Tag: filing for bankruptcy

Bankruptcy Law, Consumer Bankruptcy

Should You Hire a Bankruptcy Attorney?

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Bankruptcy can be a stressful and complicated process, but it doesn’t have to be something you do on your own. While consumers can pursue a bankruptcy case on their own, or file bankruptcy pro se, without the assistance of an attorney, it is not always wise to do so. In fact, the benefits of hiring an attorney far outweigh the negatives in the long run.

According to the American Bankruptcy Institute, less than 50 percent of filers who pursued a Chapter 7 bankruptcy case without the assistance of an attorney had their debts discharged. Alternatively, 94 percent of filers represented by an attorney had their debts discharged.

Bankruptcy Trends, Consumer Bankruptcy, Consumer Debt

Five Reasons People Go Bankrupt

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The number of bankruptcy filings across the U.S. are on the rise. Common reasons that people file for bankruptcy include loss of income, medical bills, a mortgage payment that is too high, spending beyond their means, or lending money to loved ones.

Many times, it is not just one simple cause, but rather a combination of factors that contribute to why someone has filed for bankruptcy. Here are some common reasons people file bankruptcy.

Business Bankruptcy

6 Steps to Returning to the Business World After Bankruptcy

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After a bankruptcy case, the idea of returning to the business world can seem like a pipe dream or a near impossibility. While a bankruptcy case can certainly put a dent in an individual’s credit, it should not hinder that person from successfully starting a business or returning to an already-existing business.

The good news is succeeding in business after a bankruptcy can be and has been done. Many entrepreneurs have gone through personal bankruptcy and come back stronger and better. Several well-known companies, such as General Motors (GM) or Delta Airlines have filed for bankruptcy only to restructure their businesses and rebuild their brands successfully. The following tips can help an individual or business recover after filing bankruptcy.

Consumer Bankruptcy

Questions to Ask Yourself Before Filing for Bankruptcy

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The decision to file for bankruptcy is never an easy one. It takes careful consideration and depends on a number of factors. Before making the decision to file for bankruptcy, ask yourself these questions.

Have All Other Options Been Exhausted?

Bankruptcy is not the only option when it comes to debt relief.  It often helps to first meet with a bankruptcy attorney to discuss your options. A budget is one tool a consumer can use to see what unnecessary expenses can be eliminated, freeing up additional funds to pay off debts. The consumer may also have luck in selling some of his or her assets to pay off various debts. Another option is for the consumer to reach out to his or her lenders to see if some type of payment plan or debt settlement can be reached on the debt.

The consumer may also consider credit counseling. This step should be taken even if the consumer is considering filing for bankruptcy since credit counseling, including a two-hour financial management course from a government-approved agency, must be completed at least 180 days before a bankruptcy discharge is issued.

Bankruptcy Law, Consumer Bankruptcy

Do I need a lawyer to file bankruptcy in Florida?

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Filing for bankruptcy can be an uncertain and intimidating process. Going through it alone can make the process that much more daunting. While an attorney is not a requirement for filing for bankruptcy, it certainly helps ensure that a bankruptcy case proceeds smoothly.

A bankruptcy attorney will meet with the client first during a consultation to discuss the person’s financial situation to determine whether he or she needs to file for bankruptcy. Occasionally, it can be in the client’s best interest to wait before filing, but he or she may not realize that until talking through the situation with an attorney.

Bankruptcy Law

The Fear of Bankruptcy is What Keeps Many Consumers from Filing

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The fear of the unknown is a powerful force. Unfortunately, the fear of filing for bankruptcy and the unknown keeps many from proceeding with a bankruptcy case, even when it is the best option.

It is for this reason that only a small portion of American consumers file for bankruptcy annually, even though many of them could benefit from either a Chapter 7 or Chapter 13 bankruptcy filing. While many different reasons exist for this failure to file, a misunderstanding of the process and fear of taking that first step keeps them from moving forward.    

Bankruptcy Law

Applying for a Mortgage After Bankruptcy

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One of the biggest worries that filers have when proceeding with a bankruptcy case is how the matter will affect their ability to obtain financing in the future, including a mortgage for a new home. While a bankruptcy case does impact a person’s credit score, all hope is not lost for eventually being able to purchase a home and obtain a mortgage. It depends a great deal on the success of the bankruptcy case and the consumer’s financial habits after the case is closed.

A Chapter 7 liquidation bankruptcy case is a much faster bankruptcy route that takes several months to finalize, while a Chapter 13 reorganization bankruptcy case can take between three to five years to finalize. A Chapter 7 bankruptcy case can stay on a person’s credit report for up to ten years from the date of filing, while a Chapter 13 bankruptcy case can stay on a person’s credit report for seven years from the date of filing or ten years if the bankruptcy is not completed or discharged.

Bankruptcy Law

The Benefits of Filing Chapter 7 Bankruptcy

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A bankruptcy case can mean different things to different clients. For many of our clients, it means a chance at a fresh financial start. It also means freedom from crippling debt and an unending barrage of collection calls. It is for this reason that many individuals choose to file for Chapter 7 bankruptcy due to the many benefits this type of bankruptcy offers.

The benefits of filing for bankruptcy can include relief from debt collectors through the automatic stay issued at the start of the case, as well as relief of most of the filer’s debts, including medical bills, credit cards, personal loans, and other unsecured debts. By discharging these debts before they become legal judgments against the filer, he or she can avoid wage garnishment and repossession.

Bankruptcy Law

Timing is Important When It Comes to Filing for Bankruptcy

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When it comes to filing for bankruptcy, it is not always a matter of “if” but rather a matter of “when.” Depending on a person’s financial situation, it can pay to properly time out a bankruptcy filing. Whether it is the right time to file for bankruptcy can depend on several factors including whether someone is facing foreclosure, vehicle repossession, wage garnishment, or any of the following.

Mortgage Modification

When someone is facing foreclosure, a few different steps can be taken to delay or even prevent the process. One of these solutions is through a mortgage modification. Homeowners facing foreclosure should try this approach first before filing for bankruptcy.

Bankruptcy Law

Mistakes to Avoid if You are a Senior Filing for Bankruptcy in Florida

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More seniors are filing for bankruptcy than ever before, which has been the result of a number of factors including rising healthcare costs, lack of retirement savings and less social security.  Between the years 2013 and 2016, approximately one in every eight bankruptcy cases were filed by individuals who were older than 65. Twenty-one percent of those filing for bankruptcy were between the ages of 55 and 64.

The following mistakes were made by individuals in this age group as they attempted to explore options to avoid filing for bankruptcy.