How much does filing Bankruptcy cost?

Typically, filing Bankruptcy, either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, costs between $800 to $1500. We do have payment plans wherein you can begin any of our services for $100 to $200 and make payments over three to four months to pay the fees. Generally, when you begin the services for Chapter 7 Bankruptcy, you stop all credit card payments and when you begin the services for Chapter 13 Bankruptcy oftentimes you stop all credit card, house, and even automobile payments.

 

What debts are dischargeable in Chapter 7 Bankruptcy or Chapter 13 Bankruptcy?

Certain debts are dischargeable, meaning your Bankruptcy Attorney / Bankruptcy Lawyer can eliminate those debts in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. These debts usually include credit cards, medical bills, unsecured loans, and old phone bills. In some cases tax debts can be discharged in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Under some very limited circumstances, student loans can be discharged in a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Child support and alimony payments are almost never dischargeable.
 

Will filing Bankruptcy affect me getting or renting an apartment?

Clients ask this question very often. In my experience, having practiced Bankruptcy Law for 15 years, none of my clients were denied renting an apartment because they filed either a Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. CAVEAT: As of the writing of this answer, October 19, 2007, I have received more reports from clients telling me that Apartment lessors have become more stringent in their requirements. This is no doubt a repercussion of the current real estate crisis. Some landlords now request first and last months rent or additional security deposit in order to rent an apartment.
 

What is the difference between an Exempt Asset and Non-Exempt Asset in Bankruptcy?

An Exempt Asset is an asset that you can keep if you file Chapter 7 Bankruptcy. In a Chapter 13 Bankruptcy, an Exempt Asset will not affect your payment or make your payment increase. An Non-Exempt Asset is an asset that the Chapter 7 Bankruptcy Trustee can sell at a public auction. The Chapter 13 Bankruptcy Trustee cannot sell a Non-Exempt Asset but can seek a payment increase if a Debtor wishes to retain a Non-Exempt Asset. Examples of Exempt Assets in Florida are generally ones Homestead, equity in an automobile in the amount of $1000, personal property in the amount of $1000, and certain Retirement Plans. There are many types of Exempt and Non-Exempt Assets and restrictions, so it is best to confer with your Bankruptcy Attorney.
 

What is a Bankruptcy Trustee?

There are essentially two different kinds of Bankruptcy Trustees, a Chapter 7 Bankruptcy Trustee and a Chapter 13 Bankruptcy Trustee. A Chapter 7 Bankruptcy Trustee is assigned by the Bankruptcy Court to oversee the cases of persons who file Chapter 7 Bankruptcy. Bankruptcy Law is essentially a balancing of the interests of Debtors (those who owe money) and Creditors (those whom are owed money). In a Chapter 7 Bankruptcy, a Debtor seeks to Discharge or eliminate all or most of their debts without any payment to the Creditors. The Chapter 7 Bankruptcy Trustee function then is to attempt to secure some dividend or monies for the Creditors. Therefore, the Chapter 7 Bankruptcy Trustee seeks to take from the Debtor assets that are Non-Exempt Assets under Bankruptcy Law. The Chapter 7 Bankruptcy Trustee then will sell those assets at a public auction.

Your Bankruptcy Lawyer / Bankruptcy Attorneys function, among other things, is to prevent this from happening.

A Chapter 13 Bankruptcy Trustees function is different from a Chapter 7 Bankruptcy Trustee.. A Chapter 13 Bankruptcy involves a consolidation of a Debtors debts and a payment to ones Creditors. The Chapter 13 Bankruptcy Trustees main function then is decide what is a fair repayment of a Debtors debts based upon their income, assets and other considerations. Your Bankruptcy Lawyer / Bankruptcy Attorneys function is to try to make that payment as low as possible.
 

In order to avoid the Chapter 7 Bankruptcy Trustee from taking my asset, can I put that asset in someone else's name?

If you put an asset that would not be protected in Bankruptcy in someone else's name, then the Chapter 7 Bankruptcy Trustee can avoid or reverse that transaction automatically within two years of the the transfer if that individual is a family member. Even if you are past the two year mark, you can have some problems under the Fraudulent Conveyance Act if it is determined that you transferred that asset to a third party in order to avoid your Creditors.
Once that transaction is reversed, the Chapter 7 Bankruptcy Trustee can sell that asset at a public auction.

The Chapter 13 Bankruptcy Trustee cannot sell such asset but can seek to make a Debtors payment higher in a Chapter 13 Bankruptcy based upon such a transfer.