FAQs Surrounding Bankruptcy in Fort Lauderdale

If you have made the decision to file for bankruptcy, your life is already filled with questions. You are likely concerned about your future, and you are most definitely worried about how you are going to pay for your daily expenses. While dealing with all of these concerns, you also probably have many questions about the actual process of filing for bankruptcy. Most people that file for bankruptcy have not done so before and so, they have no idea what to expect.

Before you actually file bankruptcy, you need the answers to your most pressing questions. It is for this reason our bankruptcy lawyer in Fort Lauderdale has compiled a list of the most frequently asked questions surrounding the process, and the answers to them.

How Long Does Bankruptcy Take in Fort Lauderdale?

It is natural to want the bankruptcy process to be over as soon as possible. After all, once your debt is discharged you can start off with a clean slate, and you probably want that to happen sooner rather than later.

The length of your bankruptcy case will largely depend on what type of bankruptcy you file. In a Chapter 7 bankruptcy, you can have most of your debt discharged, meaning you are no longer responsible for paying it. After filing Chapter 7, your debts will likely be discharged within three to five months. If you are filing a ‘no asset’ case, your case will close at around the same time your debt is discharged. If you are filing an asset case, your debts will still be discharged within three to five months, but your case may take up to one year to close.

If you are filing a Chapter 13 bankruptcy, your bankruptcy case will take a little longer. During a Chapter 13 bankruptcy, you may have some of your debts discharged, but the majority of them will be restructured. This means they will be organized into a payment plan, which you will have to three to five years to repay. Your bankruptcy case will not close until you have followed through with that repayment plan.

What is the Biggest Bankruptcy Myth?

There are many myths surrounding the bankruptcy process but of all of these, there are two that are by far the biggest. They both surround Chapter 7 bankruptcy.

One predominant myth about Chapter 7 bankruptcy is that when a borrower is successful with their case, their debt is discharged and they do not suffer any consequences, other than perhaps paying a small filing fee. Unfortunately, this is not the case. After filing Chapter 7 bankruptcy, the bankruptcy trustee will value your assets and some of them may be sold off. The proceeds from these sales will go towards repaying as much of your debt as possible. Although state and federal law do provide some exceptions to the assets that can be seized during the bankruptcy process, you will likely still lose some assets.

Another prevailing myth about Chapter 7 bankruptcy is that everyone is eligible. Again, this is not the case. To qualify for Chapter 7 bankruptcy, you must first pass a means test. This test will consider your income and your debt to determine if you have the means to repay the amount you borrowed.

If you do not pass the means test, it does not mean you cannot still file for bankruptcy. However, you will have to file for Chapter 13 instead, which will mean that you will have to repay a significant portion of the debt back. Additionally, Chapter 13 has debt limitations, which means that if you have too much debt, you may not be eligible to file Chapter 7 bankruptcy.

What are the Benefits of Filing for Bankruptcy?

Many people turn to bankruptcy as a last resort, and bankruptcy is not often spoken about positively. However, filing for bankruptcy has many benefits. A bankruptcy will immediately stop the issues you are facing from debt collectors, including wage garnishment, debt collection lawsuits, and even potential foreclosures. After these problems are dealt with, you will feel a great sense of relief and can start evaluating your options for addressing your debt.

The second benefit of filing for bankruptcy is actually resolving your debt. The way you resolve your debt will depend on the type of bankruptcy you file, and show the debts are dealt with during the bankruptcy process. No matter what type of bankruptcy you file though, or how long the process takes, you will reap the benefit of your debt being behind you and starting over with a clean slate.

Can Bankruptcy Eliminate All of My Debt?

Perhaps one of the main questions our bankruptcy lawyers in Fort Lauderdale are asked is whether bankruptcy will eliminate all of a person’s debt. Again, a Chapter 13 bankruptcy will not totally wipe out all of your debt, although you may still be able to discharge a portion of them.

However, regardless of the type of bankruptcy you file, there are some types of debts that are considered non-dischargeable. These debts include child support, debt related to taxes, alimony, student loans, and debt obtained through fraudulent or improper means. If you have these types of debt, you likely cannot discharge it during the bankruptcy process. Still, eliminating other types of debt may help you pay off the debt you cannot discharge through bankruptcy.

Call Our Bankruptcy Lawyers in Fort Lauderdale Today

When filing for bankruptcy, you have a lot of questions. At Loan Lawyers, our Fort Lauderdale bankruptcy lawyers can answer any question you have, tell you what to expect during the process, and give you the best chance of a successful outcome. We have helped hundreds of clients through the process, and we want to help you, too. Call us today at (954) 523-4357 or fill out our online form to schedule a free consultation with one of our experienced attorneys and to learn more about how we can help with your case.