Stephen G. Cobb - Florida Criminal Defense Lawyer

Pensacola Bankruptcy Lawyers

In Pensacola, bankruptcy attorneys provide expert legal counsel to clients who are on the brink of financial ruin.  Many consumers don’t have a true understanding of how bankruptcy actually works.  There is a ton of misinformation on the whole process out there, especially in the wake of the bankruptcy reforms that went into effect in 2005.  By consulting a reputable bankruptcy attorney, in Pensacola or the local area, you can learn everything you need to know to decide if bankruptcy is the right option for you.

Bankruptcy was created to assist consumers overwhelmed with financial burdens and unable to keep up with payments for all their debt and bills combined.  Typically, consumers consult with a Pensacola or other bankruptcy attorney and then file one of two common forms of bankruptcy:  Chapter 7, also called “liquidation” bankruptcy, or Chapter 13, also called “reorganization” bankruptcy.

Under Chapter 7 bankruptcy, debtors will have most or possibly all of their debts completely wiped out, which is referred to as the bankruptcy “discharge.”  This type of bankruptcy is often referred to as liquidation bankruptcy because the court-appointed trustee oversees the sale (liquidation) of all non-exempt assets and distributes the proceeds to creditors.  Items exempt from this liquidation typically include the family home, car, and personal belongings such as clothing and household items.  Experienced bankruptcy attorneys (in Pensacola or elsewhere) can help you figure out exactly what you’ll be able to keep should you file for Chapter 7.

Under Chapter 13 bankruptcy, however, the debtor must file a repayment plan with the court.  The debtor then makes regular monthly payments that will allow all creditors to be repaid within a three-to-five year period of time.  Those consumers who have too high of a monthly income to qualify for Chapter 7 bankruptcy will be required to file for Chapter 13 protection instead.  One benefit to filing for Chapter 13 bankruptcy is that debtors do not lose property since they’re reorganizing monthly payments to an amount they can afford, while continuing to pay down debt owed to creditors.  Additionally, you can roll in the fees you owe to your Pensacola bankruptcy attorney into the repayment plan, rather than having to pay the entire amount all at once.

Stephen G. Cobb, Esq.

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