Medical bills and divorce expenses are two of the major reasons why Americans are forced into bankruptcy. Neither of these can be planned for or easily controlled. When people try to pay these kinds of bills, they often use their credit cards. Once they can’t meet their minimum monthly payments, they know that they are in trouble. They begin to worry about losing their home or car. As the debt collectors begin to call, they know it’s time to call a Bankruptcy Lawyer Fort Lauderdale legal practice for help.
Most people will either file for bankruptcy under Chapter 7 or Chapter 13. The first option is known as the Fresh Start bankruptcy. Recent changes in the law have made it more difficult to use this option. Only people who make less than the median income in their state are automatically allowed to use this option. Qualified debtors are required to sell off their assets to pay creditors. The creditors usually receive far less than they are owed. Attorney Scott B. Babbitt P.A. Fort Lauderdale understands the nuance of bankruptcy law. He can protect as many of the debtor’s assets as are allowed. That means that often a person can keep their home, car and equipment they need to make a living. The process usually takes between three to six months.
Debtors who make more than the median income are usually required to file for bankruptcy under Chapter 13. This is a reorganization plan. The court appoints a bankruptcy trustee who determines how much money the debtor needs to live a minimalist life. He then puts them on a strict budget. Every month, any money that the debtor makes above this amount is given to creditors to pay off their debts. As in the first case, the creditors usually get far less than the amount owed. This process can take up to five years. After the debtor completes the process, remaining debts are discharged.
A Bankruptcy Lawyer in Fort Lauderdale will ensure that the bankruptcy trustee allows the debtor sufficient funds to live reasonably well. This might mean ensuring that they have enough money to pay their mortgage and car payments. It also guarantees that the trustee treat the person with respect and does not harass them.