When You File Bankruptcy:

Chapter 7 and Chapter 13 cases are designed to give you a fresh start:

Chapter 7 - This option is for debtors whose incomes are substantially, if not totally, consumed by ordinary and necessary expenses to the point that they are unable to make regular monthly payments to their creditors. Under Chapter 7, a trustee is appointed to administer your estate. All property that is exempt from claims pursuant to Florida law remains in your possession and is excluded from the estate. As for the non-exempt assets, most debtors have the option of either surrendering these assets or retaining the property and paying its value to the trustee in twelve equal monthly payments.

Chapter 13 - is that part of the Federal Bankruptcy Code under which a debtor may repay all or a portion of his or her debts under the supervision of the Bankruptcy Court. The most important thing about debt consolidation is that it is designed to allow you to retain possession of your property -especially your home and car- which might otherwise be lost. In a debt consolidation case, the person who files must submit to the Court a plan for the repayment of all or a portion of his or her debts. With your assistance, this firm prepares your plan, and that plan must be approved by the Court to become effective. You must make regular payments to a person called the Chapter 13 Trustee, who collects the money paid by you and disburses it to your creditors as called for in the plan. Upon completion of the payments called for in the plan, you will be discharged from liability for the remainder of your debts.

You should consider filing a Chapter 13 plan if you:

You will need to have enough income in a debt consolidation plan to pay off your ordinary and necessary living expenses and keep up with the required payments to the Chapter 13 Trustee as they come due.

David E. Bailey, Jr
400 North Pace Blvd.
Pensacola, Fl. 32505
Phone 850-434-0253
Fax 850-434-0255
E-Mail DaveBai@aol.com

Contact Our Office Today!