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frequently asked questions
The idea of filing for bankruptcy should not prevent you from doing so. Even though many still believe it is taboo, bankruptcy is a significant step in the right direction for individuals and businesses alike when there are no other options for financial recovery. When you have questions about bankruptcy, contact Brian K. McMahon, P.A., with your South Florida bankruptcy FAQs.
Who Can File For Chapter 7 Bankruptcy?
Individuals can file for Chapter 7 bankruptcy if they meet the following requirements:
- You have not filed for Chapter 7 in the last eight years or Chapter 13 in the last six years.
- If you filed for either of these two forms of bankruptcy and were denied, you are required to wait at least 181 days before filing again.
- You must complete a credit counseling course within 180 days before filing.
Who Can File For Chapter 13 Bankruptcy?
In order to qualify for Chapter 13 bankruptcy, you must meet the following requirements:
- Any unsecured debt (medical and credit card debt) must total less than $419,275
- Secured debt (loans) must total less than $1,257,850
- You must make enough money to be able to make monthly payments agreed upon in the bankruptcy repayment plan.
- You are required to wait at least 181 days if you filed for Chapter 7 or 13 bankruptcy, and you were denied.
- You must prove that you filed state and federal income tax returns in each of the last four years.
- You are required to complete a credit counseling course within a period of 180 days prior to filing for bankruptcy.
Who Can File For Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is the most expensive bankruptcy option, which is why you should closely evaluate whether it is right for you as an individual, as a married couple, or as a business. If you file for Chapter 11 as a business, it can remain in operation during the proceedings.
Whether you are an individual or a business, you have the first option to propose a reorganization plan. If the plan you come up with is fair and reasonable, the court will accept it. If not, the court will propose a plan that you will need to complete to reorganize the debt.
Do I Need a South Florida Bankruptcy Attorney?
It is not required to have a bankruptcy attorney work with you, but it can save you a lot of hassle. An attorney will ensure that all of the required documents are completed correctly and filed with the court by their respective deadlines. An attorney will also make sure that you have disclosed everything that must be disclosed and that you choose the right bankruptcy option for your situation.
Call a South Florida Bankruptcy Attorney Today
Do you have questions about which bankruptcy option is best for your situation? Are you ready to file for bankruptcy? If so, you should speak with a South Florida bankruptcy attorney as soon as possible. Brian K. McMahon, P.A., is compassionate and empathetic to your needs and the situation. Call the office today to schedule a consultation in West Palm Beach, Port St. Lucie, Boca Raton, and all South Florida.