Bankruptcy - FAQs
If you are dealing with financial complications, you may be feeling overwhelmed by your circumstances. It is important that you know who you can trust to provide you with the help your case requires.
At David Holland Law we know It is important that you have a thorough understanding of the issues you are facing. We have very briefly answered a few of the most common questions on this page, and gone into more detail in answering other common questions and issues in links to the right. As always please feel free to contact us for a free consultation to discuss any questions you may have about bankruptcy or debt defense.
What occurs when an individual has filed a bankruptcy petition?
Petitioning for bankruptcy causes the debtor's property to be considered together as one entity called an estate. Upon filing, the "automatic stay" immediately protects the debtor.
What is the automatic stay?
The automatic stay puts a stop on all collection efforts and most lawsuits. It can be extremely helpful in the event of a potential foreclosure or eviction. It is important to note, however, that the automatic stay cannot stop particular proceedings, such as tax, criminal, or support actions.
What kinds of debts can be discharged?
Most unsecured debts (credit card, medical, personal loans etc.) can be "discharged" meaning you will no longer have to pay them. Secured debts can be discharged as well if you surrender the property that secures the debt. In other words, If you don't want to keep a car or house you owe money on you can give it back and the debt will be forgiven. In a chapter 13 under certain circumstances a secured loan can be reduced to the value of the collateral. The remaining amount of the loan may be able to be discharged.
What is the difference between Chapter 7 and Chapter 13 bankruptcy?
There are many distinct differences between Chapter 7 and Chapter 13. Briefly, Chapter 7 involves the liquidation of all of a debtor's non-exempt assets to pay creditors. In Chapter 13, debt is reorganized so the individual can more easily make payments over three to five years.
We are here to help!
When you come to this firm, you can have confidence in the help and representation you will receive. Our team is committed to helping you work through this challenging time and assist you in pursuing the outcome you desire. We can conduct your free consultation over the phone, or we can meet in our main office in Bradenton, or by appointment in Port Charlotte or Sarasota. Contact us today!