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. Some of the benefits that come with bankruptcy include eliminating
debts, using repayment plans, receiving automatic stay plus many others.
As you consider the benefits and disadvantages of filing for bankruptcy,
consider the benefits of hiring the right firm to handle your case. With
decades of collective experience, LeavenLaw is proud to have helped hundreds
of clients through difficult and lifechanging circumstances.
Take a look at reasons to hire our firm:
- Decades of Legal Experience
- Free Initial Consultations
- Results-Oriented Legal Counsel
If you have questions about details of the benefits do not hesitate to call a
St. Petersburg bankruptcy attorney from our firm.
Overall Benefits of Bankruptcy
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:
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
Benefits of a Chapter 7 Bankruptcy
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 offers the following benefits:
- It is a shorter process than the other bankruptcies.
- Your future income is not considered in your bankruptcy estate.
The benefit of having your future income not considered in your estate
is that it helps individuals pass the
means test and receive this fresh start bankruptcy.
Benefits of a Chapter 13 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
There are numerous advantages to the debt consolidation approach of a Chapter
Filing can provide many benefits, including some of the following:
- Stop foreclosure proceedings: With a Chapter 13 bankruptcy, you have the
opportunity to stop the foreclosure of your home and then repay delinquent
payments and late fees with your repayment plan. As long as you remain
current with your Chapter 13 payments, you should be able to keep your home.
creditor harassment and all debt collection efforts against you: Once you file for bankruptcy,
all debt collection efforts against you must cease immediately. This means
you can finally experience relief from constant contact from creditors
and even pending debt collection lawsuits.
- Co-signers are protected under Chapter 13: If a family member or close
friend co-signed for you on any debt that is now delinquent, filing a
Chapter 7 bankruptcy may place them in danger of being held liable for
the debt. This is not the case with a Chapter 13 bankruptcy, which offers
co-signers protection from debt collection efforts during the extent of
your repayment plan.
- Discharge eligible debt: Once you finish your repayment plan, all remaining
unsecured debt will be discharged. Finally, you can get the fresh start you need.
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
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.
Benefits of a Chapter 11 Bankruptcy
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 one of the following:
- Lowering payments
- 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.
Considering Bankruptcy? Call a St. Petersburg Bankruptcy Attorney.
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!