Contrary to popular belief, bankruptcy is not a “cure-all” solution to debt problems. In some cases, bankruptcy can actually make matters worse. It is important to consult with an experienced attorney before considering bankruptcy. Some debts may not be discharged through bankruptcy and even after a necessary bankruptcy, the effects can last decades.
Bankruptcy leaves a 7 year long black mark on your credit report and will further damage your credit score, making it difficult if not impossible to borrow money again for quite some time. For many Floridians, bankruptcy has been a savior, but it isn’t right for everyone.
Chapter 13 bankruptcy, or as it is commonly referred to as, the “wage earner’s plan,” combines all unsecured debts, such as medical bills and credit cards, and creates a court-approved repayment plan. Under this form of bankruptcy, a person may keep their assets. Payments will be made every month for 3-5 years, often times interest free, with any remaining debt being discharged or eliminated. Chapter 13 is an effective method to stop foreclosure, catch up on late bills, and restructure loans to better pay off your debts.
Chapter 7 bankruptcy is mainly for business owners, but is available to individuals in certain cases. This form wipes away all debts and gives the debtor a clean start, but may require any non-exempt assets to be liquidated and used to pay off some of the debts. However, a skilled attorney can help the borrower keep essential assets like a residence or vehicle. It also protects retirement accounts, benefits, savings, and pensions.
Boss Law represents borrowers with:
- Chapter 7
- Chapter 13
- Businesses and Individuals