Filing bankruptcy is an important decision that should not be taken lightly and should be used as a last resort to solve financial problems. The primary purposes of bankruptcy are to give honest debtors in financial trouble a fresh start and to repay creditors to the extent available for payment. Bankruptcies are filed in federal court, not local or state courts, and are serious undertakings that can alleviate an individual’s legal obligation to repay most debts. There are several types of bankruptcy that an individual can file.

If you are overwhelmed by debts and are mired down by late payment and over-the-limit fees, skyrocketing interest rates and payments, foreclosure and repossession, being endlessly harassed by creditors, and are unable to make ends meet and feel like you will never get out of debt, you may want to consider a free consultation with our law office. We routinely hear from clients and prospective clients of uncontrollable credit and medical debt, repossessions, and judgments, debts which are potentially dischargeable through Chapter 7 or Chapter 13 bankruptcies.

We understand the difficulties faced by working families who find themselves in a financial crisis, and we are here to help. Daniel L. Hightower, PA has offered bankruptcy assistance since 2005. The firm has successfully guided many clients through the process, made even more complicated by recent law changes. Our firm provides conscientious, competent, and diligent service and at all times will seek to achieve solutions which are just and reasonable for you with confidentiality, compassion, and quality customer service.

We put an emphasis on client contact in our practice of bankruptcy. If you call our office regarding a bankruptcy filing, you will speak to a live person, who will make an appointment to speak to an attorney if you meet the initial criteria to file either a Chapter 7 or Chapter 13 Bankruptcy. All initial consultations are personally conducted by Mr. Kenneth Hesser (an associate with Mr. Hightower since 2003), where he will meet with you and determine the best course of action to proceed, and quote you a competitive and reasonable fee if bankruptcy is the best option for you.

To find out more about your options and about getting a fresh start for your financial future, a free consultation with our bankruptcy attorney may be the best option. If filing bankruptcy is not your best option, we will tell you at the consultation and will assist you in finding the right plan for your needs.

CONTACT US

Frequently Asked Questions

Q: What chapters of bankruptcy are available to debtors?

A: There are usually two kinds of bankruptcies that can benefit debtors - Chapter 7 and Chapter 13, although Chapters 11 and 12 are also available.

Q: What is the difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy?

A: A Chapter 7 bankruptcy, sometimes called a “liquidation bankruptcy,” is designed to assist debtors in financial trouble who cannot repay their existing debts. The purpose a Chapter 7 bankruptcy is to alleviate the legal responsibility from debtors for repayment of your existing debts. This is called a “discharge.” Debtors with primarily consumer debts (meaning personal rather than business debts) must meet the requirements of the "means test" designed to determine whether or not they should be permitted to file Chapter 7 bankruptcy. If the overall household income is greater than the allowable average income for your state of residence and family size, your case may be dismissed, or you may be required to convert to a Chapter 13 repayment bankruptcy. Under Chapter 7 bankruptcy, a debtor may claim as “exempt” certain types under governing federal and state laws. The bankruptcy trustee, the attorney who administers the case for the court, has the right to take possession of and sell the non-exempt property. The proceeds of the sale of such property are used to repay your creditors a portion of what is owed to them. In certain cases, if you are found to have committed improper conduct, your discharge may be denied.

A Chapter 13 bankruptcy, sometimes called a “reorganization” or “debt consolidation” bankruptcy, is designed to assist debtors with regular income who want to pay all or part of their debts in installments over a period of time. If you are behind on your mortgage or other secured, installment payments, a Chapter 13 bankruptcy can stop a home being sold at a foreclosure or an automobile from being repossessed. This option is available even after a foreclosure suit has been filed. Eligibility for Chapter 13 bankruptcy requires disposable monthly income after living expenses are paid and debts which are within certain dollar amounts established by the Bankruptcy Code. Under a Chapter 13 bankruptcy, a debtor is required to file a “plan of reorganization” which details how you plan to repay your all or part of the debts you owe by using your future earnings over a period of three years or five years, depending upon your income and other factors as set by the court. Your plan must be approved by the court before it can take effect and you must live within a strict budget that is monitored closely by the bankruptcy trustee. If you are unable to make the required monthly payments, your Chapter 13 bankruptcy fails, and your debts will remain unless you are able to convert to a Chapter 7 bankruptcy. Upon successful completion of all of the payments under your plan, most of your remaining debts are generally discharged with some limited exception.

Q: What is the “means test”?

