Bankruptcy Attorney in Boca Raton, Florida

Bankruptcy is a legal proceeding that allows debtors to reorganize their finances and obtain a fresh start. Many individuals have exhausted their options in trying to deal with their creditors and could benefit by exploring the option of bankruptcy.

Sometimes filing for bankruptcy can bring the immediate relief that is needed. A bankruptcy filing results in an Automatic Stay, which acts as an injunction, which prohibits creditors from continuing to take collection activity.

This includes stopping things like collections lawsuits, foreclosure sales, wage garnishments, bank accounts garnishments, etc. To determine if bankruptcy is a good option, it is necessary to consult a bankruptcy attorney to establish the pros and cons of your case. Our office can still help even if bankruptcy is not recommended or the debtor does not wish to file for bankruptcy.

Bankruptcy Chapter 7

Bankruptcy Chapter 7 is referred to as “Liquidation” bankruptcy. This is because the debtor’s creditors are paid through the liquidation of the Debtors un-exempt (un-protected) assets.

The good news for Debtors is that in most bankruptcy chapter 7 cases, there are no assets to liquidate as most or all assets owned by the Debtor are protected under the law. When there are no assets to liquidate, the Debtor is able to discharge (eliminate) the debts without having to lose anything. This situation achieves the fresh start that is the spirit of the law. Debtors must qualify for Chapter 7 based on their level of income. 

Bankruptcy Chapter 13

Bankruptcy Chapter 13 is referred to as “Reorganization” bankruptcy. This is because the Debtor must propose a payment plan to repay his/her debts through a plan that has to be proposed, negotiated, and approved by the Chapter 13 Trustee and the Bankruptcy Judge.

The payment plan in most cases does not involve paying all creditors 100%. The goal is to achieve the lowest payment possible. Chapter 13 provides many benefits to Debtors such as stripping off certain liens on homestead property, allowing for various options to retain homestead property, allowing the potential modification of mortgages through the Mortgage Modification Mediation Program, bringing down the balance of certain car loans where the vehicle is “upside down”, etc. A Debtor that qualifies for a Chapter 7 may be able to benefit more from a Chapter 13 in some circumstances.

Arrange a Free Consultation With an Experienced Lawyer

If you would like to discuss your matter with an attorney, reach out to Zuniga Law, P.A. You can all our offices or arrange an appointment through our online form. We offer free initial consultations, allowing us to assess your case without obligating you to retain our services.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.