consumer bankruptcy. Under Chapter 13, a debtor enters into a court-approved repayment plan that will last anywhere from three to five years. At the conclusion of the bankruptcy, most (if not all) remaining debts will be discharged. Importantly, in Chapter 13, debtors are protected from any collection attempts while they are making payments. For this reason, many individuals use Chapter 13 to keep their homes or other valuable assets while managing their debt.

Call Berkowitz & Myer Today to Schedule a Free Case Evaluation

If you are having trouble paying your bills in spite of earning a regular paycheck, you should speak to an attorney as soon as you can. At Berkowitz & Myer, we will review your financial situation at no cost to you in order to determine whether you may be able to benefit from filing for Chapter 13 or any other type of bankruptcy. To schedule an appointment with one of our experienced St. Petersburg bankruptcy lawyers, call our office today at (727) 344-0123 or send us an email through our online contact form.

Could Your End-of-Year Bonus Cause You to File for Chapter 13 Bankruptcy?

For many people who are struggling financially, the holidays can be a stressful time. Some households rely on credit cards and others simply ignore financial issues until the new year begins. In either situation, early in the year, you may be wondering whether it is the right time to file for bankruptcy. The answer to this question will vary from case to case and the best way to decide the right timing for your bankruptcy filing is to discuss your specific situation with a skilled bankruptcy law firm.Bankruptcy Lawyer St. Petersburg

Income and the Means Test

There are many factors that can determine when the right time to file bankruptcy may be. One of these is how much income you have recently earned. This is important to determine which type of bankruptcy you will be able to file. For example, in order to qualify for Chapter 7 bankruptcy, you will need to pass something called the means test.

You cannot qualify for a Chapter 7 bankruptcy if the court decides you have enough income to pay your debts. The means test takes into account your income, your debts, and expenses and if you have too much disposable income, you will have to file for Chapter 13 bankruptcy instead of Chapter 7. Chapter 13 bankruptcy requires you to make payments toward your debts for up to five years before you receive a discharge, so Chapter 7 is often—but not always—a preferable option.

Your attorney can examine the income that will need to be reported on the means test to advise you whether you may be eligible for Chapter 7 or you will have to file under Chapter 13. There are many types of income will be considered by the court for the means test, including:

  • Basic wages, tips, and overtime
  • Commissions and bonuses
  • Social Security benefits
  • Rents and interest payments
  • Unemployment, disability, or workers’ compensation benefits
  • Retirement payments
  • Child support
  • Any other payments you receive to put toward household expenses

One important type of income to consider is a bonus from work, as many people receive these bonuses at the end of the year during the holiday season.

The means test considers income received during the past six months (excluding the calendar month in which you file). This means that if you received a bonus in the past six months (such as an end-of-the-year bonus), it could increase your income enough to disqualify you from Chapter 7 bankruptcy. This also goes for any cash gifts from your employer, clients, or other work-related sources.

A St. Petersburg Bankruptcy Law Firm Can Help You

You should always have an attorney who can evaluate all of the circumstances of your financial situation including income, debts, taxes, and more. Your attorney can then advise you of the best timing for your bankruptcy case. In some situations, Chapter 13 bankruptcy may be beneficial and/or necessary and the law firm of Berkowitz & Myer is here to help you. Please write to us using our online contact form or call our office at (727) 344-0123 to schedule your free consultation today.

Request a No-Cost Consultation

Please give us some information so we can schedule time to talk with you about your legal matter

Contact

    no-cost consultation: (727) 344-0123

    ADDRESS

    4900 Central Ave,St. Petersburg, FL 33707

    view on google maps

    St Petersburg Florida Personal Injury & Bankruptcy Attorneys

    © COPYRIGHT 2018 BERKOWITZ & MYER · ALL RIGHTS RESERVED

    site by rankings.io