What is Bankruptcy?
Bankruptcy is a legal option available to help individuals who have more debt than they can handle. The debt may be credit card, medical bills, IRS tax debt or any other monetary amount that someone says you owe. Through the bankruptcy code, Congress recognized that sometimes good people go through bad times and just need a fresh start. Bankruptcy provides that financial fresh start.

Bankruptcy is also widely used to stop wage garnishments, mortgage foreclosure, car repossession and to either eliminate IRS debt or pay IRS debt off without the continuing accumulation of penalties and interest.

The two chapters most commonly used in Ft. Lauderdale and Broward county bankruptcy is Chapter 7 and Chapter 13 bankruptcy. Both chapters will provide a fresh start but the choice on which chapter to use will depend on your individual circumstances.
Types of Bankruptcy

A fresh start through bankruptcy is available to individual consumers, farmers and businesses. There are several types of bankruptcy and most are referred to by the chapter of the bankruptcy code that they fall under. The most widely used chapters are:

1.   Chapter 7 for individuals and businesses
2.   Chapter 13 for income-earning individuals
3.   Chapter 12 for owners of family farms
4.   Chapter 11 is a reorganization plan for business
5.   Chapter 11 Sub-Chapter 5 is for small business owners

Which bankruptcy chapter best suits your unique situation is something that an experienced Fort Lauderdale or Broward bankruptcy attorney can help you decide. Everyone has heard of Chapter 7 bankruptcy and that in about 3 to 4 months, you can eliminate all of your debts without payments to a bankruptcy trustee or creditors. But, depending on your financial reality, you may not qualify for a Chapter 7 bankruptcy or it simply may not be your best option for a fresh start.  If you have IRS debt, a junior mortgage that is underwater or some other situation that survives a Chapter 7 bankruptcy – then Chapter 13 may be your best option.  A qualified Ft. Lauderdale lawyer can guide you on whether a Chapter 13 bankruptcy will address a financial situation that a Chapter 7 bankruptcy doesn’t.

Regardless of which bankruptcy chapter you decide to file under, the bankruptcy code is designed to give individuals and businesses a fresh start.  You will never know if you can take advantage of this opportunity until you find out the facts!  Call and make an appointment with an experienced bankruptcy lawyer today.  It will probably result in the first good night’s sleep you’ve had in a while!