Bankruptcy’s negative reputation prevents both individuals and businesses from obtaining relief from debt. One of the most pervasive bankruptcy myths is the idea that bankruptcy will devastate the filer’s credit for decades.
At LSS Law, we are here to tell you that bankruptcy is not an end. We have supported individuals and business owners who became overwhelmed with debt after life-altering events such as terminal illnesses, natural disasters, and unexpected stock market crashes. Others have made poor financial choices, and bankruptcy allowed them to begin again and use what they learned to develop a fail-safe strategy. In fact, some of our country’s most legendary entrepreneurs, politicians, and artists filed for bankruptcy before achieving fame and success.
If you are struggling to make ends meet due to mounting debt, we are ready to help you find a solution. Call our dedicated bankruptcy attorneys in Fort Lauderdale at today.
At LSS Law, we help clients file four different types of bankruptcy: Chapter 7, 11, 12, and 13. While each has its own advantages and drawbacks, all four trigger an automatic stay of collection attempts and allow the filer to regain control over their finances. We will recommend a chapter depending on your current situation, long-term goals, occupation and income, type(s) of debt, and available assets. Here is a brief overview of each.
Chapter 7, commonly referred to as liquidation bankruptcy, is best for those who have very few non-exempt assets (i.e. property that can be sold to cover unsecured debt). Both individuals and businesses can file Chapter 7, but total disposable income must not exceed a certain amount.
The court will appoint a trustee to evaluate your assets and determine which property is non-exempt. The proceeds from liquidating these non-exempt assets will then go to your creditors. One common myth about Chapter 7 is that the trustee will take all of your possessions, but most filers can keep their vehicle, household items, clothing, and even a portion of the equity in their home. These possessions are called exemptions.
Our Fort Lauderdale bankruptcy attorneys aim to protect the property you need and value most. If you have non-exempt assets you would prefer to keep, we can recommend another form of bankruptcy (such as Chapter 13) to better suit your needs.
Unlike Chapter 7, Chapter 13 is a form of debt reorganization. Filers avoid liquidation by creating 3-5-year payment plans with their creditors. This type of bankruptcy is appropriate for those who have a steady income and more valuable assets.
After filing Chapter 13 and completing the 3-5-year plan, you will likely be able to remove liens from real property. The court may issue a loan cramdown, which lowers the principal balance of remaining unsecured debts.
Traditionally, Chapter 11 has best served large businesses and corporations. It is the most expensive and complex chapter of bankruptcy, and small businesses that couldn’t qualify for any other chapter have filed for Chapter 11 and failed to create a successful debt reorganization plan.
However, the Small Business Reorganization Act of 2019 adds Subchapter V to Chapter 11. Effective February 19, 2020, small businesses can file a streamlined, cost-effective, and advantageous form of Chapter 11 that allows them to stay in business while negotiating reasonable payment plans with their creditors. At LSS Law, our bankruptcy lawyers in Fort Lauderdale have an in-depth understanding of how Subchapter V will work, and we look forward to helping small businesses file with unprecedented potential for success.
Chapter 12 is a relatively new form of bankruptcy. Geared toward family farmers, Chapter 12 takes seasonal needs and production processes into account, allowing qualified individuals to create an effective debt-reorganization plan without having to liquidate their vital assets.
If you are thinking about filing for bankruptcy, having an attorney by your side to help guide and support you will be in your favor. Our lawyers are legal experts who will be able to provide you with valuable legal and financial advice that will help you to make better and more informed decisions regarding your financial state. We understand the importance of ensuring that each case receives the unique attention that it requires, and our bankruptcy attorneys will go above and beyond to make sure that you are on the right track.
Ways that a bankruptcy lawyer can help you include the following:
Contact our bankruptcy attorneys in Fort Lauderdale today to learn more information and to schedule a free consultation.
At LSS Law, we have extensive experience with all four types of bankruptcy in Broward County. We understand the benefits and drawbacks of each, as well as the legal hurdles you will need to overcome within each chapter. If you want to file a successful bankruptcy that paves the road for a secure future, get in touch with our legal team as soon as possible.
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