Need Debt Relief and Considering Bankruptcy?

Let Our Ft. Lauderdale Bankruptcy Lawyer Explain the Process

At this point, your financial burden may be beyond your ability to cope and you are probably tired of creditor calls; now it is time to research your options. Bankruptcy allows people who have fallen woefully behind on bill payments to have a fresh start and, in many cases, you can maintain assets and property and your credit will not suffer. If you are confused about your situation, Ft. Lauderdale bankruptcy attorney Jeffrey Solomon can counsel you about your options and the different types of bankruptcy.

Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy

The law provides several forms of bankruptcy – Chapter 7 Bankruptcy and Chapter 13 Bankruptcy. There is also a chapter 11 bankruptcy for business reorganizations. In a Chapter 7 Bankruptcy, the individual in debt does not have to set up a payment plan to repay his creditors. To eliminate debts, the court sells anything the debtor owns, unless it is exempt. The good news is, in most cases, almost all assets have protection and the debtor will not lose anything.

Chapter 7 Bankruptcy can eliminate many types of debt:

• Foreclosure deficiencies
• Credit card debt
• Medical expenses
• Lines of credit
• Some taxes
• Most judgments
• Unsecured loans

A Chapter 13 Bankruptcy acts slightly differently. It helps people who have a regular income to set up an affordable payment plan and may shrink the amount of debt that they will have to pay off. The payment plan usually spans 3-5 years, and complete debt relief waits at the end of it. In a Chapter 13 Bankruptcy, you can save property that you would lose in a Chapter 7.

A Chapter 13 Bankruptcy can also save your home from foreclosure or other property from repossession. However, if you are facing these realities currently, you must act quickly because it can take time for bankruptcy to get under way. Additionally, under a new law, you must take a credit-counseling course before you may file.

After Filing for Bankruptcy

After filing a bankruptcy, you can begin afresh, but habits will have to change. Initially, you may experience a dip in your credit score, but it is actually easier to rebuild it after a bankruptcy than if you still have thousands of dollars in debt you can never pay.

You may also still obtain credit after a bankruptcy. It is important to keep only one credit card, and pay it off in full at the end of each month to prove to creditors you have grown in your financial responsibility. You may also research and learn the many ways to avoid debt in the future and adjust your credit card spending accordingly.

You likely have many people speculating on your best course of action, or you may feel alone and confused. The best way to put your worries to rest is to speak to someone you know you can trust who will give you the most accurate information and caring advice. Contact Ft. Lauderdale bankruptcy lawyer Jeffrey Solomon and get your life back on track.