What is Bankruptcy?
Bankruptcy is a federal court process to help people and businesses eliminate debts in some cases. In other cases, debts are
repaid in full or in part over time.
How Do I File Bankruptcy?
You must file a Petition asking for bankruptcy protection. You will also have to file detailed schedules of your assets, your debts and
your financial arrangements.
What is Chapter 7?
Chapter 7 cancels many debts, so that you have a fresh start. In Florida, you may be able to keep some property, which is called
“exempt property” that creditors cannot take from you. In some cases, you may be able to keep your car and home if your loans on
them are current and you keep paying your loans. A trustee is appointed to take over your property that is not protected from
creditors. Any property of value will be sold or turned into money to pay your creditors. There are income limits to qualify for a
Chapter 7. If you do not qualify, you will have to file a Chapter 13 case and prepay some or all of your debts over time.
What is Chapter 13?
Chapter 13 allows you to pay part or all of your debts over time. You can usually keep your property, but you must agree to pay part
of your income to your creditors. If a mortgage is behind or in foreclosure, you may be able to pay back the past due amount over
time. You will make a written plan to repay your debts and past due amounts. The trustee will collect the payments from you, pay
your creditors and make sure you comply with your repayment plan. The Court must approve your repayment plan and your
budget.
What is Chapter 12?
Chapter 12 allows family farmers to repay debts over time.
What is Chapter 11?
This is used mostly by businesses to reorganize debts and finances so that the business may continue to operate. In Chapter 11,
you may continue to operate your business, but your creditors and the Court must approve your written plan to repay your debts.
There is no trustee unless the judge decides that one is necessary. If a trustee is appointed, the trustee takes control of your
business and property.
My Mortgage Is Behind. Can I Keep My House?
If mortgage is behind or in foreclosure, you may be able to pay back the past due amount over time. You must file a Chapter 13
case. You will make a written plan to repay your debts and past due amounts. If you make all your payments under the plan, your
mortgage will be current, and you may keep your house.
Do I Have To Go To Court?
You usually do not have to go to Court to see the Bankruptcy Judge. In all cases, you will have to attend a Creditors’ Meeting, but
that does not involve the Judge. In some case, special matters may arise in your case, and you will have to go to a Court hearing.
What is a “Creditor’s Meeting”?
About a month after you file your Petition, there will be a Creditors’ Meeting. The Trustee will review your schedules and ask any
questions about your case and your finances. Creditors sometimes ask questions, but often do not ask any questions. A
Creditors’ Meeting is usually routine and brief. If you hire this law firm, an attorney will be with you to handle any situation at the
Creditors’ meeting.
What Is A “Stay”?
As soon as you file your case, the bankruptcy court enters an order called a “stay”. This prevents all creditors from taking any
actions against you. Your creditors cannot contact you anymore. The stay order may delay a foreclosure or the repossession of
your automobile.
What Is A “Discharge”?
One of the reasons you may file bankruptcy is to have some debts cancelled. A discharge is the Court Order which states that you
do not have to pay some of your debts. However, some debts cannot be discharged. For example, you cannot discharge debts for
the following:
• Most taxes
• Child Support
• Alimony
• Most Student Loans
• Court Fines and Criminal Restitution
• Personal Injury caused by driving drunk or under the influence of drugs.
The discharge only cancels debts that happened before the date you filed for bankruptcy.
What Is A “Reaffirmation Agreement”?
Even if a debt can be discharged (cancelled), you may have special reasons why you want to promise to pay that debt. For example,
you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a Reaffirmation
Agreement with the Court. Reaffirmation Agreements are voluntary. You are NEVER required to make a Reaffirmation Agreement.
Reaffirmation Agreements must be in your best interest and must be affordable under your budget. Reaffirmation Agreements may
be canceled anytime before the Court issues your discharge or within 60 days after the agreement is filed with the Court, whichever
gives you the most time.
If you are an individual and you are represented by an attorney, your attorney must sign the Reaffirmation Agreement. Then the court
must hold a hearing to decide whether to approve the Reaffirmation Agreement. The agreement will not be legally binding until the
court approves it. If you reaffirm a debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The
debt will not be discharged and the creditor may take action to recover any property on which it has a lien or mortgage. The creditor
may also take legal action to recover a judgment against you. Think carefully before signing a Reaffirmation Agreement and make
sure it is in your best interest.
When Is My Case Over?
A Chapter 7 case is over when the Court enters the Discharge Order. A Chapter 13 case is over when you have made all the
payments in your payment plan.
Can I Cancel Student Loans?
Usually not. Under very limited circumstances some student loans may be cancelled.
Can I Cancel Taxes?
Usually not. Under very limited circumstances some taxes may be cancelled.
Can I Cancel Child Support And Alimony?
No.
What Debts Can I Cancel?
In a Chapter 7 case, most unsecured debts, like credit cards and medical bills, will be cancelled. Car loans or mortgages will be
cancelled if you don’t keep the property. In Chapter 13 cases, only part of some debts will be cancelled. .
Back to Frequently Asked Questions
What Debts Can’t I Cancel?
• Most Taxes
• Child Support
• Alimony
• Most Student Loans
• Court Fines and Criminal Restitution
• Personal Injury caused by driving drunk or under the influence of drugs.
Back to Frequently Asked Questions
Bankruptcy is a federal court process to help people and businesses eliminate debts in some cases. In other cases, debts are
repaid in full or in part over time.
How Do I File Bankruptcy?
You must file a Petition asking for bankruptcy protection. You will also have to file detailed schedules of your assets, your debts and
your financial arrangements.
