It’s easier to get into debt than it is to get out of it and, when it begins to impact your credit rating, it becomes especially problematic. A poor credit rating can affect your ability to get a job, qualify for an apartment, or do just about anything in today’s society. On top of those hardships, you likely have creditors harassing you about making payments.
Filing for bankruptcy may not be the ideal solution, but it can help you alleviate your situation. Typically the entire process takes just three to six months to complete, though it can take several years for you to rebuild your credit. That’s still better than the alternative and, for many people in similar situations, it is an opportunity to get a fresh start.
Before you consult a chapter 7 lawyer Orlando FL, it is important to take a look at your specific situation to ensure you can qualify. In Florida, there are certain restrictions, limiting who can file chapter 7, so it’s in your best interests to determine if you fall within those guidelines, before you proceed.
- You must earn less than the median household of a similar size in the state, or
- You earn more than the median household, but your fixed monthly debts (mortgages, alimony, healthcare, child care, etc.) leave you with $167 or less per month in disposable income, or
- The majority of your debt was acquired through bad investments or business ventures that have failed.
If you qualify, some of your assets may be liquidated to help pay your debts. In that case, a court appointed trustee will determine which assets are exempt, though you can discuss this ahead of time with your attorney. An experienced bankruptcy lawyer can guide you through the process and will be able to tell you which assets will be exempt and which assets you may lose.
While you might not like the idea of filing bankruptcy, it can be the only alternative in some situations. By making wise financial choices, many people are able to raise their credit score up to 700 in just two years, after filing a chapter 7 bankruptcy. While it may stick with you for many years, filing bankruptcy can help you get back on your financial feet.