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Orlando Bankruptcy And Estate Planning Blog

Chapter 11 bankruptcy can help your business stay open

Bankruptcy isn't easy to go through no matter what situation you're in, but it can be made easier if you're prepared to take the steps you need to take before you file. Doing your best to try to renegotiate contracts and free up capital could help you avoid bankruptcy with your business, but if you can't, then your attorney may suggest a type of bankruptcy to help you.

There are several kinds of bankruptcy for different situations, but one of the most commonly used for businesses is Chapter 11. Chapter 11 bankruptcy is also known as restructuring bankruptcy. It allows your business to remain open while you negotiate new contracts and create a plan to help your business move forward in the green.

The consequences of missing credit card payments

Paying bills is usually not a pleasant experience. They always seem to be higher than you thought they would be and each time you make a payment your bank account balance goes down. Though paying bills is a necessary evil that many people dread, the feeling after missing a payment can be much worse.

Missing a credit card payment is not always due to the fear of reducing your bank account or seeing the new balance. Sometimes you may have just forgot the due date or simply do not have enough money in the bank to make the minimum payment. Credit card companies can even get sneaky about payment dates, requiring you to make payments online up to seven days before the due date for what they call “processing.”

Eliminate debt and get back on firm financial footing

Bankruptcy is an option that you have when you have so many debts that you cannot pay them back on time or with any certainty. Some people opt for bankruptcy to get a fresh start, while others turn to it with no other options.

The good thing about bankruptcy is that there are different types. Chapter 7 bankruptcy, known as liquidation bankruptcy, helps you by liquidating assets. Some people believe that they'll lose everything through this kind of bankruptcy, but exemptions make it possible to maintain many of the things you already own.

How does a living will differ from a health care surrogate?

Are you prepared in case something unexpected happens, causing your to be seriously injured and unable to make decisions for yourself? The future is uncertain, so regardless of your age, it may be beneficial to have both a living will and a health care surrogate to ensure you are as prepared as you can be.

Because both documents address the care you want to receive when you are unable to advocate for yourself, people are sometimes confused about what each document does and why they should have both. If you, like many people, are uncertain about the differences, it may be helpful to learn a little more about what a living will and a health care surrogate can offer.

Chapter 7 bankruptcy is an option for struggling businesses

Bankruptcy isn't always the first thing you want to try if you're falling behind on bills, but it is an option when you can't see a way to get control of your debt. As a business owner, you want to see your business succeed, but there are outside influences that could hold you back.

If your small business ends up being in over its head in debt, you have three types of bankruptcy that you can choose from that could help. Keep in mind that you, personally, might be responsible for the debts of your business unless you structured it as a corporation or LLC.

Is debt consolidation an option before bankruptcy?

Declaring bankruptcy is scary. Are there alternatives to try before you take such a step? One option is to try debt consolidation.

Debt consolidation is a way for you to gather your debts and address them. You need to weight the benefit of avoiding bankruptcy against the discipline and additional costs necessary for you to try debt consolidation.

It's never too early to start your estate plans

It is never too early to begin planning for your future, and that includes your estate plan. Estate planning as early as in your 20s is a wise choice because there is never a guarantee on the length of a person's life.

As a 20-something-year-old, you might think it's too soon to plan for your future retirement or to set up a will, but it's not. You may not plan to die any time soon, but a good estate plan still protects you in the case of serious injury (if you can't take care of yourself). A health care advocate, your health care proxy, is designated through your estate plan. This person helps take care of your needs if you are unable to due to injury or illness.

Here are the top reasons to file for Chapter 7 bankruptcy

If you realize Chapter 7 bankruptcy is the best way to improve your finances, it won't be long before you're learning more about the process and focusing on the next steps.

Before you can make a final decision, it's a must to understand the benefits of Chapter 7 bankruptcy. Here are a few of the best:

  • A fresh start: Once your Chapter 7 bankruptcy is complete, a good portion of your debt is gone for good. This gives you a fresh start, thus allowing you to better plan your finances in the future.
  • No repayment plan: The biggest concern with Chapter 13 bankruptcy is the repayment plan that lasts three to five years. With Chapter 7 bankruptcy, you get to keep all the income you earn in the future.
  • No debt limit: It doesn't matter how much debt you have, you can file for Chapter 7 bankruptcy as long as you pass the means test.
  • It's fast: A Chapter 7 bankruptcy discharge typically occurs within two to three months of filing. With Chapter 13, the repayment plan means that you'll be dealing with this for a minimum of three years.

Why choose Chapter 13 bankruptcy?

Chapter 13 bankruptcy, unlike Chapter 7, is not a liquidation bankruptcy. With this form of bankruptcy, you repay what you owe over a three-to-five-year timeframe.

With Chapter 7 bankruptcies, your assets may be sold to pay down debts, but your remaining debts are discharged soon after. Your debts may also be discharged in Chapter 13 bankruptcy, but only after you complete the repayment plan.

Can trust assets be protected during a bankruptcy?

Are you considering filing for bankruptcy but are concerned about how your assets could be affected? If you have set up a trust as part of an estate plan, you may have worries of what may happen to that property due to your bankruptcy.

As an individual, when you file for bankruptcy, you will be assigned a trustee by the court. This trustee will oversee your assets and can take unprotected assets to sell off and pay your creditors. Assets that are not eligible to be used to pay off bankruptcy debts include your home, retirement savings accounts and any vehicles you own.

ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
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