Countless people throughout the Sunshine State are struggling with overwhelming debt. They are unable to pay their mortgage, make their car payments or even pay their basic utility bills. When your spending options are limited, it can be a helpless feeling. The easy answer is to file for bankruptcy. Yet, many Floridians choose to avoid bankruptcy. Just the word itself can seem scary to many people. But the truth is bankruptcy is one of the most effective methods of debt relief and can help people get a fresh new start on their finances. If you have run out of options, it is never too early to get started with the process.
Chapter 7 vs. Chapter 13 Bankruptcy
When visiting a bankruptcy attorney, it is important to discuss all of the details of your debt. Do you own money on your student loans? Are you facing a foreclosure? What is your present income? These just a few common issues that must be addressed your lawyer before deciding to file for bankruptcy. Once you have painted a clearer picture to your attorney, it is then time to decide which type of bankruptcy best suits your situation–Chapter 7 or Chapter 13.
Most people choose to file for Chapter 7 bankruptcy, which is designed to resolve debt through the liquidation of assets. First, you must pass a means test to qualify. The test will determine whether you earn enough income to pay off your debt. Those who earn too little will qualify for Chapter 7. Once you are approved, the court will then appoint a trustee who will determine which assets will be liquidated to pay off your debt.
If your income is too high to qualify for Chapter 7, you may be eligible to file for Chapter 13. Unlike Chapter 7 bankruptcy, it does not involve the liquidation of any assets. Instead, you can resolve your debt through a payment plan. Chapter 13, is a slower process and usually takes between 5 to 7 years
When is the Best Time to File For Bankruptcy?
Not everyone struggling with debt is in the same situation. There may be some debt relief solutions outside of bankruptcy that can help. However, if you answer yes to at least two of the following questions, it may be time to seek advice from a bankruptcy attorney.
• Do you pay only the minimum balance on your credit cards?
• Are you getting constant phone calls from creditors and bill collectors?
• Do you use credit cards to pay for your necessities?
• Are you uncertain how much money you owe?
• Are you considering debt consolidation?
• Are you afraid to start sorting out your finances?
Are You Stuck in Overwhelming Debt? Contact the Wesley Chapel Bankruptcy Attorneys at DHW Law
Getting into debt is easy. But getting out is another story. If you have run out of options, it may be time to file for bankruptcy. Over the years, the bankruptcy attorneys at DHW Law have successfully helped many clients resolve their debt and move on with their lives. Whether you are looking to file for Chapter 7 or Chapter 13 bankruptcy, the legal team at DHW Law will always be in your corner. To learn more, contact their law office in Wesley Chapel and schedule a consultation to discuss your case.