If you are overwhelmed by debt and are ready to put an end to the collection calls, filing for bankruptcy might be in your best interest. The moment you file, you could halt all collection efforts against you. Saint Cloud residents take advantage of the protection of the bankruptcy code each year.
A lawyer from our team can advise you through every step of your own bankruptcy case. We can help you avoid any delays or mistakes that could jeopardize your discharge, ensuring a smooth filing and the best possible outcome for you.
The Benefits of Bankruptcy
There are many benefits of filing for bankruptcy protection. In fact, many of the important benefits that come with filing for bankruptcy take effect the moment you file your petition. Some of these benefits include:
- The automatic stay. When you file for bankruptcy, immediate help will arrive in the form of the automatic bankruptcy stay. The automatic stay bars your creditors from attempting any collection efforts. You can expect a pause on any lawsuit proceedings, collection calls, or wage garnishments.
- Halting legal proceedings. The automatic stay can also halt legal proceedings against you. For example, a lawsuit that has not yet been resolved will be put on hold during your bankruptcy case. Importantly, you can also stop repossessions, foreclosures, and evictions.
- Improved credit score. It might not happen right away, but a bankruptcy discharge could improve your credit score over time. For some people already dealing with low credit scores, this improvement could come quicker than you might think.
- Firm financial footing. Many people are able to walk away from a bankruptcy case on solid financial ground. Not only are many of their previous debts dealt with, they could be in a position to keep up with their expenses moving forward.
These are only a few of the benefits that can follow a successful bankruptcy case. To learn more about the value of discharging your debts, you can discuss your case with a bankruptcy lawyer on our team.
To consult with an experienced bankruptcy lawyer serving St. Cloud, call 855-780-9986
Types of Bankruptcy Cases We Handle
Not every bankruptcy filing is exactly the same. While there are multiple chapters within the bankruptcy code, two of them apply most often to individual consumers. While these two types of bankruptcies have some similarities, they also have some important differences.
The two common forms of bankruptcy are referred to as Chapter 7 and Chapter 13.
Informally, Chapter 7 bankruptcy is referred to as liquidation bankruptcy. This is the case because the trustee overseeing the case could liquidate some of your assets during the bankruptcy process.
Despite the risk of having your assets liquidated, Chapter 7 is beneficial for most filers. Benefits include:
- It is the quickest form of available bankruptcy, rarely taking longer than one year to complete. At the close of the case, debtors typically see the vast majority of their debts wiped out thanks to a bankruptcy discharge.
- For many people, filing for protection under Chapter 7 of the Bankruptcy Code does not require the liquidation of all assets. Many filers lack the assets needed to pay off creditors. Even if you have assets, there are many helpful exemptions that may be available in your case. For instance, in Florida, you may be able to exempt your home, according to Florida Statutes §222.01.
There is an important drawback when it comes to Chapter 7 bankruptcy. This drawback is known as the means test. Every debtor must qualify under the means test to be eligible for Chapter 7, according to the Florida Bar.
If a debtor makes too much to qualify, they may be required to pursue Chapter 13 instead.
The process of obtaining a bankruptcy discharge under Chapter 13 typically takes much longer compared to Chapter 7. Chapter 13 is often referred to as reorganization bankruptcy. The process is not about liquidating, but is instead more about reorganizing your financial obligations to allow you to meet them in the future.
That does not mean that a discharge is not available. Many of the same debts dischargeable under Chapter 7 and are also available under Chapter 13. However, the process could take as long as several years to complete.
With a Chapter 13 bankruptcy:
- You are required to develop a plan that must be approved by the court. The plan will set out your secured and unsecured debts and outline what you will pay toward those debts each month.
- It is your obligation to make these monthly payments to the bankruptcy trustee. The trustee will distribute the payments to each creditor, which may cover a portion of your old debt as well as your new obligations.
- The goal of Chapter 13 is to allow you to get caught up on paying debts, like your mortgage.
Our team can analyze your situation and help you determine which option would best fit your needs.
St. Cloud Bankruptcy Lawyer Near Me 855-780-9986
Discuss Your Options During a Consultation with a Member of Our Team
It is understandable if you are hesitant to pursue a bankruptcy claim. After all, the short-term challenges that can come with bankruptcy can be disruptive. However, the bright side is that these cases can also dramatically improve your financial footing for the rest of your life.
If you have questions about whether bankruptcy is right for you, a lawyer from Bogin, Munns & Munns is here to help. To learn more about how bankruptcy could work in your favor, call (407) 556-3994 for a consultation.