Many people think filing for bankruptcy ruins your life. This is wildly inaccurate. For many families, filing for bankruptcy is a way to create a new start and put financial mistakes behind them. Though this is not an option for all families, it’s certainly helpful for some.
If you are considering filing for bankruptcy, it’s important that you have all of the information before you make any decisions. There are different kinds of bankruptcy, and it’s possible to make your situation worse by filing for the wrong kind. Chapter 7 bankruptcy is commonly understood and associated with the bankruptcy process. For many people, the rapid process and clean slate are advantages.
Filing for Chapter 7 provides you with a fresh start so that you can begin to immediately rebuild your finances and your credit score. Chapter 7 bankruptcy is an ideal solution for recovering from a financial hardship brought on by job and income interruption, divorce, uninsured medical expenses or excessive credit card debt. It is important to work with a legal team experienced in handling Chapter 7 bankruptcy claims.
At Badgley Law Group, our attorneys have helped countless people just like you hit the reset button on their lives with Chapter 7 bankruptcy. From our office in Orlando, we represent clients throughout central Florida. Our mission has always been to help clients to restart their lives and give them a second chance at financial stability. We understand that things happen outside of your control, which is why we provide compassionate, judgment-free legal counsel to all our clients.
Though we are compassionate, we are highly experienced in our field. No other firm can provide you with the resources that you need to navigate the Chapter 7 process with confidence. Our breadth of experience is reassuring to many of our clients, and we assure you that you are in the best hands when you work with us. Our expertise is unmatched in the state of Florida.
It’s understandable to be unsure about the bankruptcy process. Most people don’t know how the process works, especially if they’ve never had to file for bankruptcy before. If you find yourself in this position, it’s important to know there are resources. You are not navigating this process alone; our firm is dedicated to helping you.
Many people think of Chapter 7 bankruptcy as a discharge of debt. This is because it is the closest that you can get to eliminating your debt entirely.
Chapter 7 bankruptcy is the only legal method for discharging an unmanageable and out-of-control debt. Chapter 7 bankruptcy is a process of liquidating a debtor’s nonexempt assets in order to pay off creditors. It is usually the choice of persons without a regular income, little to no assets and who have been unable to service their consumer debt. The typical Chapter 7 debtor has large unsecured debt (such as credit card debt or medical bills) and hardly any assets.
Discharging a bankruptcy releases the debtor from most types of debts; the bottom line, once your bankruptcy is discharged, you won’t be forced to pay those debts. The discharge is a permanent legally binding order that stops any further actions on the part of lenders and collection agents.
If you have exhausted all your other avenues and you opt for this type of financial relief, you need to be aware of the stipulations required to discharge your bankruptcy. The timing of a discharge is usually 4-6 months after the bankruptcy petition is filed.
After a Chapter 7 discharge, the debts are eliminated permanently. After the bankruptcy court grants you a discharge, your creditors are barred from ever collecting the debt.
Assets are a key part of your Chapter 7 filing. Nonexempt assets can, and likely will, be taken from you and sold to pay your debts. Unfortunately, trustees are not terribly forgiving during this process, so it’s important to know which of your assets are on the line when you file for Chapter 7 bankruptcy.
Nonexempt assets include large purchases, such as your home, new cars, valuable jewelry, etc. Much of what most people consider to be assets will be taken by the state. You will likely only be able to retain a reasonable amount of clothes, furniture, etc. Assets of value will be sold during the bankruptcy proceedings.
Fortunately, you will be able to retain welfare support if you receive it and other similar sources of assistance. Our Orlando Chapter 7 bankruptcy attorneys can help you get a better idea of which of your assets you may be able to keep and which will likely be taken from you.
Everyone who files for Chapter 7 bankruptcy will be required to take a ‘Means Test.’ If a debtor’s average monthly income over the preceding six months is below Florida’s median income for a similarly sized household, they automatically qualify to file for Chapter 7 bankruptcy. You have to be beneath a certain income threshold to qualify. Our lawyers will help you with the test to determine whether or not you would qualify.
Filing for bankruptcy is a big deal. It is a significant legal decision that will affect your life for many years. It is important that you understand the gravity of your situation and treat it with the kind of seriousness required. Hiring an attorney shows the court that you are serious about fixing your situation and improving your habits. This can only help your case.
The bankruptcy process is also involved. There are many moving parts, and not everyone is eligible to file. The details are confusing, even to many people in the legal field. Your bankruptcy case requires a specialized Orlando Chapter 7 bankruptcy attorney, like our team at Badgley Law Firm. We can help you to navigate the changing landscape of your situation and create a reliable future for your family.
Though it may be tempting to file for bankruptcy without an attorney, it is never a good idea. There may be options, caveats, or assistance that you are eligible for but about which you don’t know. Our attorneys can help you to make informed, empowered decisions about your bankruptcy process.
Many people are concerned about their credit score if they file for bankruptcy. This is a valid concern, as bankruptcy will have a direct effect on your credit score.
It’s true that your credit will suffer as a result of your bankruptcy filing. However, it’s important to consider whether your credit is thriving as things are. Many people who consider bankruptcy owe a significant amount of money, which directly affects their credit score. You may not have much to lose when it comes to your credit score.
It’s also important to remember that you will still have options to build your credit after you file for bankruptcy. There are specialized credit cards and programs that can help you to rebuild credit and solidify your financial standing. It’s simply important to be careful with these cards, so you don’t find yourself buried in debt once again. If you are smart and safe while you rebuild your credit, you should be able to create a solid credit foundation for your future.
Finally, bankruptcy only remains on your credit score for ten years. After this time, potential creditors will not be able to see that you filed for bankruptcy; they will only be able to see your score. If you manage your situation correctly, you could be in good financial standing a decade after your bankruptcy filing.
It’s important to understand that there are other options when it comes to filing for bankruptcy. You do not have to file for Chapter 7 specifically, for example. Chapter 13 bankruptcy is a different option that may be available to you. For the latter, there are limits on how much you can have in secured and unsecured assets, respectively.
Chapter 13 bankruptcy does not clear your debts as Chapter 7 does but instead creates a plan for you to pay off your debt. This may take years to complete, but the process can help you stop creditors from harassing you. Another benefit lies in retaining your assets while you pay down your debts.
Chapter 13 bankruptcy is not for everyone, but it’s important to discuss it with your attorney.
You deserve to have a healthy and prosperous financial life. Get your financial life back on track with the fresh start a successful bankruptcy can provide. Your best chance for success in this process is with an experienced Orlando chapter 7 bankruptcy attorney . Contact us online or call 407-781-0420 to take the first step today.