These days, there are financial challenges all around us. There are millions of people in the United States alone who are working hard just to keep their financial heads above water. But there are also a lot of people who just want to give up and file for bankruptcy. In Puerto Rico, filing for bankruptcy is not as easy as the television commercials would have you believe. It is a complicated process, and you should hire a lawyer to help you take care of it. Please contact our Puerto Rican bankruptcy attorneys or visit @puertoricanlawyers to begin your free case exam. If you want to find a lawyer to hire and divorce your spouse, then that may also be a good time to look into a San Juan bankruptcy attorney as well. Divorce can leave you financially strapped, but good planning can prevent it from ruining you completely. When you hire a good attorney, your best interests will be represented from the beginning of the bankruptcy process to the end.
Filing for bankruptcy is much more difficult than filling out a few forms and then waiting. There is a long list of federal laws that you have to navigate if you want to have the process done right. The first thing you have to determine is what type of bankruptcy you want to file; chapter 7 or chapter 13. Right away, you can see the need for an experienced attorney. There are several significant differences between these two methods that you would need to consider before making your final decision. A Puerto Rico bankruptcy lawyer can help you see the differences and make the right choice.
In Puerto Rico, there are certain things that can be exempt from bankruptcy. Contrary to popular belief, a consumer does not lose everything when filing for Chapter 13 which is essentially financial restructuring or consolidation. Some of the items included as exemptions in Puerto Rico include:
- An individual can exempt up to $25,000 in personal assets while a married couple can exempt up to $50,000.
- In certain cases, your home can be exempt.
- If you are a partner in a business, then your personal bankruptcy will not affect your company.
- Personal property such as a Bible, a family burial plot, clothing, jewelry and the church pew your family sponsors at the local church are exempt.
- Unemployment compensation and worker’s compensation payments are exempt from bankruptcy under Puerto Rico law.
One of the most popular misconceptions about bankruptcy in the state of Delaware is that it is free to file. Nothing could be further from the truth. One of the mandatory steps of filing for bankruptcy is to go through a credit counseling course, which you would have to pay for. There are filing fees and legal fees that become your responsibility as the process moves along. You cannot roll these fees into your filing because the federal government does not allow it.
When you add it up, it can cost a lot of money to file for bankruptcy in Puerto Rico. That is why it is important to hire a qualified attorney. You could try to do it yourself, but if you make one mistake along the way, then you will need to hire an attorney to clean it up. Now you have the lingering fees from the time before you hired your lawyer and you have the new fees associated with hiring your lawyer. Rather than doubling up on fees, it is smart to hire a lawyer right from the beginning and get everything done right.
Another misconception about bankruptcy in Puerto Rico is that it is a very mechanical process that involves paperwork being moved back and forth. No matter what kind of filing you make, it is a very organic negotiation between you and the courts. It is important to remember that you may have some debts forgiven in a bankruptcy, but you will come out of the process with a monthly bill to pay to satisfy the debt that is remaining. Contrary to popular belief, your debt is not magically forgiven during a bankruptcy. Both forms of filing are restructuring processes that leave you with a payment to make to satisfy your debt.
As you negotiate back and forth with the courts, you will be forced to liquidate some assets to satisfy the debt. If you enter this process without a qualified attorney, then you could wind up losing a lot more than you should. The list of exemptions is something that a Puerto Rico bankruptcy attorney is very familiar with and he can use that information to help you retain your home and your precious family heirlooms. But if you go into the process without an attorney, then you could risk losing everything.
There is so much about bankruptcy in Delaware that the average consumer does not understand. The process is extremely dynamic in some respects, but very structured in other areas. If you are unfamiliar with how it works, then you risk exposing yourself to significant losses as the process moves along. When you hire an experienced attorney to see you through the process, you can salvage the important elements of your life and move forward with confidence.
A bankruptcy is a negotiation with the courts. Unless you are an experienced bankruptcy attorney yourself, you should never try to negotiate with the courts on your own. With the right kind of legal representation behind you, it is possible to come out of this process with a solid plan and a good direction for your future.
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