Chapter 7 Chapter 13 Bankruptcy Attorney Tampa Bay | Insolvency Lawyer Florida | Chapter 13 Filing St Petersburg |


► BANKRUPTCY	FORECLOSURES & COLLECTIONS	BUSINESS LITIGATION AND DISPUTES	BUSINESS FORMATIONS AND TRANSACTIONS	REAL ESTATE LITIGATION AND DISPUTES	REAL ESTATE TRANSACTIONS

		ARE YOU CONSIDERING BANKRUPTCY? ▪ LET'S FACE IT - BANKRUPTCY IS NOT A PLEASANT TOPIC. THE LAST THING YOU NEED IS DIFFICULTY FINDING A COMPETENT, EXPERIENCED, COMPASSIONATE AND AFFORDABLE LAWYER. YOUR SEARCH IS OVER! ▪ COMPETENCE/EXPERIENCE: With combined experience of more than 64 years representing both debtors and creditors, you will have the benefit of attorneys who understand both sides of the process. You will also have the benefit of attorneys who stay on top of the latest changes in the law. ▪ COMPASSION / UNDERSTANDING: We realize that this is a difficult time in your life. Financial hardship, if not dealt with effectively, can lead to other problems. You will have the benefit of lawyers who treat you and your case as unique. We are committed to earning your trust and resolving your situation favorably.
		▪ CONVENIENCE: For your convenience, our office is not in a 30 floor high-rise in the middle of downtown. You will have no trouble finding our office, and you will have the benefit of a ground floor entrance and free and abundant parking. To help fit your schedule, evening and weekend appointments are available. ▪ AFFORDABILITY: Our fees are reasonable and competitive. Just as importantly, however, is that there are no hidden costs. Before we file your case, you will know how much it will cost you. Finally, realizing your financial situation, we offer a variety of payment plans. ▪ FREE INITIAL CONSULTATION: We will (i) meet with you, (ii) review your situation, (iii) clearly advise you of your options and alternatives, and (iv) make a recommendation to you.
		► BANKRUPTCY Verona Law Group, P.A. provides full services to clients involved in consumer and commercial bankruptcy matters, including debtors, creditors, and others. Below is a detailed description of our representation of consumer and small business debtors. We also represent lenders and creditors in these matters, so we understand both sides of the problem. Contact Us: To discuss your needs in these areas, you can contact us at (727) 347-7000, or click link below to email us. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
		CONSUMER AND SMALL BUSINESS BANKRUPTCY IN A NUTSHELL I. INTRODUCTION There are generally two (2) types of bankruptcies available to individuals, including married couples, and small business owners. The most common type of bankruptcy used by individuals or married couples, as well as small business owners, is known as "Chapter 7 liquidation". The other type of bankruptcy commonly used by individuals, married couples and small business owners is known as a "Chapter 13 wage earner's plan". Regardless of which type of bankruptcy you choose, when you file your case, you are required to sign a document, under oath, affirming that you were aware of both types, and that you selected one over the other. We are required to sign the same document, affirming that we explained both types to you. This explanation takes place at our initial meeting. At our initial meeting with you, it is our goal to learn everything we need to learn in order to be able to effectively advise you of your choices and alternatives. We discuss the differences between each alternative, as well as the advantages and disadvantages of each alternative. We do this by listening to you, reviewing documents, and asking questions regarding your assets, debts, income and expenses. Finally, we make a recommendation as to which type of bankruptcy would be most appropriate for your circumstances. The decision as to how to proceed from there is yours. II. PREBANKRUPTCY PROCEDURES When you hire our office to represent you in a bankruptcy case, we give you a questionnaire to complete. The questionnaire covers some of the same information that we cover in the initial conference (assets, debts, income, and expenses), but in somewhat greater detail. If you want, the questionnaire can be completed on your computer and e-mailed back to us. If you need assistance in completing the questionnaire, we are there to help you. Once you complete the questionnaire and return it to us, we prepare a draft of the paperwork which the Bankruptcy Court requires, which includes schedules of assets, debts, income, and expenses. We usually mail or e-mail the draft to you, with instructions to review it carefully and to make any changes or adjustments which you believe may be appropriate. With the draft, we also include a list of questions and issues to be discussed or addressed. Once again, if you