Should I File For Bankruptcy In Orlando?
Typically, people who file for bankruptcy in Orlando are already in difficult financial circumstances, with major credit card debts when they face an unexpected crisis such as a divorce, injury, job loss, or uninsured medical expense. The result is mounting penalties with a level of debt that becomes unpayable. It is people like this that bankruptcy law has been designed to help, enabling them to make a fresh start on their lives instead of struggling under a burden of crippling debt.
Yet, even if you have huge debts that you can’t pay, you may not have to file for bankruptcy to keep your assets protected. There are Exemption Laws of Florida which means you could be judgment proof already. Should this apply to you, there’s no need to fear the credit card companies just because you owe them money. Unsecured creditors are unable to take your property if it is exempt. Harassing telephone calls can be stopped with a letter or phone call, although penalties and interest on the debt will carry on accumulating.
Are All Debts Covered?
The exemption laws won’t protect your property from every type of creditor or debt. For example, these laws don’t typically protect you from collection of tax debts or child support. Also, if you’ve purchased property that has then been put up as collateral for a purchase-money loan, the property can be taken by the lender despite the exemption laws. There are also certain kinds of debt known as non-dischargeable debts that cannot be wiped out. These include most tax debts, student loans, and child support.
How Do I Know When To File?
If you’ve found that you’ve started to liquidate your assets, rely heavily on credit cards, or withdraw money from your retirement account to cover your monthly costs for basic needs it may be time to consider filing for bankruptcy.
People who are in this vicious circle of debt are usually struggling to remain afloat while making only the minimum payments on their credit cards or even skipping payments completely. When you fall into this trap, most of the money you pay is interest so little difference is made in the total of debt you owe.
Bankruptcy helps hard-working people who’ve experienced a major financial disruption to find relief from crippling debts. While all situations are unique, there are a few key factors that suggest filing for bankruptcy is the best step for you to take. These include:
- Relying heavily on your credit cards to pay essential expenses like utility bills
- Making only the minimum credit card payment
- Failing to cover your mortgage payments and medical bills
- Moving money between different accounts
- Applying for more credit cards
- Taking out 401(k) loans or other types of retirement fund to cover your daily expenses
If any of this sounds familiar, filing for bankruptcy could help you to get out of your current situation.
Getting the right legal advice about whether filing for bankruptcy is the right choice for you is essential. The Suncoast Law, Orlando bankruptcy attorney is on hand to help.
Consulting with a professional bankruptcy lawyer is the best way to gain more control over your difficult financial circumstances. With the right advice, it’s possible to determine the right course of action and, when appropriate, to begin the bankruptcy process.
Do You Need An Attorney?
If so, post a short summary of your legal needs to our site and let attorneys submit applications to fulfill those needs. No time wasted, no hassle, no confusion, no cost.