Bankruptcy is often referred to as the “last resort” for a business or an individual, however it does not mean all hope is lost. There are many ways to handle each bankruptcy case and it is important to understand the fundamentals of the Florida bankruptcy process with the help of an experienced attorney.
Florida bankruptcy defined:
According to the Florida Bar, bankruptcy is a legal process in which consumers can eliminate some, or all, of their debts under the protection of the US federal bankruptcy court. Typically, cases end in either liquidation or reorganization of assets. Liquidation involves the sale of the debtor’s non-exempt property to pay off the creditors. Whereas reorganization is the process that involves the debtor reconstructing their debts to give a fresh start. This is a common practice for a business to adopt if their revenue has hit rock bottom. In a reorganization case, the company generally continues to practice business after the reorganization is complete.
What bankruptcy can and cannot do:
Bankruptcy is utilized to eliminate the legal obligation of debts. In many cases it can stop the repossession or foreclosure of your business or properties. Bankruptcy is also used to stop debt collection harassment, wage garnishment, or other activities pertaining to financial debts. Pertaining to credit, filing for bankruptcy will be reported on your credit for 10 years after the case (opposed to 7 years). Even after filing for bankruptcy many consumers are able to obtain credit after the filings. Generally, bankruptcy can not discharge student loans. In very few cases, bankruptcy can be filed only if the debtor demonstrates that payment of the debt “Will impose an undue hardship on the debtor and the debtor’s dependents.”
Are lawyers necessary?
When it comes to bankruptcy cases, it is best to have someone with knowledge and experience in the field. This complex matter includes laws on which bankruptcy chapters to file under, understanding exemptions, and protecting you under the federal laws for best your advantage. If the debtor is representing themselves and files incorrectly, unnecessary legal duties and obligations may follow. Bankruptcy fraud is recognized as a criminal act and can result in imprisonment or denial of the discharge of debts. Summed up, yes, lawyers are necessary when dealing with Florida bankruptcy.
At Cardillo Keith Bonaquist, P.A., we have a firm grasp of statutory law and governmental regulations pertaining to bankruptcy. Our transactions abide by local, state, and federal laws to ensure the best possible outcome for our clients. To schedule a bankruptcy case evaluation with our experienced lawyers in Naples, contact us today at 239-774-2229.