A: Under the new bankruptcy law, which went into effect in October of 2005, potential debtors are subjected to a mathematical formula called the "means test." This test establishes an initial determination of which kind of bankruptcy can be filed, either Chapter 7 or Chapter 13. This formula examines the debtor’s monthly income, amount and type of debts, and other aspects of the current financial situation. If your annual income is less than the Florida median income for your household size, then you are able to file a Chapter 7 or 13 bankruptcy. If your income is higher than the allowable state median, you are required to complete a long list of expense deductions to estimate how much “disposable income” you will generate over the next five years. The results of this extended calculation will determine if you can file for Chapter 7, or if Chapter 13 is your only option.

If you are wondering what the Florida median income for your household size is, click on this link: http://www.usdoj.gov/ust/eo/bapcpa/meanstesting.htm

Q: What is a bankruptcy trustee?

A: When a Chapter 7 or 13 petition is filed, the Office of the United States Trustee appoints an impartial attorney known as the bankruptcy trustee to administer the case and liquidate any non-exempt assets of the debtor. If all the assets are exempt or if they are subject to valid liens, the bankruptcy trustee files a report with the court indicating that there are "no assets" to liquidate, and unsecured creditors will receive no distribution. Most cases filed by individuals under Chapter 7 are no asset cases. If non-exempt assets are available for liquidation in a Chapter 7 bankruptcy, the trustee’s duty is to liquidate those non-exempt assets in a manner that gains maximum value for the unsecured creditors. This is accomplished through the sale of non-exempt property that is held free and clear of liens or if the property is worth more than any security interest or lien securing the property and any exemption that the debtor may have. The trustee also has the authority under the "avoiding powers" to recover money or property that was transferred or sold prior to the commencement of the case through preferential transfers to creditors in the 90 days prior to the case, to undo security interests and other transfers of property that were improperly perfected prior to the filing of the petition, and to pursue claims against the debtor for fraudulent transfers. In addition, the trustee presides over the §341 Meeting of Creditors, which every debtor is required to attend.

Q: What are the credit counseling requirements to file bankruptcy?

A: Unless an undue hardship can be proven, §109(h) of the Bankruptcy Code requires that all individual debtors filing for bankruptcy after October 17, 2005, take a credit counseling course which explains the available opportunities for credit counseling and provides assistance in determining a budget analysis. This course must be completed within 180 days prior to filing for bankruptcy. There are many options for taking this course. It can be given individually or by group, over the telephone, in person, by mail, or by Internet, and it must be given by an approved, nonprofit budget and credit counseling agency. The Office of the United States Trustee or bankruptcy administrator in each district approves each agency. In addition, after filing a bankruptcy case, debtors must complete a financial management instructional course within a specified time period before a discharge will be granted. If this course is not completed or if the court does not approve a waiver of completion, the case will be dismissed without discharge and the debtor is required to pay a reopening fee in order to ask the court’s permission to take the course late in order to get a discharge. For a list of approved agencies, click here: http://www.usdoj.gov/ust/eo/bapcpa/ccde/index.htm

Q: What debts are non-dischargeable in bankruptcy?

A: Generally, all debts listed in a bankruptcy petition are dischargeable. However, there are certain types of debts that are considered non-dischargeable pursuant to 11 U.S.C. §523 of the Bankruptcy Code. Some examples of these non-dischargeable debts are certain taxes and fines; debts that arise from fraudulent conduct; debts which you fail to list in your bankruptcy petition; alimony, child support, and certain other related debts arising out of a divorce decree; debts that caused by willful and malicious injury to another person; government-guaranteed student loans; and debts which are caused by a death or personal injury related to the operation of a vehicle while intoxicated. For a complete list of non-dischargeable debts, consult an attorney or review 11 U.S.C. §523 of the Bankruptcy Code.

Q: Do I need an attorney to help me file my bankruptcy case?

A: Each person who files an individual bankruptcy has a right to proceed without an attorney. This is called a Pro Se Debtor. A Pro Se Debtor is an individual who files a bankruptcy without the help of an attorney. A Pro Se Debtor assumes all responsibility for all of the proceedings in their case. If a Pro Se Debtor fails to comply with requirements of the Bankruptcy Code and Rules, with local procedural bankruptcy court rules, or with court orders, may cause the dismissal of their case without discharge. Because of this, the bankruptcy courts highly recommend the use of an attorney as ignorance of the complexities of bankruptcy law actually may cost an individual far more than initial attorney’s fees. Additionally, individuals who decide to represent themselves will not be able to get legal advice either from the court or from the trustee appointed to their case. By law, a corporation filing bankruptcy is required to be represented by an attorney.

For more information about the bankruptcy process, click on the link below to view a video prepared by the bankruptcy court or contact our office for a free consultation.

CONTACT US