If you are facing overwhelming debt or are dealing with an unlivable financial situation, the protections offered by the bankruptcy code might be right for you. Filing for bankruptcy protection could protect your livelihood and provide the fresh financial start you need.
If you are considering bankruptcy, a lawyer from our Melbourne office can help. You do not have to let the weight of crushing debt prevent you from living your life. The protection of the bankruptcy code could allow you to get back on firm financial footing quickly.
The Benefits of Bankruptcy
Many residents of Melbourne file for the protection of bankruptcy each year. They do so for good reason: bankruptcy can offer protection from creditors that would be otherwise unavailable. Some of the benefits these filers may enjoy include:
The Automatic Stay
The first benefit of filing for bankruptcy kicks in the moment your petition is filed. The automatic bankruptcy stay protects you from collection efforts by your creditors immediately upon filing for bankruptcy. While the stay does not cancel the debt you owe, it freezes any efforts by your creditors to collect on that debt. The automatic stay allows the bankruptcy process to unfold without the pressure of aggressive creditors complicating the process.
The automatic stay can benefit you in many ways. From the very beginning of your case, it will prevent your creditors from:
- Garnishing your wages
- Filing lawsuits against you
- Making collection calls
- Repossessing your property
- Foreclosing on your home
Not only does the automatic stay prevent future collection actions against you, but it also protects you from ongoing proceedings as well. Lawsuits or foreclosures that have already begun will be paused by the court during the course of the bankruptcy process.
The automatic stay is temporary. In fact, certain debtors could attempt to lift the stay in an effort to pursue secured debts that you owe them. We can advise you on when these exceptions are available and how they could impact your case.
Discharge of Debts
Ultimately, the goal of a bankruptcy case is for a debtor to discharge their debts. When a debt is discharged, it is no longer acknowledged under the law. Creditors may not collect on discharged debts. Essentially, you can proceed as if you never owed the money in the first place.
Not all debts are dischargeable, as certain types of debts will survive a bankruptcy case. Some examples include student loans and unpaid child support.
Keeping Your Property
Many people assume that filing for bankruptcy will cost you everything you own. That is not the case. While there are types of bankruptcies that can require you to liquidate some of your assets, the law provides for many exemptions that could protect your property from liquidation.
What’s more, filing for bankruptcy could put you in a position to keep property that you might have otherwise lost to your creditors. You could restructure a mortgage or get caught up on your car payments during the process. An attorney from our Melbourne office could advise you on how bankruptcy could improve your chances of keeping the property that matters to you.
How Bankruptcy Impacts Your Credit Score
It is true that filing for bankruptcy will harm your credit score for a period. The act of filing for bankruptcy could remain on your score for up to 10 years after filing.
However, the reality of the situation is often not so bleak. If your score is already especially low, there might not be much room for it to fall due to a bankruptcy filing. Over the long term, filing for bankruptcy could have a positive impact on your credit score by enabling you to make your payments to your creditors on time in the future.
To consult with an experienced bankruptcy lawyer serving Melbourne, call 855-686-6752
Types of Bankruptcy Cases
There are several different types of bankruptcies under federal law. Each different type of bankruptcy case is covered in a different chapter of the bankruptcy code. The types of bankruptcies that are a common option for most individuals are Chapter 7 and Chapter 13.
Chapter 7 bankruptcy involves liquidation as a means of addressing bankruptcy, according to the United States Courts. This type of case is intended for those individuals without any assets to pay back their creditors.
That does not mean you can only file if you are destitute. However, there is a means test that could prevent you from pursuing a Chapter 7 case if you earn too much, according to the Florida Bar. Chapter 7 cases can last less than a year.
Chapter 13 bankruptcies can take much longer than a Chapter 7 case. In some cases, these bankruptcies will last for years. This type of case also requires that you pay back more of your debt before you are entitled to a discharge.
During the course of a Chapter 13 bankruptcy, you will work with the U.S. Trustee to pay some of your creditors back through monthly payments. At the end of your case, the court may discharge what is left of your debt.
Melbourne Bankruptcy Lawyer Near Me 855-686-6752
We Can Help You Seek Protection Under the Bankruptcy Code
If you have questions about what bankruptcy could mean for you, let the attorneys of Bogin, Munns & Munns help you to understand what to expect. The bankruptcy process might seem foreboding, but we can help to ensure that it goes smoothly. We can help you avoid any pitfalls while seeking the fresh financial start you deserve.
If you are ready to get started, contact a Melbourne bankruptcy lawyer from our firm right away. Call (321) 254-3939 for your free consultation.