For some people, filing a personal bankruptcy can provide the opportunity for them to reset their finances and give them hope for the future. It can provide a new chapter free from the debts that many times accrue through no fault of the debtor. A bankrptcy doesn’t mean a person is irresponsible; many times, unintended debts can pile up leaving few options. Medical emergencies, natural disasters with not enough insurance, and unforeseen home or car repairs are just a few of the ways unintended debts can pile up.
A Chapter 13 bankruptcy is, to put it simply, a type of court-supervised payment plan. When you enter into this agreement, you will pay your unsecured and secured creditors each month, based on your income and any reasonable expenses. It is a court ordered reorganization plan that needs not only the approval of the courts but of creditors as well.
The decision on whether or not to file some sort of bankruptcy is a big one and it will affect your finances and credit for years to come. And although the number of bankruptcies filed has been dropping in recent years, there were still over 800,000 filed in the year 2016 in the U.S. Bankruptcy in Florida, which makes it a very busy place. In January of 2018, the bankruptcy court in Orlando had 1203 Chapter 7, 26 Chapter 11 and 529 Chapter 13 cases for a total of 1758.
In 2016, almost 1 million people in the U.S. filed for some form of bankruptcy, the most common being Chapter 7 protection, which differs from Chapter 13 in that a repayment plan does not need to be filed. Those who file for Chapter 7 will take a major hit on their credit, possibly dropping their credit score 200 points or more. There is no doubt that this is a major financial blow – as were the events leading up to the bankruptcy, in all likelihood – but the mistake many people make is in seeing their filing as an end; as something that can’t be recovered from.
So, you’re on the path to filing for bankruptcy, and you’ve just had a realization: “I may have chosen the wrong attorney. I’m afraid this won’t go well for me.” When it comes to your financial future, trust and confidence is fundamental, and perhaps your attorney has done something (or failed to do something) that has ultimately compromised that trust and confidence. You may be legitimately concerned that the lawyer you chose to do your bankruptcy case is not going to do a good job This is a serious concern when your financial future is on the line.