What is Chapter 7?
Chapter 7 cancels many debts, so that you have a fresh start. In Florida, you may be able to keep some property, which is called
“exempt property” that creditors cannot take from you. In some cases, you may be able to keep your car and home if your loans on
them are current and you keep paying your loans. A trustee is appointed to take over your property that is not protected from
creditors. Any property of value will be sold or turned into money to pay your creditors. There are income limits to qualify for a
Chapter 7. If you do not qualify, you will have to file a Chapter 13 case and prepay some or all of your debts over time.
What is Chapter 13?
Chapter 13 allows you to pay part or all of your debts over time. You can usually keep your property, but you must agree to pay part
of your income to your creditors. If a mortgage is behind or in foreclosure, you may be able to pay back the past due amount over
time. You will make a written plan to repay your debts and past due amounts. The trustee will collect the payments from you, pay
your creditors and make sure you comply with your repayment plan. The Court must approve your repayment plan and your
budget.
What is Chapter 12?
Chapter 12 allows family farmers to repay debts over time.
What is Chapter 11?
This is used mostly by businesses to reorganize debts and finances so that the business may continue to operate. In Chapter 11,
you may continue to operate your business, but your creditors and the Court must approve your written plan to repay your debts.
There is no trustee unless the judge decides that one is necessary. If a trustee is appointed, the trustee takes control of your
business and property.
My Mortgage Is Behind. Can I Keep My House?
If mortgage is behind or in foreclosure, you may be able to pay back the past due amount over time. You must file a Chapter 13
case. You will make a written plan to repay your debts and past due amounts. If you make all your payments under the plan, your
mortgage will be current, and you may keep your house.
Do I Have To Go To Court?
You usually do not have to go to Court to see the Bankruptcy Judge. In all cases, you will have to attend a Creditors’ Meeting, but
that does not involve the Judge. In some case, special matters may arise in your case, and you will have to go to a Court hearing.
What is a “Creditor’s Meeting”?
About a month after you file your Petition, there will be a Creditors’ Meeting. The Trustee will review your schedules and ask any
questions about your case and your finances. Creditors sometimes ask questions, but often do not ask any questions. A
Creditors’ Meeting is usually routine and brief. If you hire this law firm, an attorney will be with you to handle any situation at the
Creditors’ meeting.
What Is A “Stay”?
As soon as you file your case, the bankruptcy court enters an order called a “stay”. This prevents all creditors from taking any
actions against you. Your creditors cannot contact you anymore. The stay order may delay a foreclosure or the repossession of
your automobile.
What Is A “Discharge”?
One of the reasons you may file bankruptcy is to have some debts cancelled. A discharge is the Court Order which states that you
do not have to pay some of your debts. However, some debts cannot be discharged. For example, you cannot discharge debts for
the following:
• Most taxes
• Child Support
• Alimony
• Most Student Loans
• Court Fines and Criminal Restitution
• Personal Injury caused by driving drunk or under the influence of drugs.
The discharge only cancels debts that happened before the date you filed for bankruptcy.
What Is A “Reaffirmation Agreement”?
Even if a debt can be discharged (cancelled), you may have special reasons why you want to promise to pay that debt. For example,
you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a Reaffirmation
Agreement with the Court. Reaffirmation Agreements are voluntary. You are NEVER required to make a Reaffirmation Agreement.
Reaffirmation Agreements must be in your best interest and must be affordable under your budget. Reaffirmation Agreements may
be canceled anytime before the Court issues your discharge or within 60 days after the agreement is filed with the Court, whichever
gives you the most time.
If you are an individual and you are represented by an attorney, your attorney must sign the Reaffirmation Agreement. Then the court
must hold a hearing to decide whether to approve the Reaffirmation Agreement. The agreement will not be legally binding until the
court approves it. If you reaffirm a debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The
debt will not be discharged and the creditor may take action to recover any property on which it has a lien or mortgage. The creditor
may also take legal action to recover a judgment against you. Think carefully before signing a Reaffirmation Agreement and make
sure it is in your best interest.
When Is My Case Over?
A Chapter 7 case is over when the Court enters the Discharge Order. A Chapter 13 case is over when you have made all the
payments in your payment plan.
Can I Cancel Student Loans?
Usually not. Under very limited circumstances some student loans may be cancelled.
Can I Cancel Taxes?
Usually not. Under very limited circumstances some taxes may be cancelled.
Can I Cancel Child Support And Alimony?
No.
What Debts Can I Cancel?
In a Chapter 7 case, most unsecured debts, like credit cards and medical bills, will be cancelled. Car loans or mortgages will be
cancelled if you don’t keep the property. In Chapter 13 cases, only part of some debts will be cancelled. .
Back to Frequently Asked Questions
What Debts Can’t I Cancel?
• Most Taxes
• Child Support
• Alimony
• Most Student Loans
• Court Fines and Criminal Restitution
• Personal Injury caused by driving drunk or under the influence of drugs.
Back to Frequently Asked Questions
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| Bankruptcy FAQ's |
| ROLAND H. ACOSTA & ASSOCIATES, P.A. 399 Carolina Avenue, Suite 210 Winter Park, FL 32789 Telephone: (407) 644-2531 Facsimile: (407) 628-9289 |
| Consult with an attorney for any legal concerns. ** © 2009 Roland H. Acosta & Associates, P.A. 399 Carolina Avenue, Suite 210 Winter Park, FL, 32789 Phone: 407-644-2531 Fax: 407-628-9289 Email Us |