Bankruptcy Lawyer

Under new rules passed by the Consumer Financial Protection Bureau (CFPB), debt collectors can start reaching out to struggling consumers via Facebook, Twitter, and other social media channels. Thankfully, they face some restrictions. For example, the messages must be private, meaning none of your social media friends or the public should be able to see it. In addition, you must be allowed to opt out of receiving the messages.

However, one caveat seems more like a burden on the consumer. Before collectors can report a defaulted debt to a credit agency, they must either speak to the borrower in person or by telephone, or wait 14 days after sending a letter or electronic communication. Unfortunately, social media is considered “electronic communication,” which keeps consumers on the hook for monitoring their social media for notices from debt collectors.

Chapter 7 bankruptcy is the most commonly filed type, and can benefit both individuals and businesses. In order to become eligible for Chapter 7, you must pass a "means test" establishing that you are not able to repay your debts to creditors. Those who file Chapter 7 bankruptcy are released from their personal liability for debts that qualify as dischargeable, such as credit card debt and medical bills. Debts that do not qualify include student loans, back child support, money owed due to having caused a personal injury, income taxes, and money owed for having broken the law (such as traffic tickets).

Under Chapter 7, certain property can be liquidated to repay creditors, while other exempt property cannot. In Florida, exemptions include up to $1,000 in personal property (such as furniture and home electronics), education savings, and tax refunds. You also get an exemption of $1,000 in car equity (or more if you are filing with your spouse), meaning your car probably won't be liquidated. For example, if your vehicle loan is worth $5,000 but the car has a value of $6,000 or less, it is exempt. If you have lived in Florida for 40 months or longer, all of your home equity is exempt as long as your property is no larger than a half-acre in a city or 160 acres elsewhere.

During a consultation at one of our conveniently located law offices in Bartow, St. Petersburg, and Lakeland, FL, bankruptcy attorney Matthew J. Kovschak can determine if Chapter 7 is right for you. 

With Chapter 7, there is hope for those facing insurmountable debt. Turn to Sutton Law when you need an attorney to help you file Chapter 7 bankruptcy. We have offices in Lakeland, St. Petersburg, and Bartow.

Chapter 11 and Chapter 13 involve making a court-approved repayment plan. Bankruptcy attorney Matthew J. Kovschak can help you through this process. We have three convenient offices in Lakeland, St. Petersburg, and Bartow.

Chapter 11 & Chapter 13 bankruptcy are known as "reorganization bankruptcy."

Chapter 13 is strictly for individuals with a stable income who are faced with creditors' demands for immediate repayment of loans because of overdue payments. With this option, home foreclosures, wage garnishments, and any lawsuits related to your debt will stop. Instead, you will enter into a court-approved repayment plan that consolidates all of your loan payments into single monthly installments made over a three- to five-year period. You don't have to liquidate any of your assets under Chapter 13. 

Chapter 13 requires having less than $394,725 in unsecured debts (such as credit card debt and medical bills) and less than $1,184,200 in secured debts (such as a mortgage). Under Chapter 13 bankruptcy, you will remain responsible for expenses such as student loans and child support.

Chapter 11 is for businesses or individuals, but is mostly used by businesses that are making money but cannot afford their loan payments. Unlike Chapter 13, this tool has no limits when it comes to the amount of debt carried, and it can require liquidation of certain assets in order to repay creditors. However, like Chapter 13, creditors can no longer take legal action or enforce garnishments against the debtor. The debtor will propose a repayment plan subject to the approval of the creditors and the courts. Upon approval, the business can continue to operate, usually after making changes to avoid becoming overwhelmed by debt in the future.