• Impact of Bankruptcy

    You Can Stop Debt Collectors from harassing you or even contacting you!

    Filing means submitting your documents, called a Petition, with the Court and having a File Number assigned. Once this is done, an Automatic Stay is put into effect making sure debt collectors may no longer contact you directly to attempt to collect the debt. This does not apply if you DO NOT hire an attorney and are representing yourself in your own filing, however – THEY WILL STILL BE ABLE TO CALL YOU.

    Under normal circumstances, if you hire an attorney to represent you, the creditors must contact your attorney. If you represent yourself, then they are allowed to contact you even after you have filed.

    Benefits Of Filing Bankruptcy
    The most dramatic benefit to filing for bankruptcy in Florida is that creditors must immediately cease collection actions pending the outcome of the bankruptcy. As soon as the petition is filed by your Florida Bankruptcy Attorney, your creditors will receive notice and they must stop contacting you. If they do continue to contact you, please let your Florida Bankruptcy Attorney know. Anther major benefit is that it allows you to start over from scratch without burdensome debt, and with some assets to minimize the risk of your being bankrupt again.

    What is Bad about Filing Bankruptcy ?
    Obviously the worst effect is that your credit report will state that you filed bankruptcy. However, all of your negative history will be zeroed out.  So what’s better: multiple lines of derogatory information on your credit report or one? Once you file bankruptcy, a Chapter 7 could stay on your credit report for 10 years and a Chapter 13 for 7 years.  All of your negative history (that would be present if  you don’t file for Bankruptcy) could stay on your credit report for just as long – OR LONGER!  You may not, under current law, be discharged from a Chapter 7 if you were previously discharged from another Chapter 7 within the previous 8 years.

    Filing bankruptcy can make it more difficult for you to obtain credit, buy a house, car, or get other financing. MANY PEOPLE ARE ABLE TO GET A MORTGAGE TO BUY A HOME 18-24 MONTHS AFTER BANKRUPTCY.  However it isn’t impossible to get financing, just harder, and your interest rates may be higher than someone who had never resorted to filing. On the other hand, creditors know you can’t file for another 8 years or so, and many are quite happy to extend credit to you right away after filing.

    Is Filing Bankruptcy Right For You?
    The best way to determine whether or not to file for bankruptcy is to talk to an attorney.  You should look at the economic benefit of not having to pay your debt back.  Did you know that paying only your minimum monthly payment at 2% of your balance could take you 30 years to pay off!

    Filing bankruptcy is drastic but can also be the fresh start you need. In many cases and for many people it is often a GOOD BUSINESS DECISION.  Bankruptcy is really the very last resort for debt relief. If you can’t afford to pay your bills, you have no savings, and have tried credit counseling, then consider filing.

    THE BOTTOM LINE:

    Here is the secret to your decision and what any competent attorney will tell you: If you can’t afford to pay off all of your bills in several years, while still paying for your necessities of you and your family you should consider filing for bankruptcy.  If you absolutely do not want to file for bankruptcy, it may be possible for you Florida Bankruptcy Attorney to assist you in reducing your current payments (and balances) to 50% or less.  Together, through bankruptcy or not, we can help you design a plan to release your from the constant struggles of debt.

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