Most people’s largest debt is their mortgages. If you are unable to pay your mortgage, it is important to learn how to file for bankruptcy. Filing for bankruptcy is an option if you are unable to pay your mortgage and any other unsecured debts.
Filing for bankruptcy can help you get rid of secured debts such as car loans and credit card balances. However, it will also allow you to continue living in your home or vehicle.
Filing for bankruptcy can be a great option to eliminate your debt and improve your financial position if you are unable to make the mortgage payments.
If you are eligible, bankruptcy is where you can eliminate most or all of your debts. There are two types of bankruptcy: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy allows you to discharge most of your debts. In some cases, it is possible to keep assets such as a home or a vehicle that cannot be discharged to repay creditors.
Chapter 13 bankruptcy allows people to keep their homes and pay off the debt over time. Not all applicants are eligible for this type of bankruptcy. Although it might seem counterintuitive, filing for bankruptcy with poor credit can actually result in an increase in credit scores. This is because it shows how proactive the applicant was in addressing their debt without letting it spiral out of control.
Understanding the steps you need to follow in order to file for bankruptcy is important. If you have more than $15,000 of credit card debt and cannot afford your house or car payments, bankruptcy may be an option. Although getting rid of debt is challenging and time-consuming, you shouldn’t be afraid to file for bankruptcy.
If you decide to file for bankruptcy, there are steps you can take:
- Consult with an experienced bankruptcy lawyer. They can provide advice on the best type of bankruptcy based on their experience and knowledge. They can also assist with the application process, as you will need to answer several questions to determine if bankruptcy is possible.
- Be aware of all the costs associated with filing for bankruptcy. This includes attorney fees as well as any applicable fees imposed by the court. Despite claims that you don’t have to pay, bankruptcy filings are not free. Most likely, those making such claims are trying to profit from it.
- Determine whether your debts will be discharged after you file for bankruptcy. There are cases in which assets such as a car or house that have been paid over time can be retained. However, most people who file for bankruptcy aim to eliminate all of their debts.
- Educate yourself about the different types of bankruptcy available, including Chapter 7 or Chapter 13. You might be eligible for Chapter 13 even if you don’t qualify for Chapter 7. Filing for bankruptcy is an option if you have credit card debt exceeding $15,000 and are unable to make your monthly payments on your home or vehicle.
This post was written by Trey Wright, a lawyer for Chapter 7 bankruptcy in Florida! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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