Common Bankruptcy Exemptions in Florida

However, it is not an easy task for an ordinary individual to carry on with the legal procedures of a Chapter 13. One should seek the help of a professional legal representative who can provide the right guidance regarding the court proceedings. One must be a careful while looking for a lawyer. Here are a few tips that one must follow while searching for a lawyer:

Filing for bankruptcy means that you cannot take on any additional debt for a while. Additionally, when you're filing for bankruptcy under Chapter 13, you're going to be making payments for the next 3 to 5 years, depending on your income level. It's also important to understand what exactly will happen to your assets when you file for bankruptcy.

If you are facing a foreclosure of your home or have had your wages garnished by a creditor or by the IRS, Chapter 13 bankruptcy can be a great way to reorganize your financial affairs.

This means that homeowners who file bankruptcy have rights during the foreclosure process that are safeguarded at least through the sale of the property. These rights may be guaranteed for even longer than that, depending on how the confirmation process of the auction works after the home has been sold by the courts. If there had been a bankruptcy, the lender may not just be able to sell the house and take it over right away.

Most types of personal bankruptcies for individuals are filed under the three main chapters of the Bankruptcy Code- Chapter 7, Chapter 11 and Chapter 13. Only the federal courts have exclusive jurisdiction over bankruptcy cases, which mean that it cannot be filed in a state court. Filing Chapter 7 bankruptcy allows the debtors to wipe down many debts by selling their secured assets and property to repay the creditors. Chapter 13 allows the debtors to repay the amount in better terms, i.e. lower or no interest for which a time-period of 3 to 5 years is granted. Chapter 11 bankruptcy allows a firm the opportunity to reorganize its debt to stay intact in the business and pay their debts through money earned in business.

This is another important question. Make sure that a bankruptcy attorney - not a paralegal - will go to court with you. As long as an attorney in the firm is familiar with your case, it it makes no difference who in the firm attends hearings with you. Emergencies happen to attorneys like they happen to you so if your attorney lets you know that someone else will be appearing with you at court, please try to meet the other attorney a day before the hearing.

Chapter 13 bankruptcy reform is what is truly needed to stem the time of the current foreclosure crisis. Even if the code were modified for a short period of time, it would give homeowners the opportunity to restructure loans that are subject to or already in foreclosure. As the law currently stands, a homeowner in Chapter 13 cannot alter the contractual terms of their loan. A homeowner can repay mortgage arrears over three to five years, however, the post-petition mortgage payment must be made pursuant to the original terms of the contract. Under several proposals to modify Chapter 13 bankruptcy, a homeowner would be permitted to restructure the loan.