need assistance in finalizing the information, we are there to help you. Once the petition and schedules have been finalized, we schedule an appointment for you to come to our office to review and sign the final version. At this point, the case is ready for filing. III. EFFECT OF BANKRUPTCY FILING Once your case is filed, the Bankruptcy Court notifies each of your creditors of the filing. Each of the creditors is, at that point, legally prohibited from taking any actions which are intended to enforce payment of the debts. Therefore, the creditors are barred from telephoning or writing to you, and may not file or continue with lawsuits. This is referred to as the Automatic Stay. In the bankruptcy case, you are referred to as the "Debtor". What follows is a summary of the two (2) types of bankruptcies that are generally available to individuals and married couples, as well as to small business owners. IV. CHAPTER 7 LIQUIDATION As stated previously, Chapter 7 liquidation is the type of bankruptcy case most often utilized by individuals and married couples. There are two (2) primary components to a Chapter 7 case. *A. Discharge or Forgiveness of Debts* The first component to a Chapter 7 case is the discharge or forgiveness of debt. This is why individuals and married couples file Chapter 7 cases. In a Chapter 7 bankruptcy, an individual's legal obligation to pay most of his or her debts, including credit cards, medical bills and other "unsecured" debts, is discharged or forgiven. This is known as the Chapter 7 "discharge". In essence, the discharge constitutes a "Fresh Start". While the scope of the Chapter 7 discharge is broad, a few additional details are necessary. An "unsecured" debt or "claim", is a debt or claim for which there is no collateral securing repayment. Typical examples of unsecured claims include most credit cards and medical bills. A "secured" debt or claim, on the other hand, is one in which there is collateral securing repayment. Typical examples of secured claims are motor vehicle loans and real estate mortgages. How the Chapter 7 discharge affects the Debtor's obligation to pay may depend on whether the claim is secured or unsecured. In the case of an unsecured claim, with limited exceptions, the Debtor's legal obligation to pay is simply discharged or forgiven. The creditor may take no action which is intended to enforce payment of the debt. There are, however, certain limited types of unsecured debts that may not be discharged. These include: - Some taxes. - Debts that are not listed in the bankruptcy schedules. - Debts that are incurred through fraud. - Debts that are incurred in connection with a divorce, such as child support and alimony. - Most student loan obligations. Secured claims (motor vehicle loans, real estate mortgages) are treated differently. Technically, the debt is discharged, meaning that the Debtor no longer has a legal obligation to pay the debt. However, in a Chapter 7 case, if the Debtor wishes to retain the collateral (the house, the vehicle), the Debtor must generally pay the debt. Sometimes the creditor will agree to accept less than the full amount of the debt, paid over time. If, on the other hand, the Debtor does not desire to retain the collateral, the secured creditor may recover possession of the collateral, but the Debtor has no further obligations to pay. Therefore, in the case of a motor vehicle loan or real estate mortgage, if the Debtor desires to retain the vehicle or the home, regular payments must be made as required under the loan documents, or as otherwise agreed between the Debtor and the creditor. Failure to do so may result in loss of the asset through foreclosure or repossession. *B. Liquidation Of Assets (Occasionally)* The other primary component of a Chapter 7 liquidation is, on occasion, liquidation of assets. In a Chapter 7 liquidation, the Court appoints a person called a "Trustee". The Trustee is usually just another lawyer who works for the Court. The Trustee's job is to determine whether the Debtor owns any assets that the Trustee may lawfully sell. If so, the Trustee is required to sell those assets, convert them into money, and distribute the money to the creditors. Whatever the creditors receive from the Trustee is all they are entitled to since, as discussed above, the Debtor's legal obligations to the Trustee have been discharged. There are certain types of assets, known as "exempt assets", that the Trustee may not liquidate. In other words, exempt assets are those assets that the Debtor is entitled to keep. Exempt Assets: Under Florida and federal law, the primary types of exempt assets that apply to individuals or married couples filing a Chapter 7 bankruptcy in Florida are as follows: - Homestead: Your home, in many cases