Benefits of Bankruptcy in Florida

Speak with a St. Petersburg Bankruptcy Lawyer

When going through a financial hardship it is beneficial to take advantage of all possible debt relief opportunities. While bankruptcy does have downfalls, there are many benefits that cannot be found through other alternatives. If you have questions about details of the benefits do not hesitate to call a St. Petersburg bankruptcy attorney from our firm. Some of the benefits that come with bankruptcy include eliminating debts, using repayment plans, receiving automatic stay plus many others.

Benefits of Different Types of Bankruptcies

When filing for a Chapter 7 bankruptcy you are able to wipe out your debts without having to repay them. This type of bankruptcy is considered a fresh start for individuals who are not able to pay off debts. A chapter 7 bankruptcy is a shorter process than the other bankruptcies and your future income is not considered in your "bankruptcy estate." This helps individuals pass the means test and receive this fresh start bankruptcy.

The main benefit of a Chapter 13 bankruptcy is that individuals are put on a repayment plan. This bankruptcy provides a sense of relief for individuals who are struggling with repaying debts. If someone is able to pay some but not all of their debts this bankruptcy will allow them to spread out payments over a three to five year span. This makes repaying debts more manageable for individuals in a partial financial hardship. In a Chapter 13 bankruptcy, a person's assets are most likely safe. As long as they continue to pay through their repayment plan they can generally keep their house, car and all other assets. A person filing for this type of bankruptcy will usually be able to keep their business and receive loan modifications on their property or car. Many debts can still be discharged with this type of bankruptcy including homeowners insurance, penalties from taxing authorities, debts from a property settlement in a divorce and many others.

A Chapter 11 bankruptcy is for small business owners and this gives them the time they need to reorganize and make a new and approved plan for repayment. The business can stay in operation during the bankruptcy and this puts the person on automatic stay so creditors cannot harass them while they are reorganizing and restructuring their business. In a Chapter 11 bankruptcy a person can renegotiate terms of repayment by either lowering payments of making the period of repayment longer. This helps a business owner not have to give up on a dream or shut down their business because of a company hardship.

Overall Benefits of Bankruptcy in St. Petersburg

One of the important benefits of bankruptcy is automatic stay. This provision makes it so creditors cannot contact you during your bankruptcy. Once you file a petition they can no longer try to contact you and if they do there are penalties they can face. Other positive aspects of bankruptcy include:

  • Stopping the foreclosure of your home
  • Preventing wage garnishment
  • Ending creditor harassment
  • Removing credit card debts and tax arrears
  • Protecting retirement savings
  • Reducing car and mortgage payments
  • Eliminating second mortgages
  • Removing deficiency balances on car or mortgage loans
  • Giving you time to create a plan

Need a lawyer for your bankruptcy in St. Petersburg?

Bankruptcy can be a good option for many people. It is not always the answer but there are benefits that can come from filing for bankruptcy when it is the right choice. If you are considering filing for bankruptcy obtain a St. Petersburg bankruptcy lawyer from LeavenLaw as soon as possible. Our firm offers a free case evaluation so you can call us today to ask questions and speak with a skilled bankruptcy lawyer!