• Chapter 7 Bankruptcy. This is the most basic form of bankruptcy that is available to individuals with low income or minimal disposable income. You may be eligible for Chapter 7 bankruptcy if you have little to no disposable income or make less than Florida’s average median income for your household size. In a Chapter 7 bankruptcy, your non-exempt assets will be liquidated to partially repay creditors. Fortunately, many of your assets can be exempted and protected. Many filers lose very little or nothing at all.
• Chapter 13 Bankruptcy. Chapter 13 is considered a “reorganizational” bankruptcy and is available to individuals who can afford to repay a portion of their debts. You will develop and propose a repayment plan that consolidates your debts into a single monthly payment, the amount of which will be determined by your current disposable income or the value of your non-exempt assets. You will need to make plan payments over a period of 3 to 5 years. Certain types of debts, including tax debt and missed child support payments, receive “priority” and must be addressed before unsecured debts.
• Foreclosure Avoidance. The bankruptcy’s automatic stay will normally used to halt a pending foreclosure so long as your case is filed before your home is sold. Though you cannot discharge missed mortgage payments without losing your home, you can repay off mortgage arrears, over the course of a Chapter 13 bankruptcy plan. Eliminating unsecured debts can also provide you with the additional financial resources you need to keep up with future mortgage payments.
• Avoiding and Stopping Wage Garnishments. Creditors can garnish a percentage of your wages once they obtain a money judgment. Some creditors, including the government and an ex-spouse with a child support order, do not necessarily need a money judgment before they can initiate a garnishment. Filing for bankruptcy will stop both pending and ongoing wage garnishments. The process also gives many filers the opportunity to reorganize their finances and address the underlying debt or debts.
• Avoiding Auto Repossessions. If you miss even a single car payment, your lender likely has the right to enter onto your property and repossess your vehicle. Once a vehicle has been repossessed, it is often difficult to impossible to recover. Proactively filing for bankruptcy when you know you will fall behind on automobile loan or lease payments can save your vehicle, as the automatic stay prohibits repossessions. Missed car payments are considered a secured debt and thus cannot be discharged without losing your vehicle. However, the missed payments can be paid off over time in a Chapter 13 payment plan.
• IRS Tax Resolution. Bankruptcy can potentially eliminate older income tax debt that meets certain requirements, but it cannot help you discharge newer unpaid income taxes. To avoid wage garnishments or even the seizure of your property, you will likely need to negotiate a settlement directly with the IRS. Depending on your circumstances, we may be able to help you secure a hardship extension, an installment agreement, an Offer in Compromise, or pay the amount due through a Chapter 13 Plan.

Learn more about our bankruptcy services in St. Petersburg by contacting us online or calling (727) 353-0054. We offer same-day appointments and are available to take calls 24/7.