Making the decision to file for bankruptcy is never an easy one. Many times, it can be difficult to know when the time is right or when it is better to wait.
A bankruptcy case allows a consumer to receive a much-needed financial fresh start by discharging his or her outstanding consumer debts. The types of debts that are discharged in a bankruptcy case include credit card debt, mortgages, car loans, medical debt, and other unsecured loans.
If the consumer is facing collection actions for any unpaid debts, bankruptcy could be ideal in terms of stopping the lawsuit from proceeding. With the start of a bankruptcy case, the court issues an automatic stay, which is a court order requiring all collection activity to cease, including collection lawsuits. This stay allows the consumer to have a chance to breathe and regroup, including working with the bankruptcy trustee on handling the outstanding debt.
This automatic stay can also prevent any eviction or foreclosure proceedings from moving forward. While the bankruptcy does not necessarily mean the person can prevent the foreclosure from happening completely, it does pause the proceeding temporarily for the duration of the bankruptcy case.
The bankruptcy’s automatic stay will also stop any wage garnishment proceedings, as well, which will also give the consumer a brief reprieve.
For the most part, Florida’s bankruptcy exemptions will allow the consumer to keep a large portion of his or her property.
Another excellent cue in terms of when to file for bankruptcy has to do with the number of debts the consumer has and his or her ability to pay them in the near future. Many of the debts that plague bankruptcy filers, including credit cards and personal lines of credit are opened-ended with no end date in sight. If the consumer does not realistically see himself or herself paying this debt down in five years, it may be wise to consider proceeding with bankruptcy.
A qualified bankruptcy attorney can offer guidance and answer any questions the person may have about whether it is time to move forward and proceed with a bankruptcy filing. A bankruptcy attorney can also assist in determining which type of bankruptcy is best.
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If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
