Posts made in August 2020

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Who Qualifies for Chapter 7 Bankruptcy?

The qualifying conditions for Chapter 7 bankruptcy are not impossible to meet, but you must be able to show you are facing the financial hardships they cover before being granted this relief.

At The Law Office of Michael A. Kaufman, P.A., we have an experienced bankruptcy attorney in Loxahatchee, FL, who will provide here the information you need to see if you qualify for Chapter 7. This type of bankruptcy wipes out most unsecured debts and will give you a fresh start, but there are eligibility requirements that must be met.

When you’ve hired a bankruptcy attorney, the first thing he or she will likely address is previous bankruptcies. If you received a Chapter 7 discharge in the past, you must wait at least eight years from the earlier filing date before re-applying again. If you received a Chapter 13 discharge, you must wait six years. You must also complete a credit counseling course six months before you file for Chapter 7.

Also, anyone seeking the assistance of a bankruptcy attorney to file for Chapter 7 protection must pass a means test by showing that you have little or no disposable income. This test takes your average monthly income for the six months before your bankruptcy and compares it to the median income from a similar household in your state. If your income is below the median, you automatically qualify.

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Should You File Chapter 11 Bankruptcy? The Pros and Cons

Financial hardship is a reality of business life that hits some companies with a sledgehammer blow. It’s not anything to be ashamed of, and there’s no need to suffer needlessly under the crushing weight of insurmountable debt when there is a remedy available. The solution to getting your company’s finances back in order is available through Chapter 11 bankruptcy.

At The Law Office of Michael A. Kaufman, P.A., our bankruptcy attorney in West Palm Beach, FL, knows all about the qualification and filing process and is going to discuss the pros and cons here.

The pros are many, and foremost among them is that your business can still operate while paying its debts under a reorganization plan. Other positives include:

  • Creditors will stop pursuing your business.
  • You can renegotiate specific debts, such as leases.
  • Your business gets a chance at a fresh start.

Of course, with positives there are negatives too, and any bankruptcy attorney worth his or her salt will tell you this process can be lengthy and expensive. That is why small businesses sometimes opt for Chapter 7 or Chapter 13 filings instead. If you decide to file a Chapter 11 bankruptcy, keep in mind it allows your business to create a well-structured debt repayment plan.

Take the time to seek out a bankruptcy attorney who will find the best options for your company.