Is it time to file bankruptcy?
The time that you decide to file bankruptcy is important and can affect whether assets are able to be saved. If you are unsure when that time is for you, it may be time to speak with a Bankruptcy Attorney. Many Daytona Beach debtors wait until all other alternatives have failed before they file bankruptcy. Bankruptcy can provide a family with a second chance and give a business new life.
Don’t feel conflicted about discharging your debts
If you are really behind on your payments, a creditor would rather recover some type of money from an ‘insolvent debtor’ who has filed bankruptcy. If a debtor does not file, the creditor may not recover any money at all. The creditor collects money because your non-exempt assets are divided fairly among the creditors. Under Florida law, your creditors cannot take your exempt assets.
If you are behind on your payments, it may be time to speak with an bankruptcy lawyer.
Bankruptcy stops the phone calls
Once you file bankruptcy, the debt collectors are not allowed to continue their collection activities. Bankruptcy stops the debt collection phone calls. Once your bankruptcy is discharged, the debt collectors cannot try to collect any debt that was discharged in the bankruptcy.
If you are getting phone calls for long overdue debts, it may be time to file bankruptcy in Daytona Beach.
Chapter 7 Bankruptcy
Many Daytona Beach residents simply have more debt than they can afford to repay. Despite what you hear, it is rarely due to irresponsibility. No one sets out to accumulate $7,000 in credit card debt, but a temporary job loss, sudden illness or other financial emergency can quickly drain savings and force people to charge normal living expenses.
When coupled with student loans, signature loans, payday loans and other unsecured loans, consumer debt in America tops $3 trillion. Since most people can expect negligible wage growth and have little savings, credit card debt can easily push a family over its own fiscal cliff.
Even if the debt was not your fault, the bills are still due and something must be done. If paying the bills is not an option, Chapter 7 Bankruptcy may be the answer.
In just a few short months, Chapter 7 Bankruptcy can wipe out most unsecured debts including credit cards and medical bills. All that time, your creditors may not take any action against you unless they get special permission from the Bankruptcy Court. After the bankruptcy is over, you still get to keep your house, retirement account, and other valuable exempt assets.
Our attorneys provide Chapter 7 bankruptcy services to the Daytona area.
Chapter 13 Bankruptcy
Filing a Chapter 13 provides you more flexibility in restructuring your debt and the following benefits:
Automatic stay
As soon as you file a bankruptcy case, the automatic stay is effective. It prohibits creditors from taking any collection actions against you while your bankruptcy is active. The stay halts all collection calls, lawsuits and garnishments.
Debt consolidation
Your Chapter 13 plan allows you to reorganize your debt and consolidate it into one monthly payment that you make to the trustee, who then disburses the funds to your creditors as set forth in the terms of your plan.
Elimination of debt
Your unsecured debt, such as credit cards and medical bills, is paid a percentage of what is owed under your repayment plan. The percentage depends on your income and debt, but most debtors pay pennies on the dollar owed, if anything at all.
Cure delinquencies
If you have fallen behind on your mortgage loan payments or your vehicle loan payments, you can include small payments in your Chapter 13 plan to be applied to curing your delinquencies. A Chapter 13 case lasts three to five years, which typically gives you plenty of time to cure your payment defaults and get your secured loan back on track.
Lien stripping of inferior mortgages
If you have a second or third mortgage on your home, you may be able to “strip” the lien and treat it as an unsecured debt. To qualify, the value of your home must be less than what is owed on the first mortgage.
Serving the Daytona Beach and New Smyrna areas with Bankruptcy Services
The decision to hire an attorney is an important one and should not be based on advertising alone. We believe our reputation and track record speak for themselves, but we welcome you to ask our other clients about their experience working with us.
