Life keeps happening. It doesn’t matter if it’s a fire or a flood, nothing ever stops. With so many companies waiting for their small business loans to come through, there is a time and a place for bankruptcy.

How the Courts are Operating

The Florida Southern District Bankruptcy Courts have been closed to the public since March 30th. Filing bankruptcy in Florida has had to change to meet the requirements for social distancing and safety for all parties. Just as we are conducting consultations with clients via video and telephone, the courts are holding virtual hearings. Listed below are A few key points:

• When the stimulus check arrives, is not considered part of your income but IS regarded as an asset when you file for bankruptcy. Your creditors may have a claim on it, and it may need to be turned over to the trustee.
• If you are involved in Chapter 11 for your business or a Chapter 13, you may be able to change your payments depending on the economic impact of the pandemic on your finances.
• Make payments while waiting to petition for a modification of reorganization terms. If you are going through considerable hardship, you may be able to modify it to a Chapter 7.
• If you have not yet had a 341 meeting, your discharge could be delayed until a virtual meeting can be scheduled. Virtual meetings and hearings are being held for most matters via services like Zoom.
• If you are considering filing for bankruptcy, the courts are open, though you may need to sign some documents in person. New filings are moving along, just at a slower rate as the courts adjust to the new normal.

Should You File Now or Later?

It does not matter actually. The automatic stay goes into effect, and you can have immediate relief from your debts, such as credit card payments and even rent. You might end up getting some relief from the Paycheck Protection Act, or receive unemployment, a tax refund, or a stimulus check – it might even be enough to get you through and keep up with rent, bills, and other expenses. But what happens when that money runs out? Then what?

Bankruptcy is often seen negative, but it is a right that has been guaranteed to individuals for over 100 years. Filing for bankruptcy can give you relief from your debts, free up some income to keep you afloat and let you catch your breath. Yes, your credit rating will take a hit, but it will not be the slow dribble of trying to make minimum payments month after month. Whether you choose a Chapter 7 or 11 for your business or a Chapter 7 or 13 for yourself, you want someone with the experience you need to help you along your way.

The Help You Need

Filing for bankruptcy in Florida, whether it is personal or business, can be complicated. Only a licensed attorney is allowed to give you legal advice. Doing it yourself or using a bankruptcy preparer may not get you the result you need and could hurt you even more. When you are filing for bankruptcy in Florida, use DeCailly Law Group, PA to help you down your path.