Bankruptcy is a concept that allows all your debts to be written off because you cannot repay them. It usually lasts for a year, after which you can start fresh. But bankruptcy only works when the value of what you own is less than your debt. When you declare bankruptcy, you will have to file a petition.
After it is filed, everything you won will be taken from you, and your creditors will stop pursuing you for the debt you owe them. There are some things that the court will want from you, including the total amount of your debt, the list of your creditors, information regarding your total income and expenses.
You can either represent yourself or hire a Florida Bankruptcy Attorney who will help you around the lengthy process of bankruptcy. This process takes a lot of time, and it is a serious step that is not right for everyone. It is important to understand the pros and cons of the process before you make a decision.
The pros and cons of declaring bankruptcy
When you cannot pay your debts, and they amount to more than your assets, then bankruptcy can allow you to start new. There are many pros and cons to this. The pros of bankruptcy include:
- · It gives a fresh start that will allow you to have a better future financially
- · Enables you to keep most of your assets and property
- · Creditors will no longer pursue you for debt collection
In addition to these pros, there can be cons to declaring bankruptcy that you should know about. The cons of bankruptcy include:
- · Bankruptcy will appear on your credit profile for a period of 7 to 10 years
- · You will not be allowed to declare bankruptcy again to cease your debts for a period of another 4 to 8 years
- · Your business can be sold off to make for your debts
- · You will have to receive court-authorized credit counseling
- · Declaring bankruptcy can result in higher interest rates once you get the financing
Every case is different and unique; this is why it requires careful consideration. Your lawyer can assess your financial situation and help you reduce, diminish or reorganize your debt.
What can a Bankruptcy lawyer help?
The term bankruptcy is taken in such a negative way that people forget the real reason behind it. Filing bankruptcy allows you to have relief from your debts and offers protection from creditors. And this is why bankruptcy Loan Lawyers will help you protect your assets from creditors and free you from your debts.
Studies show that hiring a lawyer, regardless of the type of bankruptcy you want to file, will give you better results than doing it yourself. Lawyers who represent a bankruptcy case will get their client’s debts eliminated in more than 96% of the cases.
In contrast, people who represent themselves in their bankruptcy cases will only have a 66% success rate. So if you have a lot of debts and your financial status is affected, then a bankruptcy lawyer can help get relief from debts and protect you from creditors.
Consult with a bankruptcy lawyer about whether declaring bankruptcy is right for you or not. With the filing of bankruptcy, you can get the financial relief you are hoping for. Experienced bankruptcy lawyers can help you with the petition and filing of the bankruptcy process. They will help you retain your properties and assets and help you in reorganizing financial debts.