Major life events can significantly reduce your income or sideline you from paying bills and debts. However, depending on your income, expenses, assets, and the type of debt you owe, filing for bankruptcy may be a viable option to help you achieve debt relief when going through significant financial distress. If you're thinking about filing for bankruptcy, consulting with an experienced Florida bankruptcy attorney is crucial for proper guidance.
The Law Offices of David K. Blazek, P.C. has the resources and experience to assist and guide clients through the complexities of bankruptcy. Bankruptcy attorney David Blazek is available to discuss your financial situation, help you understand all of your legal options, and provide the counsel you need when choosing which bankruptcy chapter is right for you. He will offer you the knowledgeable and comprehensive guidance you need to navigate every key decision along the way.
The Law Offices of David K. Blazek, P.C. is proud to serve clients in Tampa, Florida, and the surrounding communities of Miami, Jacksonville, and Orlando. The firm is also licensed to practice in the state of Georgia, serving clients in Atlanta, Macon, and Columbus, Georgia.
Going through financial adversity can be a difficult situation. Bankruptcy is a tool designed to help individuals and businesses who are struggling financially and overwhelmed with debt get immediate relief. In such difficult financial situations, filing for bankruptcy may be a viable solution that can remedy your financial woes and help you achieve the clean financial slate you deserve.
The most common bankruptcy chapters that are available for individuals and business owners in Florida include Chapter 7, Chapter 11, and Chapter 13 bankruptcy. Understanding the difference between each chapter is vital, as each option offers different advantages and may or may not be an option for you, depending on your unique financial circumstances.
Also known as liquidation bankruptcy, Chapter 7 bankruptcy helps consumers eliminate most of their general unsecured debt. When you file for Chapter 7, a trustee will be appointed by a Florida court to oversee the bankruptcy case. The trustee will collect and sell your non-exempt assets, which are any assets and property that are eligible to be sold in a Chapter 7 bankruptcy case.
Generally speaking, non-exempt assets include things such as second homes, vacation homes, bonds, stocks, second cars, bank accounts, cash, family heirlooms, and other investments. The proceeds from the sale of your non-exempt assets will be used to settle your debts and pay off your creditors.
Chapter 11 bankruptcy, commonly referred to as reorganization bankruptcy, provides business owners with an adequate amount of time to reorganize their business affairs, operations, assets, and gradually pay back the business's debts.
In a Chapter 11 case, the debtor (business owner) proposes a repayment plan to repay creditors while keeping the business running. The Florida bankruptcy court and the creditor must approve the proposed repayment plan before it is confirmed. Unfortunately, filing for Chapter 11 can oftentimes be an expensive and lengthy process.
Chapter 13 bankruptcy, also known as wage earner's bankruptcy, is available to individuals with a regular source of income. This bankruptcy option allows you to pay back your debts through a structured payment plan over a three to five-year period. Chapter 13 bankruptcy allows you to repay part or all of your debt using your future earnings. This way, you can hold on to your assets, including your cars, home, and other items.
If you're contemplating filing for bankruptcy here in Florida, it is important that you understand which option is right for your unique situation. If you are trying to make that decision, here are some important questions that you may want to consider:
Filing for Chapter 7 requires passing the bankruptcy means test. Meanwhile, chapter 13 is available for individuals with a regular source of income, and chapter 11 is available to businesses that need time to reorganize their affairs.
Chapter 7 will eliminate most of your general unsecured debt, while Chapter 13 still requires you to repay part or all of your debts. Chapter 11 is a reorganization plan for businesses that will help them eliminate debt through a repayment plan.
Filing for chapter 7 bankruptcy will allow you to keep certain exempt assets while your non-exempt ones are sold. In contrast, none of your assets will be sold under Chapter 11 or Chapter 13 bankruptcy, as both involve using a structured repayment plan to pay any outstanding debts.
The court will appoint an independent contractor (the trustee) to oversee the process for both Chapter 7 and Chapter 13 bankruptcy cases. In contrast, having an appointed trustee is optional for all Chapter 11 bankruptcy cases.
Chapter 13 and Chapter 11bankruptcy both require proposing a repayment plan to pay back your creditors. Conversely, no repayment plan is required for Chapter 7 bankruptcy cases, as the profits from the sale of your non-exempt assets will be used to repay your creditors.
Filing for any bankruptcy chapter will likely lower your credit score. However, if you maintain good financial habits, you can regain financial stability and improve your credit score gradually. At the end of the day, each bankruptcy case is unique. That’s why it’s important to work with a knowledgeable bankruptcy attorney who can review and evaluate the specific details of your case and your financial situation.
Filing for bankruptcy isn't the end of the world, and it’s never something to feel shame over. According to the Bankruptcy Filing Trends, a report put together by The American Bankruptcy Institute, there were over 46,000 business and non‐business bankruptcy filings in the state of Florida in 2019 alone. Despite what you may think, filing for bankruptcy is much more common than most people are aware of, as it can be an extremely helpful tool to help people struggling with debt.
Determining the bankruptcy option that suits your unique situation requires detailed guidance. If you're thinking about filing for bankruptcy, it is important that you speak with an experienced bankruptcy attorney to review your financial circumstances and help guide you toward the best course of action.
Bankruptcy attorney David Blazek has devoted his entire career to guiding and assisting clients on a variety of different bankruptcy-related matters. As your legal counsel, David can evaluate your financial situation, help you understand all of your bankruptcy options, and work with you to plot a course that can help you move forward. David and his legal staff will work diligently in an effort to craft a solution that can protect your assets, help you make informed financial decisions, and ultimately build a stronger financial future for yourself.
So if you’re considering bankruptcy, don’t wait. Contact The Law Offices of David K. Blazek, P.C. today. David and his staff can guide you through every phase of your bankruptcy proceedings and answer all of your questions along the way.
If you're facing financial hardship and considering filing for bankruptcy, contact The Law Offices of David K. Blazek, P.C. today to schedule a free case assessment. Attorney David Blazek can offer you the comprehensive legal counsel, support, and advocacy you need as you navigate the bankruptcy process. David is proud to serve clients in Tampa, Florida, and the surrounding communities of Miami, Jacksonville, and Orlando. The firm is also licensed to practice in the state of Georgia, serving clients in Atlanta, Macon, and Columbus, Georgia.