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Florida Bankruptcy Lawyer
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How bankruptcy may help a debtor

Florida residents who are struggling with their financial obligations may benefit from filing for bankruptcy. However, it is a decision that shouldn’t be made lightly. It is important to know that it can stay on a credit report for up to 10 years. This may make it more difficult to get a job or obtain housing. It may also make it harder to get the best rates on an insurance policy.

Prior to actually filing, it may be worthwhile to talk with a lawyer and a credit counselor. Doing so provides a debtor with objective viewpoints as to whether bankruptcy is the right option. Credit counselors may suggest alternatives to bankruptcy while a lawyer may also offer advice that can help a debtor manage his or her debt. The final step is to determine what type of bankruptcy to file for.

Chapter 7 bankruptcy sees a trustee liquidate non-exempt property with the proceeds going to creditors. However, once a liquidation case is discharged, a debtor generally has no obligation to make further debt payments. Under Chapter 13 bankruptcy, debts are repaid over three or five years pursuant to a court-approved plan. It is designed for people who have a regular and reliable source of income.

Bankruptcy may be an option for those looking to manage their debt or to gain a fresh financial start. It may also allow a debtor to avoid creditor phone calls or other forms of contact. There are a variety of eligibility requirements associated with both chapters that a lawyer can describe in detail.

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