Helping Clients Take Command of Their Financial Destiny
Venice is a relaxing town – so much so that it was voted among the 10 Happiest Seaside Towns by Coastal Living. However, Venice has more than just beaches to garner recommendations. The Shark's Tooth Festival, the Eagle Point Historic District, and the Venice Theater are other examples of its many entertainment and cultural offerings. Nevertheless, nobody can relax with bill collectors hounding them.
The universal human tendency towards procrastination can be devastating when it comes to debt problems. Interest accumulates, late fees pile up, creditors sue you and start seizing property – the nightmare only gets worse until you take decisive action. The two most popular ways of dealing with a debt problem are negotiating with your creditors and filing for bankruptcy.
Bankruptcy: Chapter 13 or Chapter 7?
Filing for Chapter 13 is a way of recruiting your lawyer, with oversight from the bankruptcy court, to help you negotiate with your creditors which is likely to get you a better deal than private negotiations. Under a successful Chapter 13 bankruptcy, you will receive favorable concessions from your creditors and you will get to keep your property. You will also be expected to pay your debts within three to five years.
Chapter 7 is the type of bankruptcy you file when you cannot pay your debts, even over time. Under Chapter 7, the bankruptcy trustee sells your property and uses the proceeds to pay your creditors. Any amount left unpaid is forgiven. Not all debts can be discharged under Chapter 7, and you can keep some of your property under Florida's bankruptcy exemptions.
Bankruptcy Law Is Complex and Arcane
The Federal Bankruptcy Code is one of the most complex bodies of law in existence. Add in Florida bankruptcy law, and what you end up with is a monstrosity (unless you have experience in working with it). Fortunately, that is where David Holland Law comes in. We have successfully assisted hundreds of clients in navigating their way through the bankruptcy maze.
“Very informative with my questions and concerns. Have used his services and would highly recommend him.” – Toni
Frequently Asked Questions (FAQs)
Under what circumstances is Chapter 7 bankruptcy a bad option?
You might not be allowed to maintain a Chapter 7 bankruptcy if the court decides you are able to pay your debts over time. In other cases, a Chapter 7 bankruptcy might not even wipe out most of your debts if your debts are mostly student loan or tax debts, for example. Ultimately this is a judgment call based on the totality of your financial situation.
Why does it matter who owns my debt?
It can make a difference who owns your debt. Because if someone bought your debt cheaply from your original creditor, they might be willing to settle for just a small percentage of the original debt. This could allow you to wipe out your debt for far less than you anticipated and keep you out of bankruptcy.
Is there such a thing as being too rich to qualify for a Chapter 7 bankruptcy?
Yes. To qualify:
- your income must be lower than the average income for the state of Florida, taking into account the number of people in your household; or
- you must pass the Chapter 7 means test.
It is a lot more difficult to qualify if your household is large (because the median income is higher), and you could still be ruled ineligible for other reasons.
What is the credit counseling requirement?
In most cases, you must complete credit counseling before you file for bankruptcy.
Credit counseling is offered by certain non-profit, state-approved agencies.
Your Financial Solution Needs to Be as Individual as You Are
No two clients are alike – they come with differing circumstances and disparate priorities. Because of this, no two debt solution plans are going to look exactly alike. In some cases, you may not even need bankruptcy as part of your debt solution; in others, bankruptcy may be essential.
If you are suffering from financial distress and wondering what to do next, contact David Holland Law. Call (941)-744-5450 or fill out our online case evaluation form to schedule a free consultation where we can answer your questions and evaluate your circumstances. We serve clients all over town, including Plantation, Venice Groves, Tarpon Center Drive and elsewhere.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.