Getting real about bankruptcy
When Florida consumers are faced with significant debt, bankruptcy is often a consideration. Unfortunately, many people dismiss the idea of bankruptcy due to misconceptions about how it works and the effect it will have on their personal finances.
While filing for bankruptcy can be stressful, the consequences of uncontrolled debt, including foreclosures and creditor harassment, can be even more so. In addition, many of the concerns that people have about what will happen to their property and credit history in bankruptcy are either unfounded or greatly exaggerated by the media.
For example, many people are concerned that they are going to lose their home, car and other assets in a bankruptcy. However, debtors are only required to have some of their assets sold in a Chapter 7 bankruptcy. Debtors with a reliable income may be able to file for Chapter 13 bankruptcy, which does not require a liquidation of assets. In addition, even individuals who file for Chapter 7 bankruptcy are entitled to some exemptions that often allow them to keep all or most of their personal property during the process.
While it is true that bankruptcies remain on credit reports for seven to ten years, the impact lessens over time. Receiving a fresh start financially can also stop the ongoing reporting of delinquent and charged off accounts, both of which have a negative effect on credit scores.Individuals and married who are considering bankruptcy may benefit from speaking with an experienced lawyer. Counsel could review their case and make recommendations regarding other forms of debt relief well as the type of bankruptcy they may qualify for.