The advantages of filing bankruptcy

Attorney Caroly Pedersen

For families facing struggling with the overwhelming burden of debt, caught in an exhausting cycle of juggling bills, debts & mortgage payments the financial pressures can be devastating. And to make matters worse, many older Floridians, ages 55+ who have worked hard all their lives, lose their job, only to discover that their age makes it difficult or impossible to find a new one. But just when all hope seems lost – Bankruptcy may offer a very positive solution!

In addition to providing individuals with financial freedom…and the opportunity  to begin their financial lives again with a clean slate,  Chapter 7 Bankruptcy can also put families back on the path to building a solid financial  future. Finances that were once gobbled up by credit cards and other consumer debts can be used to pay household and living expenses without stress and as circumstances improve, money can be set aside as saving for educational expenses, emergencies, retirement and other necessities of life. Chapter 7 Bankruptcy has many advantages, but there are also many commonly held misconceptions as well.

The most common mistaken belief is that it is impossible to get credit or to buy a car or house for 7-10 years after filing for Bankruptcy. Nothing could be farther from the truth. Normal credit can be easily reestablished within several years, including automobile and home mortgage loans, since a person is virtually debt free. Once the bankruptcy process is complete, many consumers find that credit scores have improved, since late payments, write-office and delinquencies on the credit report have all been discharged through the Bankruptcy. Bad credit stays on an individual’s credit report for 7 years, and a bankruptcy for 10.

The truth is that for those who qualify, Bankruptcy may eliminate credit card, medical and other consumer debts and judgments, stop pending and threatened lawsuits, foreclosures, garnishments and harassing telephone calls and letters from debt collectors and provide a Fresh Financial Start

Factors in qualifying for Chapter 7 Bankruptcy include level of income and amount of assets. Qualifying homes, retirement accounts and other important exemptions are generally not counted towards assets in Florida, allowing many consumers to keep what they own and compete the entire Bankruptcy process in as little as 90 days. So when financial problems seem overwhelming – the good news is that the first step to solving debt problems may be the easiest one – finding out your options are taking control of your future.

 

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