Choose a Bankruptcy Lawyer in Winter Garden: Important Things to Know About Bankruptcy
A lot of people find themselves in financial trouble where it seems like there is no light at the end of the tunnel. The bills keep coming and the debt continues to grow. It can feel as though you don’t have a way out of the problem, and it’s only going to make your life more and more miserable. However, there is a legal procedure you can choose that can help with your debt, even though you might be worried about whether it’s the right choice.
Bankruptcy, for many people, is the best way to deal with the mounting financial problems they are facing. It may not always be the right choice for everyone, but you can speak with a bankruptcy lawyer in Winter Garden to get a better idea of whether it could be a good choice for you or not. It is essential that you start by learning more about bankruptcy.
Your Credit Isn’t Ruined Forever
One of the biggest worries people have when they are considering filing for bankruptcy is what is going to happen to their credit. The truth of the matter is that it will take a massive hit when you file. There is no way around this. Your credit will suffer, and the bankruptcy will be on your credit report for up to 10 years.
As dismal as this might sound, it’s not all bad news. Once you file for bankruptcy, those other debts are wiped. You no longer owe them, so you are out from under the financial burden you had before. This can make it easier for you to do things that are good for your credit going forward.
You can start building it up again, you may find that you are getting credit card offers within a couple of months and loan offers within a year. The interest rates may still be high for a while, but they will eventually go down as long as you take care of your finances moving forward.
The Difference Between Chapter 7 and Chapter 13
Chapter 7 tends to be simpler to file and will take less time to complete. This type of bankruptcy can often be completed in a matter of four to six months. Of course, it can vary from case to case. Your bankruptcy lawyer in Winter Garden can give you a better idea of how long it will take.
Chapter 7 tends to be a good option for those who have a lower income. It will allow you to erase many of your debts, including personal loans, credit card debts, and medical bills, for example.
Chapter 13 tends to be for those who have a higher income and who can repay their debts through a repayment plan that could be three to five years long. You can keep all of your property with this option, but you will have to pay back most of your debts over time. This could be a good option for those who are behind on house payments, for example, and who want to keep the property and catch up on the payments.
Don’t Go on a Spending Spree
You might feel tempted to spend up to the limit on your credit cards right before you file for bankruptcy since you won’t have to pay any of that money back. However, this is a terrible idea for several reasons. If you start to pile up a lot of new debt right before filing—typically anywhere from 90 days before you file—it will send up red flags. The creditors can object to your request to file for bankruptcy because what you are doing will be seen as fraud.
Some Debts Aren’t Wiped
Although bankruptcy will remove quite a few different types of debt, it does not mean that all debts are going to be erased. Some are going to remain. This would include child support debt and taxes, as well as most student loans for example. Talk with your attorney about what can and can’t be wiped out and whether you are at risk of losing any of your property.
Talk to a Bankruptcy Lawyer in Winter Garden
Now that you know more about the ins and outs of bankruptcy, it’s time to get in touch with an attorney that can help you go through the process. The attorneys know you are worried and scared about going through bankruptcy. They have empathy and your best interests in mind.
When you work with an attorney, they can answer all of the other questions you may have about filing for bankruptcy. They can let you know which type will serve you better, what you can expect, and can walk you through the process from start to finish.
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