Bankruptcy in Royal Palm Beach affords consumers with two chapters to achieve debt-relief. Chapter 7 and 13 are these options. With Chapter 7, the consumer liquidates all profitable assets to generate funds for repayment. Chapter 13 is a structured repayment plan that reorganizes debts into one consolidated effort. Consumers who wish to settle debts through Bankruptcy require the assistance of a bankruptcy attorney.
Which Chapter is Right For You?
Chapter 7 is only beneficial to consumers with a considerable amount of assets. Professional appraisals for each asset provide potential buyers with a true market value. Buyers are more likely to purchase the available asset if it offers a higher return on their investment.
Bankruptcy attorneys arrive at an overall balance for the consumer’s debts. Next, he or she calculates the value of assets based on the appraised values. When the balance of debts is greater than the value of assets, Chapter 7 bankruptcy is not feasible.
Chapter 13 requires affordability of the structured repayment plan. The designated payment is determined through calculation of debt values. A comparison of the consumer’s income and the payment value determines affordability.
Common Misconceptions About Bankruptcy
Bankruptcy, while it provides a debt-relief option, is not a cure-all for improper management of finances. Consumers facing difficulties with managing their finances should acquire credit counseling. Some attorneys and lenders offer this service.
Bankruptcy in Royal Palm Beach is not free. To file a claim, the consumer pays a fee. The fees, typically, begin at around $1,500. This value does not include the attorney’s fees or costs.
It is not the only option for debt elimination. Consumers can speak to their creditors about probable settlement offers. Payment arrangements for this new value are possible. Consumer can request a removal of the debt from their credit history after the debt is paid in full.
Liquidation is not left up to the consumer to complete alone. A trustee manages all sales of assets and distributes funds once generated to creditors. He or she determines whether operation of the business is feasible during bankruptcy. Feasibility is established through an assessment to weigh required expenses over possible profits generated through operations.