Bankruptcy is a legal proceeding that helps people like you who cannot afford to pay their debts to their creditors. This allows you to get a temporary or permanent fresh financial start and prevents creditors from collecting debts from you. It is considered a debt management tool and a last resort, as it will stay on your credit report for 10 years. A professional bankruptcy attorney can learn about your financial situation and determine whether or not bankruptcy is a good choice for you.
What does bankruptcy do for you?
Filing for bankruptcy helps you to eliminate the legal obligation to pay some or all of your debts. It also can stop foreclosure on your home and give you a chance to get caught up on payments that you’re behind on. It also can prevent repossession of a car or other property too.
What can it not do?
However, it cannot cure all of your financial issues. It usually will not eliminate debts such as student loan debt, tax debt, alimony or child support. Also, if loans have cosigners, the cosigners may be required to repay all or part of the loan back.
What are the different types of bankruptcy?
Chapter 7 bankruptcy is when all debts are discharged by forfeiting property to the trustee to satisfy debts.
Chapter 13 bankruptcy is a reorganization of debt, which is a debt adjustment plan. You can prevent creditors from contacting you as long as you’re making your required payments on time.
Can I Own Anything After Bankruptcy?
Yes, you can. If you receive a life insurance, property settlement or inheritance within 180 days of filing for bankruptcy, you must turn over that money to creditors.
Does bankruptcy affect your credit?
Yes, but not as much as you think. Because it wipes out old debt, you are in a better position to pay new bills and to improve your credit score in the future.
Schedule a Consultation to Discuss Bankruptcy in Florida Today
When you’re considering bankruptcy in Florida, Mancuso Law, P.A. can help you. We serve the Boca Raton, FL area. We provide consultations where you can learn about our experience, our services and answer any questions you have about the upcoming process. To learn more about your bankruptcy options and to schedule a consultation with our professional attorney, call 561-245-4705 our law office today.