Our Bankruptcy Blog

How and Why to File for Bankruptcy in Florida

Bankruptcy is a legal process that can provide relief to people who are struggling with debt.

In Florida, there are several steps you’ll need to take in order to file for bankruptcy, and there are a variety of reasons why you might choose to do so.

Let’s explore the different steps involved in the process and some of the most common reasons why people file for bankruptcy in our state.

The biggest misconception about filing for bankruptcy is that it will stay on your credit report forever and ruin your chances of ever getting a loan or buying something in the future.

While this can sometimes be true, you need to know that not all bankruptcy filings appear on a person’s credit report.

In fact, Chapter 7 bankruptcy filings don’t show up at all after ten years from the date they are filed, and other types of filings typically only affect your credit score for a short amount of time.

The biggest question most people have about filing for bankruptcy, though, is what exactly this process can do for them.

Filing for bankruptcy in Florida could potentially allow you to reduce the amount of debt owed on credit cards, stop foreclosure proceedings on your house or car, eliminate medical debts, and even cancel some types of student loans.

Keep reading to explore all of these options in more detail so we can provide you with some helpful information on how you might be able to use bankruptcy as a mechanism for getting financial relief moving forward.

Reduce or Eliminate Credit Card Debt

A common reason why people choose to file for bankruptcy is because they have so much credit card debt that paying it off is simply not a realistic option.

By filing for Chapter 7 bankruptcy, you can eliminate most of your debts and free up some money to use for everyday living expenses.

Filing for Bankruptcy in Florida Avoid Foreclosures

Another common reason why people file for bankruptcy in Florida has to do with foreclosure proceedings on their house or car.

In order to help protect these important assets, the law allows you to stop foreclosure proceedings if you meet certain requirements, such as proving that there are no other options available and that losing your house or vehicle would create an undue hardship on yourself or your family members.

Eliminate Medical Bills

If you have recently had a medical emergency and collected thousands of dollars in medical bills, filing for Chapter 7 bankruptcy might be able to help.

Bankruptcy is able to eliminate most kinds of debt that are accrued during an emergency situation, including unpaid medical bills.

What About Student Loans?

If you have student loans, it’s important to know that they cannot be eliminated in a bankruptcy proceeding if they were taken out by your spouse or child if you are the parent or legal guardian.

However, there are ways to reduce the amount of money owed on these types of loans so you can get some relief moving forward after filing for bankruptcy in Florida.

General Guidelines

It’s important to remember that everyone’s situation is different. No two cases are exactly alike, so it’s important to meet with a bankruptcy attorney so you can better understand the types of relief that might be available for your specific situation.

The steps involved in filing for bankruptcy will vary depending on which type of filing you choose (Chapter 7 or Chapter 13), but there are some general guidelines each petition must abide by.

Some of these include listing out your monthly income and expenses, making sure you still make payments on any secured debts like mortgages or car loans (unless this would create an undue hardship), and providing details about any non-exempt assets you might have.

Filing for bankruptcy can be a daunting task, but it’s important to remember that there are options available to help you get financial relief.

In this article, we’ve explored some of the different reasons why people might file for bankruptcy and what they can expect from the process.

If you’re thinking about filing for bankruptcy in Florida, it’s important to meet with an attorney so you can better understand your specific situation and the types of relief that might be available to you.

Call us today for a free consultation and we’ll get you on your path toward financial freedom.

Where Can I Find Help?

Dealing with bankruptcy doesn’t have to be a single-person job. The bankruptcy lawyers at Parker & DuFresne will help you determine the best course of action to help you get out from under your debt and move forward to a debt-free future.

Call today at 904-733-7766 for a free consultation, or click the button at the top of the page to schedule online.

 

Florida Bankruptcy Lawyers

Parker and DuFresne

Parker and DuFresne
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