Posts made in June 2020

bankruptcy law

Pros and Cons of Filing for Chapter 13 Bankruptcy

Deciding whether you should declare bankruptcy is always very difficult. In addition to deciding whether or not you should file, you’ll also need to consider which type of bankruptcy is appropriate. This is typically either Chapter 7, Chapter 11, or Chapter 13 bankruptcy. Here are some of the top advantages and disadvantages to consider as you decide if a Chapter 13 bankruptcy and a Chapter 13 attorney in West Palm Beach, FL is best for you.

Disadvantages of Chapter 13

There are a number of disadvantages to filing for Chapter 13 bankruptcy. In general, here are the top ones to keep in mind:

Time – It can take up to five years for you to repay your debts under a Chapter 13 plan.

Living Lean – Debts need to come out of “disposable” income, which is what’s left over after the bare necessities are paid. Therefore, all extra earnings are used up for the whole repayment plan.

No Credit Cards – A Chapter 13 attorney will tell you that you’ll lose all your credit cards.

A Long Road – A Chapter 13 bankruptcy can remain on your credit report for up to 10 years.

Student Loans Don’t Count – Bankruptcy won’t address your student loan debt.

Advantages of Chapter 13

Flexibility – Chapter 13 trustees, can be flexible on the terms of your payments. You may be able to stretch out your debt payments, reduce the amounts, or give up an item you are making payments on.

Keep Your Things – A Chapter 13 attorney will also tell you that while you’re making payments under a Chapter 13 plan, you get to keep the property on which you’re making payments.

Done Means Done – Once you fully complete a bankruptcy repayment plan under Chapter 13, individual creditors cannot obligate you to pay them in full.

Bankruptcy can negatively affect your future credit, your reputation, and your self-image. However, it is true that it can also considerably improve your life’s short-term quality if you find yourself financially in over your head.

man looking at bills in distress

Signs You Should Call a Bankruptcy Attorney

Sometimes, life events or the pressures of financial hardship may lead a person to have to declare bankruptcy. The process is complex and in order to make sure you are filing for the right category of bankruptcy, it may be best to retain a bankruptcy attorney to help guide you through the steps. Some signs that you may need to consult with a bankruptcy attorney in West Palm Beach, FL may include:

  • Being Unable to Pay Your Monthly Bills
  • Relentless Calls From Creditors and Debt Collectors
  • If You Are Unsure of How to Address Accumulating Debt
  • Bounced Checks
  • No Cash Flow
  • If You Need Representation in Court

Filing Personal Bankruptcy

If you are filing personal bankruptcy, you may wish to obtain a Chapter 7 bankruptcy attorney if you cannot repay your debt over time. Often, a fresh financial start is given in return for some of your personal assets. If you are trying to repay your debt, but you just need more time, a Chapter 13 bankruptcy attorney can help restructure your debts and possibly negotiate a payment plan with your creditors.

Commercial Bankruptcy

If your business is struggling financially, you may wish to hire a Chapter 11 bankruptcy attorney. Your lawyer can help secure the time you need to reorganize your business and your debts to be paid later. But, if you feel that you will have to close your business, you may need a Chapter 7 bankruptcy attorney, who will help you hand over your business to the creditor in return for cleared debt.

Michael A. Kaufman, P.A., wordpress login

Welcome to Our Blog

Welcome to the blog of Kaufman Bankruptcy Law. If you’re searching for a bankruptcy attorney in West Palm Beach, FL, look no further. Our goal is to keep our clients informed by providing a resource where they can find advice before consulting a lawyer. We specialize in bankruptcy law, so if you’re currently undergoing financial troubles, please read on to find out how our firm can help you climb out of this seemingly endless pit.

Handling All Things Bankruptcy

At our law firm, we are licensed and experienced in the field of bankruptcy. Our attorney has handled both personal and corporate cases, from Chapter 7 to the consolidation of debts. We understand the difficulty of filing for bankruptcy, which is why we work closely with you throughout every step of the process. You can count on us for informative and compassionate counsel.

When you need advice from a bankruptcy attorney, our firm is here to help. We are dedicated to every client’s success, so you can expect us to go above and beyond to help you achieve your goals. Please continue following our blog for updates on Kaufman Bankruptcy Law, as well as informative advice from knowledgeable professionals.