To File or Not to File for Bankruptcy | Bankruptcy Lawyer Melbourne, FL
Deciding on whether or not to filing for bankruptcy can be tough. You might know that you could lose your assets or be unable to take out a loan for a specific period of time. Your credit will be affected, but your unsecured debt may be forgiven or reworked into a practical
payment plan. With so many advantages, disadvantages, and things to consider, it is advisable to always speak with a bankruptcy lawyer in Melbourne, FL first from Arcadier, Biggie & Wood, PLLC. A lawyer can understand your unique situation and let you know what your best option might be – this may or may not include bankruptcy.
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Factors to Consider Before Filing for Bankruptcy
1.Know Your Options – There are two types of bankruptcy individuals can file: Chapter 7 and Chapter 13. With Ch. 7, your debts may be resolved within 3-6 months, but you may lose your personal property. Chapter 13 is a bit more complicated, but involves a repayment plan based upon your disposable income. Your debt may be reduced and you may get to keep your assets.
2.Learn About Alternatives – Not everyone is an ideal candidate for bankruptcy. There are alternatives that may be able to help you reduce your debt in a practical manner. A Melbourne bankruptcy lawyer can explain these to you during your initial consultation, if relevant to your situation.
3.Find Out If You Are Eligible – Before you file for bankruptcy you will have to meet certain requirements. For instance if you make enough income to pay off your debts through Ch. 13, you may not be able to file for Ch. 7. Furthermore if your debt is too high or too low, you may not be applicable for bankruptcy.
4.Understand Secure vs. Unsecured Debts – Not every type of debt is forgivable. For example alimony, student loans, tax debts, child support, and government loans will likely still need to be paid regardless of what type of bankruptcy you file for.
5.Find Out What Will Happen to Your Assets – If you are unable to make payments on a mortgage or car because of other debt, you may want to consider Ch. 13; otherwise, you could lose these assets from filing for Ch. 7.
6.Determine Whether or Not Your Credit Card Debt Will Be Relieved – Credit card debt is not always forgiven. This is especially true when you have lied on a credit card application or knowingly spent above your financial means.
7.Confirm Your Pension is Safe – Most states have laws that protect life insurance and pension plans from being affected by bankruptcy. You should confirm this with a bankruptcy lawyer in Melbourne, FL.
8.Find Out if Co-Signers Will Be Stuck With Your Debt – If you any of your agreements or contracts have a co-signer, it is possible that they will have to make payments on your debt. This can be a very serious matter so you will want to verify whether or not this holds true for your situation.
Do You Have Further Questions About Filing for Bankruptcy?
If you are in a position to consider Chapter 7 or Chapter 13 bankruptcy, you likely are facing complicated financial matters. Rather than trying to resolve this on your own, it is advisable to find out what options are available and whether or not bankruptcy is right for you. A bankruptcy lawyer Melbourne, FL trusts from Arcadier, Biggie & Wood, PLLC can provide you with legal advice that may help you to get your financial affairs back under control.