If you’re having trouble paying your bills, bankruptcy in Florida can be the answer. Borrowers who file for bankruptcy can immediately halt all collection attempts and start again. After declaring bankruptcy, all phone conversations, wage garnishments, foreclosure sales, and collection notifications must cease immediately. Bankruptcy also gives a debt discharge, allowing people to start over and rebuild their lives. Bankruptcy in Florida offers many advantages, but it is not appropriate in every scenario. If you are considering bankruptcy, please read the following guide to understand the considerations before filing for bankruptcy.
Important aspects to take into consideration for filing for bankruptcy in Florida
The dilemma about whether or not to declare bankruptcy is one that most individuals do not consider carefully. After all, there are consequences associated with the choice. Today, we’d want to look at a few aspects you should consider and discuss if you’re considering filing for bankruptcy.
First and foremost, it’s critical to stress that each person’s circumstance is different, and there are no “one-size-fits-all” solutions to financial problems. Likewise, not everyone is at the same place in life, and all of these aspects must be considered before making a major financial choice like whether or not to file for bankruptcy.
- Bankruptcy Alternatives
Bankruptcy is sometimes referred to as a “final resort” for financially distressed people. This piece of advice is very simplistic. Delay can sometimes result in the loss of legal rights. If you want to pursue bankruptcy to save your house or automobile, it’s very crucial to receive legal guidance as soon as possible. While bankruptcy can assist avoid a foreclosure or repossession, after the sale procedure is complete and your property ownership in the collateral has been terminated under Florida law, bankruptcy normally won’t be able to help in every case which is why it is important to have a bankruptcy attorney on your side.
It may make sense to look into alternatives to bankruptcy. An out-of-court settlement with creditors, mortgage modifications, or negotiating a decrease in payments to creditors are some of the options available. A bankruptcy lawyer can assist you in reaching an out-of-court settlement or arranging alternative forms of relief.
- Choosing the type of Bankruptcy
Depending on your income and circumstances, you may qualify for either Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy is for persons who are legitimately unable to pay their debts. Some persons have an excessively high income and are therefore ineligible for bankruptcy. To be eligible, you must make less than the state’s median income for a family of your size.
Whether your income is higher than the state’s median, you may be able to pass a “means test,” in which a court trustee looks at your income and “reasonable” costs to see if you could pay your bills or if you need the Chapter 7 bankruptcy relief.
The other option is Chapter 13 bankruptcy, sometimes known as “wage earner’s bankruptcy” since it requires you to have a stable source of income and unsecured debts of less than $394,725 and secured obligations of less than $1,184,200.
The legal criteria for each chapter will, in most situations, decide which you can file. If you find yourself in the following situations, bankruptcy may be a good option for you:
- Your financial condition isn’t improving – If the amount on your obligations isn’t decreasing, or perhaps increasing, your minimum payment method is failing. Bankruptcy may be able to help you get out from under your obligations and start over.
- You’re concerned about your retirement – If you’ve used your retirement funds to pay off debts, you’re doing a disservice to your future self. A bankruptcy filing is frequently a viable alternative for preserving the income you’ll need after retirement.
- Other people rely on you – If you have a spouse, kid, senior family, or other loved one who relies on you for assistance, having enough money to handle emergencies and health insurance — not unsecured loans — is critical. Bankruptcy allows you to prioritize your priorities.
- You might lose your house or car – Foreclosure or repossession is frequently the final straw that prompts a bankruptcy petition. Bankruptcy may be able to help you escape repossession and save your house.
- Creditors’ negotiations
You should first try to work out a payment plan with your creditors that will allow you to pay off your obligations. Allowing someone to intimidate you or persuade you to do something you don’t want to do is a bad idea. Some trustworthy firms can help you consolidate your debt into more manageable installments, as well as several fraudulent companies. When seeking debt consolidation services, make sure you understand the procedure and any documentation you’ll be required to fill out. You must study what you’ll have to do and engage a bankruptcy attorney to guide you through the process.
- Re-consider filing for bankruptcy
If you know you won’t be able to pay any of your present bills, you should consult with a bankruptcy attorney at Serrano Farah Law LP in Florida to determine what choices you have. For someone who knows they will not be able to pay back their debts, bankruptcy is often the best option. It’s especially useful if you’ve been considering filing bankruptcy recently because the laws have recently changed, and you should be informed of these changes before filing.
To be discharged from their bankruptcy case, those who file for bankruptcy must satisfy several financial commitments, according to the new bankruptcy laws. Failure to satisfy the criteria of your bankruptcy case or to fall behind on your responsibilities is a severe concern. This is why it’s critical to notify your creditors as soon as you’ve decided to file for bankruptcy or make an arrangement prior as discussed above.
- Hire a Florida Bankruptcy Attorney before filing for Bankruptcy
It helps to have a highly skilled attorney on your side while you are coping with one of the most difficult moments of your life. It might be difficult to decide which bankruptcy legal firm to choose in Florida because there are so many.
Allow us to assist you in getting out from under that crushing pile of debt, ending restless nights and harassment from debt collectors at work and home. You can have the new beginning you desire.
Contact our Florida bankruptcy lawyer at Serrano Farah Law LP to schedule a consultation if you are considering bankruptcy.