Everyone experiences some type of financial difficulty over the course of their lifetime, whether it be due to an unexpected illness or injury, sudden loss of a job or an unfortunate miscalculation of expenses versus income. In some cases, resolving the situation may be as simple as gathering your thoughts and bills and reevaluating the family budget. Others may require a loan or another form of financial assistance. In the most extreme cases, though, bankruptcy may be the your answer.
Often considered the simplest and most straightforward form of bankruptcy, Chapter 7 is generally faster and less expensive than its counterparts. From acquiring a Bankruptcy lawyer Vero beach to closing the case, the process of filing for Chapter 7 generally takes around 4 months. Detailed paperwork for this type of bankruptcy includes explaining all assets, debts, income and expenses.
The court will examine these factors when deciding if your case is eligible for Chapter 7. Household size will also be figured in. Despite the amount of debt you are facing, the court will allow you and your family enough income to cover necessities and basic living expenses, including shelter, utilities, transportation and other such requirements. If you have approximately $100 left of your income after all things have been considered, you are deemed eligible for Chapter 7.
If Chapter 7 is not within reach, you may be eligible to file for Chapter 13. Most cases of Chapter 13 bankruptcy evolve because the person filing exceeds the household income requirements for Chapter 7 and has greater financial means to repay their debts. Any foreclosure or repossession attempts on the part of your creditors will be halted after you file for Chapter 13. Your income will be evaluated and your debts will be consolidated. As with Chapter 7, your family will be allotted enough money each month to make ends meet. The remainder of your income will be distributed among your creditors.
Depending on your situation, your Bankruptcy lawyer Vero beach may suggest creditor negotiation. This will allow you to avoid bankruptcy; however, there are a number of drawback to this scenario. A lump sum must be paid to your creditors up front, as well as additional taxes and fees.
Each family presents a unique case, and the outcome will be original to their own situation. Your Bankruptcy lawyer Vero beach will advise you on whether or not bankruptcy is right for you.