Tuesday, February 19, 2019

Are You Considering Filing for Bankruptcy?

bankruptI keep seeing advertisements on TV saying that if you have more than $5000 in credit card debt, they can fix it so that you only have to pay back a fraction of that. What? I have no idea how that's even supposed to work, but it seems kind of crazy. I don't understand that any more than I understand other options like bankruptcy, but I do have some bankruptcy information to share. Hope it helps.

If you’ve been considering filing for bankruptcy, it can be hard to know what to file. Chapter 7 and Chapter 13 come with their own advantages and disadvantages. Here is a list of the differences between the two.
  • Chapter 13 - a Chapter 13 lawyer Orlando FL can help you file your bankruptcy with the courts. Also known as a readjustment bankruptcy, Chapter 13 gives you time to pay back some of your debts over the course of 36 to 60 months. The ability to restructure current debt such as auto loans or home mortgages can help you keep your assets while catching up on payments. This form of bankruptcy is a good option for those unable to meet the income requirements of Chapter 7 but still needing relief from debt. Such debt relief can come in the form of child and alimony payment extensions, credit card debt relief, avoiding wage garnishment and even stopping litigation due to debt issues.
  • Chapter 7 - for those that qualify based on income, a Chapter 7 bankruptcy may be a good fit. More and more Americans may be choosing this form, but is it right for you? Debtors often get immediate debt relief with a trustee appointed to handle selling any nonexempt property. The trustee provides creditors with the assets gained to help cover the debts. After the trustee completes the sale and distribution, the court closes the case. The debtor does not have to repay the debt. Future property acquisitions are generally safe if acquired more than 180 days after the case is closed.
For more information on the differences and which one is right for you and your situation, consult a bankruptcy attorney. Many offer a free consultation to help you see if they are a good fit. Bankruptcy may be the right choice for those with lowered incomes and crippling debt who are looking for a fresh start.