Personal Bankruptcy | Debt Relief

Pilka & Associates, P.A., represents clients who need to file for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code that are initiated by either an insolvent individual, or business, or creditors seeking to have the debtor's remaining assets distributed among the creditors. We also represent creditors of bankrupt debtors. The bankruptcy process begins with the filing of a petition under the Bankruptcy Code which provides procedures for individuals, partnerships, and corporations to satisfy their creditors when they are insolvent. The law has three primary objectives:

1. To relieve debtors from pre-bankruptcy financial burdens (where there are insufficient assets to satisfy debts owed to creditors);
2. To rehabilitate debtors and to give them a "fresh start" by allowing them to retain assets necessary for subsistence which are exempt from creditors reach; and
3. To protect creditors by establishing an orderly and equitable system of satisfying their claims out of existing assets and/or future income and earnings.

Liquidation

This is liquidating bankruptcy, formerly called “straight bankruptcy, in which all of the debtor’s (individual, corporation, or partnership) non-exempt assets are liquidated (sold) by the trustee in order to pay creditors' claims or are abandoned. However, some assets, such as the debtor’s homestead, may be retained by the debtor. The petition may be voluntarily or involuntarily filed. Typically, the debtor has no hope of continuing business operations and/or paying debts.

Adjustment of Debts of an Individual with Regular Income

Only individuals, including self-employed individuals, with regular income may file for bankruptcy under this chapter. Chapter 13 is often used by individuals who want to catch up past due mortgage or car loan payments and keep their assets. The debtor must propose in good faith to pay all or part of the debts from future income over a period of time ranging from three to five years. The debtor makes regular payments to creditors through the trustee under a plan. If all payments to the trustee over the period of the plan are paid, many of the remaining debts are discharged. Chapter 13 petitions must be voluntary.

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Brandon, Florida (813) 653-3800
Lakeland, Florida (863) 687-0780