HELPING DEBTORS CHOOSE THE RIGHT BANKRUPTCY

Bankruptcy entails more than just listing your income, expenses, debts and assets. Under the law, the court, the trustee and your creditors have the right to question why and when you incurred the debt. They can also look back years to determine what assets you may have transferred and what debt you paid off.

The trustee and your creditors have the right to review tax returns, bank statements and any other documents which may be important to determine the specifics of your financial circumstances. They can also depose you and ask questions about your financial affairs. Failure to fully disclose income, expenses, debts and assets can lead to federal prosecution for bankruptcy fraud.

For these reasons filing for bankruptcy, and choosing the chapter under which to file for bankruptcy, should not be done without first consulting a qualified bankruptcy lawyer who can evaluate the consequences and risks of each choice after fully reviewing your financial circumstances.

CHAPTER 7 BANKRUPTCY

→ A debtor who is a consumer debtor must meet either the income test or the means test to be eligible to file Chapter 7 bankruptcy

→ Is a liquidation proceeding

→ Debtor keeps exempt property and turns over non-exempt property to the trustee

→ Creditors are paid only if there are proceeds to distribute after the sale of non-exempt property

→ Debtor receives a discharge of debt if no one objects to the entry of discharge

→ Certain debts cannot be discharged such as alimony, child support, student loans, taxes, and fraudulently incurred debt

→ Certain income taxes may be discharged.

CHAPTER 13 BANKRUPTCY

→ Available only to individual debtors with regular income.

→ In order to be eligible for filing Chapter 13, debts owed by the debtor are limited in amount

→ Is a payment plan lasting 3 to 5 years

→ Debtor retains possession of all property.

→ Creditors must receive payments totaling no less than the value of the debtor’s non-exempt property

→ Plan must be confirmed by the court

→ Debtor receives a discharge once all plan payments have been made unless debtor qualifies for hardship exception

→ Certain debts cannot be discharged, but discharge provisions are more generous than in Chapter 7 bankruptcy

→ Certain income taxes may be discharged.

*Notice under Florida Bar Rule 4-7.12(b): A debtor who contacts my office and chooses to file a Chapter 13 bankruptcy may be referred to another attorney for representation.

CHAPTER 11 BANKRUPTCY

→ Is a process for reorganization of the debtor

→ Is a very complex and expensive procedure

→ Debtor retains possession of all property

→ Payments to creditors are made in accordance with a plan of reorganization subject to approval by certain creditors and the court

→ Creditors must receive payments totaling no less than the value of the debtor’s non-exempt property

→ An individual debtor receives a discharge once all plan payments have been made

→ For individuals only debts which could have been discharged in a Chapter 7 bankruptcy are discharged. The discharge provisions are broader for corporations.

→ Certain income taxes may be discharged.

A SKILLED BANKRUPTCY LAWYER CAN DETERMINE IF BANKRUPTCY IS THE RIGHT OPTION FOR YOU

With over thirty years of experience representing debtors, attorney Magda Abdo-Gomez can evaluate your financial situation to determine whether bankruptcy is the best option for you.

As a former Special Assistant US Attorney who represented the IRS in bankruptcy, and as a law professor of bankruptcy for over twelve years, she understands the bankruptcy laws and how they can be used to provide you debt relief.

Call lawyer Magda Abdo-Gomez at 305-559-7478 or contact her online to see how she can help you resolve your debt problems.