Puerto Rico Bankruptcy Lawyer
What is bankruptcy?
Do you have debt you that you feel like you can't repay? If so, bankruptcy could be a beneficial solution that enables you to take back control of your finances. Bankruptcy is the federal process that allows individuals or businesses to repay debts through the federal bankruptcy court. Depending on the specifics of your situation, you could achieve debt relief through filing for Chapter 7 or Chapter 13 bankruptcy. A skilled attorney from the Law Office of Sylvia C. Lugo-Sotomayor can help you decide if bankruptcy is your best option!
Chapter 7 Bankruptcy
Chapter 7 bankruptcy uses the liquidation of nonexempt assets to repay creditors, after which the debtor is discharged from the remaining balances of most of their unsecured debts. The whole Chapter 7 process typically takes only six months to one year, but you can only file if you qualify by passing the means test. If you qualify to file for Chapter 7, the court will appoint a bankruptcy trustee who will gather your nonexempt assets and liquidate them to repay your creditors as the trustee sees fit under the law. Once this process is complete, the balances of most of your remaining unsecured debts will be eliminated.
There are many potential benefits of pursuing debt relief through Chapter 7 bankruptcy: the process is much faster, you do not have to keep up with payments each month, your future wages and earnings will not be taken into account by the court, and most of your remaining unsecured debts will be discharged. It is important to understand however, that not all types of debt qualify to be discharged. For instance, debt due to educational loans, missed child support or alimony, and most unpaid taxes cannot be eliminated, so it's important to discuss your options with a knowledgeable bankruptcy attorney.
Chapter 13 Bankruptcy
Through Chapter 13 a filer can address their overwhelming debts and take back control of their finances through the reorganization of their debts. You do not have to pass a means test to file for this Chapter and you will not lose any of your property in the process. During Chapter 13, the court-appointed bankruptcy trustee will work with you and your lawyer to create a repayment plan that lasts between three to five years. During the repayment period you will make manageable monthly payments that help you repay the balances owed to your creditors. Once the repayment plan is complete, you will be discharged of most of your remaining unsecured debts, similar to Chapter 7 bankruptcy.
Chapter 13 bankruptcy could be very beneficial to your situation. Some of the advantages of pursuing debt relief through Chapter 13 include less impact upon your credit, your home is protected from foreclosure, you will not risk losing your property to liquidation, you have more time to repay your debts, including those that cannot be discharged, and you will only have to make one manageable payment each month. Our firm can help you determine whether Chapter 13 is the right solution for your financial situation.
Assistance in Puerto Rico and Tampa, Florida
You may have heard that filing bankruptcy is bad, but it is actually a great option for countless families and individuals who are struggling because of the downturn of the economy. With over 20 years of practice, our firm is prepared to help you organize your financial house. We pride ourselves on providing superior and personalized representation; our legal team puts clients first and assesses their personal situation before deciding if bankruptcy is the best option of for their unique situation.
Having also been admitted to the Florida bar, an attorney from the firm handles bankruptcy matters for residents of Tampa. To best serve their clients, the legal team provides representation to clients in both English and Spanish. To learn more about your bankruptcy options in Puerto Rico and Tampa, complete a free case evaluation from the firm today!