Debt Settlement Tampa Florida. Unforeseen happenings like job loss, death of only earning family member, wrong investment decisions and accidents can lead to debt accumulation in families while businesses may run up debts due to wrong business plans or risks. Government regulators have given individuals, families and businesses the option of three bankruptcy plans to plan their debt settlement and pay debts in a phased manner so creditors do not harass them and are assured that money will be paid.
Debt Settlement Techniques Available To Businesses in Tampa Florida
Chapter 7 Bankruptcy Filing – This system is used by small and large business entities which are closing operations and liquidating all available assets.
Chapter 11 Bankruptcy Filing – Companies keen on continuing business due to substantial goodwill among customers and expectation of good returns in future apply for Chapter 11 under which they can continue operations without a heavy debt burden.
Debt Settlement Techniques Available To Individuals and Families In Tampa Florida
Chapter 11 Bankruptcy – Individuals holding real estate mortgages loans which are higher then actual value of the property can take advantage of Chapter 11 to reduce mortgage principle to actual property value. This provision can also bring down interest rates and extend repayment terms so that property becomes profitable again as there is no debt on it. Sometimes divorced spouses file for bankruptcy under this to protect assets like vehicles, precious metals and investments that they may have bought together as a couple.
Chapter 7 bankruptcy – Also referred to as “consumer” bankruptcy this technique has many benefits for an individual with family responsibilities and debt burden. Here are a few critical benefits of this chapter namely:
- Protecting your home with defense of foreclosure
- Get automatic stay order to stop creditors from harassing you
- Opportunity to rebuild your credit rating with a clean slate
- Even joint debts owned by both partners can be written off
One flaw about Chapter 7 bankruptcy law which is a total liquidation of all debts and assets is that if during this period the person/s filing the case inherits a family property it is taken as an asset and is declared as a part of assets used to pay off debts.
Fate of Secured And Unsecured Family Property During Debt Settlement
If you are filing for bankruptcy by Chapter 7 then a trustee can take control of nonexempt property and sell it to settle debts of unsecured creditors. However exempted property like family residence, jointly owned vehicle by spouses, household goods, retirement annuities and insurance policies cannot be touched by creditors or bankruptcy trustees. The law states that families which own non exempt property cannot sell it 1215 days before filing for bankruptcy and use the money to increase value of exempted property as then court can reduce exemption value of exempted property. Debt settlement under bankruptcy filing should be done only under extreme conditions as it can lead to loss of several assets one would have worked hard to buy. It is more advisable to work out an agreeable credit settlement plan with creditors so they do not hanker after your money once your assure them of payments in near future.
If you have any questions about debt settlement Tampa Florida or would like to speak to us about your options, please contact us at (813) 518-7411. We represent clients during stressful and difficult times in their lives. We are empathetic, responsive, and push for a quick resolution. We look forward to helping you resolve your issue quickly, fairly, and in a way that will help you to return to the stable, predictable life that you deserve.