You should never have to choose between putting dinner on the table and paying off a mortgage. Debt can pile up incrementally, and before you know it, you are no longer able to pay your bills. Many people experience this financial stress but feel afraid to consider bankruptcy since it can be such a scary and taboo term.
If you find yourself swimming in unpaid bills, you may have searched “bankruptcy attorney near me” to consider your options. Read on as our experienced Central and South Florida bankruptcy law team from The Santos Law Offices, PA, talks about everything you need to know about bankruptcy.
What Are the Pros and Cons of Filing Bankruptcy?
Before diving into the bankruptcy process, you should consider all pros and cons. Declaring bankruptcy can offer debt relief and other positive results, though it is not a perfect solution. If you file for bankruptcy, you will also experience damage to your credit score and other adverse effects that may not outweigh the positives.
The pros of bankruptcy include allowing you to:
- Remove your tax liabilities that are older than three years
- Reduce your credit damages from lawsuits, missed payments, defaults, and repossessions
- Give yourself more time to pay off student loan debt
- End the pestering calls from creditors or anyone else seeking your money
- Maintain the ability to receive loans from specific lenders
- Keep some of your possessions exempt
- Gain a fresh start on your debt
Bankruptcy cons include the facts that:
- Most of your tax debt will not go away
- Your credit score will decrease
- You cannot file bankruptcy multiple times without waiting years in between
- Banks will cancel your current credit cards
- You will still have to pay student loan debt
- The bankruptcy becomes a public record and stays on your credit report for up to 10 years
- You might lose certain assets, like your home, car, or other expensive possessions
- It will be more challenging to receive a mortgage
What Does It Mean to Declare Bankruptcy?
Declaring bankruptcy means that you officially state that you cannot pay off your total debt, and therefore, you will lose certain items and freedoms in order to erase that debt. Before declaring and after filing, you must attend credit counseling to help you learn how to manage your finances better.
You can choose between two different types of bankruptcy:
- Chapter 7: If you opt for Chapter 7 bankruptcy, you will liquidate your assets to pay off eligible debts. You must fall beneath a minimum income requirement to qualify.
- Chapter 13: Chapter 13 bankruptcy allows you to keep all of your assets. Instead of resolving your debt, the court will work with you to pay off what you owe in more manageable chunks. Typically, this negotiation will allow you to pay less than the total amount you owe.
Why Would I Need to Declare and File Bankruptcy?
You may need to file bankruptcy if you cannot afford to pay off your debt in a reasonable amount of time. Trying to survive and pay for food, rent, and other necessities while you owe excessive money is nearly impossible. Bankruptcy is a realistic option for people who need financial relief so that they can go back to living a healthy life rather than surviving day by day.
If you’re not sure whether or not you need to file bankruptcy, you should seek legal advice. In Central and South Florida, our team at The Santos Law Offices, PA, is here to help you.
What Happens to My Credit Score After Bankruptcy?
Your credit score will substantially decrease after you file for bankruptcy. Bankruptcy means that you could not pay what you owed, so your credit score will reflect that. Luckily, you can start working immediately to bring it back up by making payments on a regular schedule. It will take a while to restore your credit.
Do I Need an Attorney for Bankruptcy?
When considering bankruptcy, you should find an attorney to help. Lawyers for bankruptcy will advise you through your best financial options and ensure that you do not face any legal issues or violation of rights from creditors.
How Can I Find Reputable Bankruptcy Lawyers?
When you’re on the hunt for a bankruptcy lawyer, you should consider what areas a law firm practices, what level of experience the attorney has in bankruptcy cases, and what their past clients have to say. The Santos Law Offices, PA, is honored that its clients have given the firm numerous five-star Google reviews.
The Santos Law Offices, PA: A Bankruptcy Attorney in Orlando and Miami, FL, With a Personalized Approach
At The Santos Law Offices, PA, we understand how easy it is to get stuck with a lot of debt. Our team’s mission is to help you protect your assets and move on from your financial troubles. We will walk you through the process, explain everything in simple terms, and treat you like you’re part of the family.
For a bankruptcy attorney near you in Florida, call us at The Santos Law Offices, PA, at (305) 417-4111 or fill out the online form for a free consultation.
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