Winter Garden-Clermont-Orlando Bankruptcy Law Center

 Cressman Law Firm, PA

 Central Florida Bankruptcy Law Center!

Focusing on Consumer Chapter 7 and Chapter 13 Bankruptcy

"Get Your Case Strated for As Little As $99.00"

The Cressman Law Firm is an Orlando area law firm which helps stop harassing calls from creditors and helps you get back on the road to financial freedom.

The Bankrupcty practice of the Cressman Law Firm is dedicated to exclusively helping families and individuals and small businesses manage their debt and seek releif with help from the Bankruptcy laws and Bankruptcy Courts.  Mr. Cressman also asissts Orlando area homeowners in need of help dealing with foreclosure issues and seeking modificaitons of their mortgages through Chapter 13 Bankruptcy options.

Consumer Bankruptcy - An Overview


Bankruptcy is a legal vehicle that provides relief to individuals and businesses in serious financial trouble and protects their creditors to the extent possible. Generally, the bankruptcy process assesses the debtor's assets and liabilities and provides a structure within which the debtor is allowed to keep some, and in most cases, all property and ordered to satisfy as many eligible debts as possible, according to an order of priority established by law. Remaining debts are discharged, except those of certain types, like domestic support orders, debt obtained by fraud and most tax debt.
 
The long time held view of the stigma of filing bankruptcy has long since faded away.  Bankruptcy is now viewed as a “fresh start” or “do over” or hitting the “reset button” on life after a time of unexpected trouble. Most bankruptcy debtors do not think of ways to go into to debt with the thought of filing bankruptcy.  Rather many have experienced an unexpected and extreme financial shock, such as loss of a job, business failure, death, divorce or serious illness which has left them being unable to meet their financial obligations.  Very few bankruptcy petitioners file bankruptcy to “abuse” the system as has been the cry from the financial, credit card and banking industries for years.
 
In such cases, filing bankruptcy may be the right answer. If you are facing serious financial challenges, it is very important to seek the counsel of an experienced bankruptcy attorney to help you to assess your legal options.
 
Bankruptcy law is primarily federal and administered by the federal courts. However, the various states' consumer and commercial laws do play important roles in certain bankruptcy issues and some circumstances.  That is why you should speak to an experienced bankruptcy lawyer about your options.  Contact our office today for your free initial evaluation.
 
Bankruptcy is an available option for individual consumers, businesses, farmers and municipalities. There are two major bankruptcy types: liquidation and reorganization. For practical purposes, many debtors have so-called no-asset cases where all of the debtors' property is exempt from the liquidation requirement and eligible debt is discharged without any property being sold

Chapter 7 - Liquidation Bankruptcy

Chapter 7 of the Bankruptcy Code governs liquidation bankruptcy, available to individuals and businesses. Upon the filing of a Chapter 7 bankruptcy petition, the bankruptcy court issues an "automatic stay" that stops most collection proceedings against the debtor. A bankruptcy trustee is responsible for gathering the debtor's nonexempt property, if any, liquidating it and distributing the proceeds to the creditors in order of legal preference. This process often leaves some creditors' debts unpaid when there are not enough assets to cover liabilities.

For an individual consumer debtor, these remaining debts are discharged and no longer the responsibility of the debtor; however, certain types of debt are non-dischargeable and survive the bankruptcy, such as alimony or child support. For a business debtor, the liquidated business does not survive the bankruptcy.

Chapter 13 - Reorganization Bankruptcy

A reorganization bankruptcy is more appropriate where there is ongoing income that can be used to pay creditors, at least in part. Chapter 13 covers individual consumer debtors with lower debts. Farmers and commercial fisherman can file for reorganization under Chapter 12.
 
Filing for reorganization also generates an automatic stay of most collection activity. The debtor then develops a repayment plan to pay debts over a three- to five-year period through a bankruptcy trustee. At the successful conclusion of the payment plan, if certain conditions are met, remaining dischargeable debt is cancelled. However, it is important to understand that if the debtor fails to make payments which are required under the plan or fails to make alimony, child support or certain tax payments, the court may either dismiss the case or convert the reorganization to liquidation.  In those situations where the court dismisses the case, the debtor may be obligated to pay the full amount of the debt owed, plus any interest which accrued during the stay of the bankruptcy case.  Therefore, if a debtor is considering Chapter 13, the debtor or consumer should be prepared to make payments under the plan for a period of 3 to 5 years.

Conclusion

Bankruptcy law can benefit debtors and creditors alike, depending on the circumstances. If you feel that a bankruptcy proceeding may benefit you, Contact our office today.  An experienced bankruptcy attorney can help their clients get out from under formidable debt and retain as many assets as possible.


DISCLAIMER: The information contained on the pages of this website is for informational purposes only.  Nothing contained herein should be considered legal advice and no attorney-client relationship will or can exist between you and the lawyers of this firm until such time as you have signed a Bankruptcy Attorney Retainer Agreement.  You should seek competent legal counsel for advice on any legal matter.

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