Bankruptcy Law: The Chapter 7 Means Test Requirement
In order to qualify for chapter 7 bankruptcy an applicant is required to pass the means test. The intent of the means test is to preserve chapter 7 bankruptcy protection to individuals who sincerely need it and cannot afford a chapter 13 bankruptcy. A chapter 13 bankruptcy forces debtors to make monthly payments to creditors under a bankruptcy court approved payment plan. The payments tendered under the payment plan allow creditors to receive at least partial payment for the balance outstanding. On the other hand, a chapter 7 bankruptcy does not necessitate any monthly payments under a payment plan. Instead, a chapter 7 bankruptcy will liquidate the applicant's assets and use the proceeds of the sale to reimburse creditors. Before applying for bankruptcy debtors should always consult a trained Tampa bankruptcy lawyer to decide which type of bankruptcy will be best for their situation.
In order to move onward with a chapter 7 bankruptcy the debtor must pass the means test. For most applicants the means test is a complex and time consuming procedure. The chapter 7 means test entails numerous steps and demands an understanding of chapter 7 bankruptcy law. The debtor will need to have a complete understanding of the laws regarding how income is treated under the means test and which debts are deemed as unsecured and non-priority. Nearly all applicants do not have the training required to understand all of the nuances of this bankruptcy law and will consult a Tampa bankruptcy attorney for help. A skilled Tampa bankruptcy lawyer can evaluate all of the applicant's financial statements and discover if the applicant satisfies the means test.
If you are thinking about filing for chapter 7 bankruptcy and have questions you should contact Florida Law Group for assistance. One of our experienced Tampa bankruptcy attorneys will answer all of your bankruptcy questions in a free and confidential consultation.
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Chapter 11 allows businesses the opportunity to restructure their debt without having to liquidate any of their assets. Furthermore, as soon as the Tampa bankruptcy lawyer files the petition for Chapter 11 protection the debtor will automatically become a "debtor in possession." When the petitioner is a debtor in possession a trustee is not appointed to oversee the business, rather the debtor keeps possession and control of the business's assets. Typically, a debtor will
Unlike a chapter 13 bankruptcy, a chapter 7 bankruptcy does not require the filing of a payment plan. Instead, the bankruptcy trustee collects and sells the debtor's assets and uses the income of such assets to pay the debtor's lenders. However, a few classifications of assets will be exempt from the bankruptcy and the trustee will not liquidate the exempt assets in order to pay the creditor's claims.
One of the benefits of seeking credit counseling instead of bankruptcy is that a bankruptcy filing will not show up on a debtor's credit report. In addition, there is usually no need to hire a Tampa bankruptcy attorney for credit counseling. However,
While individual debtors are permitted to file for Chapter 11 most often a Tampa bankruptcy attorney will advise individuals to file for either Chapter 7 or 13. The higher costs and fees demanded by Tampa bankruptcy lawyers typically make filing for Chapter 11 by individuals an illogical choice. A Chapter 13 or Chapter 7 petition will
A chapter 13 bankruptcy may give applicants various advantages which are not available under a chapter 7 bankruptcy. Most notably, chapter 13 bankruptcy offers applicants an opportunity to rescue their home from foreclosure. For instance, as soon as the bankruptcy application is put forward it will compel an automatic stay of any existing foreclosure litigation.
Judicious consideration must go into composing the payment plan to guarantee the debtor can adjust to the stern monthly payments. Typically, the payment plan will force the debtor to become adjusted to living on a fixed budget for a lengthy period of time. In addition, the borrower will not be allowed to incur any new debt without first getting the approval of the chapter 13 bankruptcy trustee.
Students from both private and public universities all over the country may also provide low cost or free advice. The sessions will only achieve directing clients to the right legal path in filing the right papers. Note that with the new bankruptcy laws taking into effect making the bankruptcy filing process more difficult than usual, an experienced bankruptcy attorney will be worth your money.
Many people who enter the bankruptcy process worry about the fate of their credit. This is actually unnecessary as the bulk of credit damage happens before the bankruptcy process is even initiated. While no one wants the added hassle of rebuilding their credit after resolving debt troubles, doing so can put you leaps ahead of others in the credit game.
Americans are now filing Chapter 7 or 13 Bankruptcy to get their debts under control. Bankruptcy in itself is designed for debt elimination. Chapter 7 bankruptcy functions to cancel out unsecured debt such as utility or medical bills, credit card, etc. Chapter 13 Bankruptcy on the other hand is designed to give individuals more time in repaying all their debts.
Filing for bankruptcy is good news whenever you are struggling with your credit card debt, mortgage or medical bills. Bankruptcy laws help families and individuals in their debt struggles. You have two options on how to deal with your debt problems, Chapter 7 (debt elimination) and Chapter 13 (reorganization). Always remember that you can regain credit again after successfully filing your bankruptcy.
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A Tampa bankruptcy lawyer will typically spend a substantial amount of time preparing his client for the 341 meeting. At the hearing, creditors will usually question the debtor about the financial information submitted on the bankruptcy petition and schedules. Often, the creditor's questions will be structured to help determine if the debtor honestly and correctly represented their assets, income, and debts on the bankruptcy petition. It is imperative that debtors
The prenuptial agreement may also control the distribution of assets in the event that one of the spouses predeceases the other. A Tampa divorce lawyer who is experienced in drafting prenuptial agreements should be able to advise clients on all the possible estate planning ramifications that can occur due to the prenuptial agreement.
There are many other possible advantages and disadvantages to filing for bankruptcy. To find out if bankruptcy can help you contact a Tampa bankruptcy lawyer in your area. A Tampa bankruptcy attorney can evaluate the circumstances of your case and provide you with valuable legal guidance.
Under Florida DUI law, it is illegal for a commercial driver to operate a commercial vehicle with a blood alcohol level of .04 or higher. If a commercial driver is found operating a commercial vehicle with a blood alcohol level above .04 his driver's license may be suspended for up to one year. However, a Tampa DUI lawyer may be able to show
A spouse may be listed on the deed of the property as an owner but not a promisor on the promissory note, and thus not liable to the mortgage lender for the home loan debt. If your spouse is not a promisor to the mortgage debt you should advise your Tampa divorce lawyer. A prudent Tampa divorce attorney should prepare the divorce settlement to account for this contingency. For instance,
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