What happens when you claim bankruptcy in Orlando?
What happens when you claim bankruptcy in Orlando largely depends on the type of bankruptcy that you file. The basic overview in Chapter 7 bankruptcy, is that the court will order a trustee to take control of your assets and sell them to pay off your creditors. In the basic overview of Chapter 13 bankruptcy, you will have to come up with a repayment plan that lasts for three to five years.
If you are considering filing for bankruptcy in Florida, it is important to speak with an experienced attorney who can advise you on the best course of action for your specific situation.
What Is The Job Of A Bankruptcy Trustee
The trustee’s job is to administer your estate and pay your creditors. Creditors are allowed to file claims against your estate, and the trustee will determine which claims are valid and should be paid. The trustee will also sell any non-exempt assets of your estate and use the proceeds to pay creditors. After your creditors have been paid, any remaining debt is discharged (canceled). Depending on the type of bankruptcy you file, you may then be free from your financial obligations.
There are two types of bankruptcy that individuals can file for in Orlando: Chapter 7 and Chapter 13.
In a Chapter 7 bankruptcy, also known as a “liquidation” bankruptcy, the trustee sells your non-exempt assets and uses the proceeds to pay your creditors. The remaining debt is discharged at the end of the bankruptcy. In a Chapter 13 bankruptcy, also known as a “repayment” bankruptcy, you must repay your debts over a period of three to five years. At the end of the repayment period, any remaining debt is discharged.
Are You Considering Filing Bankruptcy?
If you are considering filing for bankruptcy in Orlando, it is important to speak with an experienced attorney who can advise you on which type of bankruptcy is best for you. Caplan Bankruptcy can help you determine if bankruptcy is right for you and guide you through the process. Contact me today for a free consultation.