Types of Bankruptcy
Chapter 7, Chapter 13, and Chapter 11 bankruptcy in West Palm Beach
The Law Office of Gregg R. Wexler, P.A. assists clients who face insurmountable debt by advising them on the right type of bankruptcy.
West Palm Beach Chapter 7 bankruptcy
Chapter 7 bankruptcy, or liquidation bankruptcy is the most common bankruptcy filed. In 2010, the U.S. Courts reported 1,531,997 bankruptcy filings, and of those, 1,100, 032 were Chapter 7s.
To be eligible for Chapter 7, you must pass the means test, which compares your income with the median income in Florida. If your income is lower than the median income, you are eligible. If your income is higher than the median income, you must do further calculations to determine whether you have enough disposable income (income left after deducting expenses) to pay debts. Most people with low disposable income qualify for Chapter 7. However, debtors with high disposable income must file Chapter 13. No matter what your situation, it is essential to have a experienced West Palm Beach bankruptcy attorney on your side to help you through the process.
Chapter 7 appeals to people who have few assets and primarily unsecured debt, such as credit card debt, medical bills, personal loans, phone bills, utility bills, etc.
Unlike individuals, businesses do not have to submit to a means test. Generally, when a company files Chapter 7, it is liquidating assets and closing its doors for business.
West Palm Beach Chapter 13 bankruptcy
Chapter 13 bankruptcy is the second most common type of bankruptcy. Individuals with substantial equity often file Chapter 13 so they can preserve their assets. The debtor reorganizes debts into a three or five-year plan consisting of monthly consolidated payments, which the court must approve. The bankruptcy trustee handles debt repayment with secured debts taking priority, such as house and car payments. The trustee may reduce certain unsecured debts and may even eliminate some debts. Only individuals, sole proprietors, or individuals operating an unincorporated business are eligible for Chapter 13. As with Chapter 7, Chapter 13 bankruptcy requires the assistance of a knowledgeable West Palm Beach bankruptcy lawyer.
West Palm Beach Chapter 11 bankruptcy
Chapter 11 is mainly for businesses or small businesses, although wealthy individuals also file Chapter 11 because it has no debt limitation amounts (unlike Chapter 13). In Chapter 11, a business can reorganize debt while leaving the debtor still in possession of assets and able to operate the business. The debtor must obtain creditors’ votes of agreement on the restructuring plan.
If you believe you are eligible for any type of bankruptcy, you need a reliable law firm to guide you through the stressful process.
For Chapter 7, Chapter 13, and Chapter 11 bankruptcy help you can depend on
To discuss your legal needs and learn how our team can help you, contact Gregg Wexler online or call 561-629-1556 today to arrange your free consultation. Our staff speaks Spanish and Creole.