regardless of its value. In other words, the Debtor retains the home provided the mortgage and real estate taxes are paid. - Motor Vehicles: $1,000.00 of equity in a motor vehicle (or double that amount for a married couple). For example, a Debtor who owns a vehicle which has a value of $10,000.00, and on which $9,000.00 is owed, has equity in the vehicle of $1,000.00. - Personal Property: $1,000.00 - $5,000.00 of personal property (or double that amount for a married couple). This exemption is usually used to protect the Debtor's household goods, furnishings and furniture. - Retirement Plans: Most IRS qualified retirement plans, such as 401K plans, IRAs, Keoughs and SEPS. Applying these and other exemptions, most individual and married Chapter 7 debtors are able to retain most or all of their assets, while discharging their debts. If the value of your assets exceed the allowed exemptions, the Trustee will almost always, as an alternative to actually liquidating assets, give you the chance to buy back the excess equity over a 4-8 month period. If your case will likely involve a buyback, we will discuss the specifics in person. Approximately 30 days into the case, you are required to attend, with us, a "creditors' meeting". The term "creditors' meeting" can be misleading since in most cases, very few creditors actually attend the meeting. The creditors' meeting is not held in a courtroom, and there is no Judge present. At the Chapter 7 creditors' meeting, the Trustee spends approximately 5-10 minutes asking you questions about your assets, debts, income and expenses. At the creditors" meeting, the Trustee attempts to determine whether there are any assets that the trustee may lawfully sell for the benefit of creditors. In the vast majority of cases, all of the Debtor's assets are exempt, and there is no liquidation of assets for the benefit of creditors. The creditors' meeting usually marks the end of your active participation in the Chapter 7 case. Approximately 60 days after the creditors' meeting, or approximately 90 - 100 days after the case was filed, you will receive a written notice entitled "Discharge". This is the legal document that states that you have been discharged of your debts. The issuance of the discharge in most cases marks the formal end to a Chapter 7 case. V. CHAPTER 13 WAGE EARNER'S PLAN The alternative to a Chapter 7 liquidation is a Chapter 13 wage earner's plan. A Chapter 13 case is totally different than a Chapter 7 liquidation. In a Chapter 13 case, there is no issue regarding liquidation of assets. The Debtor retains all of his or her assets. The Debtor is, however, required to make a payment to the Court each month for a period usually ranging from 36 ' 60 months. The amount of the payment depends on a number of factors, including the Debtor's income, living expenses, amount of debt and value of assets. It is our job to take all of those factors into consideration in determining the amount the Debtor is required to pay in order to successfully complete a Chapter 13 case. Upon completion of the payments required under the Chapter 13 Plan, the Debtor is generally discharged of any amounts remaining unpaid. So, for example, if the Debtor pays 10% of the creditor claims, upon completion of the plan payments, the other 90% of the claims are discharged. Like Chapter 7, approximately 30 days into the case, you are required to attend, with us, a Chapter 13 "creditors meeting". The term "creditors' meeting" can be misleading since in most cases, very few creditors actually attend the meeting. The creditors' meeting is not held in a courtroom, and there is no Judge present. At the Chapter 13 creditors" meeting, the Trustee spends approximately 5-10 minutes asking you questions about your assets, debts, income and expenses. At the Chapter 13 creditors' meeting, the Trustee attempts to make sure that your Chapter 13 repayment plan complies with the requirements of the Bankruptcy laws. VI. CHAPTER 7 OR CHAPTER 13 How does one decide which type of bankruptcy is the most appropriate Chapter 13 is an excellent tool for clients who are faced with certain specific types of problems, including: (i) Home mortgage arrearages and foreclosures; (ii) Motor vehicle loans on which the amount owed is substantially higher than the value or the vehicle; (iii) IRS problems; (iv) The potential loss of important assets in a Chapter 7 liquidation. When our clients fall into one or more of these categories, we enthusiastically recommend Chapter 13. However, if our clients do not fall into one or more of these categories, we tend to recommend Chapter 7 as a better alternative. Chapter 7 is generally faster, more efficient, less expensive, and permits the Debtor to initiate credit recovery much more quickly.