Should I File Bankruptcy?

Posted on: April 6, 2017 at 1:15 pm

FL Legal Group can help you determine if it is the right time to file a personal bankruptcy. 

The word bankruptcy sounds daunting and the idea of it seems even more terrifying. However, in these times of financial hardship, bankruptcy courts are overwhelmed with bankruptcy filings in an effort to discharge debt or reorganize debt. If you have incurred personal debt, bankruptcy may be a viable option.  FL Legal Group, and its bankruptcy Attorneys in Tampa and Clearwater, can assist you through this difficult and intimidating process.

What is a bankruptcy and is it the right option for you to file? 

Bankruptcy is the legal process in which debt, either business or personal, can be discharged. Its purpose is to obtain a fresh start.  Many individuals facing financial hardships are unable to pay his or her creditors and are faced with potential wage garnishment or levy of assets. There are two personal bankruptcies that can be filed: 1) Chapter 7 “liquidation” and/or 2) Chapter 13 “reorganization”.

Chapter 7 bankruptcy liquidates your debt.  People have a misconception that they will lose all their assets in a chapter 7.  That is not the case.  Certain personal property or an amount of equity in property is exempt or protected from the liquidation process. If you meet the exemption levels, you could be in and out of bankruptcy in 4-6 months.

Chapter 13 is a reorganization of personal debt.  This allows a person to keep their personal property, however, due to the level of income, a payment plan will be created by a bankruptcy attorney, wherein the debtor will pay a percentage of their debt.  A Chapter 13 will also allow you to strip off unsecured liens on real property, cram down notes on vehicles to fair market value and pay off debt owed to the IRS.

Now that you know the main forms of personal bankruptcy, how do you know if you should file? The following questions were designed to help you decide if you are financially overextended and may not realize it:

  • Does more than 20% of your take-home pay go towards paying creditors?
  • Do you need a second job to earn enough to make needs meet?
  • Do you rely on credit cards for everyday expenses?
  • Do you only pay the minimum due each month?
  • Do you have late or missed payments?
  • Do you take out new credit cards or loans to pay off the old ones?
  • Are you unsure about how much you owe?

If you answered yes to two or more of the questions, call or contact FL Legal Group for your free bankruptcy consultation.

Bankruptcy is an option available to millions of Americans to eliminate unmanageable debts, or stop from losing your home in foreclosure. Potential clients can schedule an appointment with FL Legal Group and leave the consultation with a feeling of hope and ease after being educated on their legal rights and options. Should I file bankruptcy? If you believe the answer is yes or have further questions, contact FL Legal Group to protect yourself and your assets.

FL Legal Group fights for those in Tampa, New Tampa, Oldsmar, Lutz, Clearwater, Largo, Seminole and the State of Florida who need help getting back on their feet financially. Call FL Legal Group (800) 984-9951 today or contact us.

Author: Nicki Asmer
Bankruptcy ||