2016 Bankruptcy FAQs

Tampa Florida Bankruptcy FAQs

If you’re kicking off the New Year with thoughts of filing for bankruptcy, you likely have quite a few questions. If you decide to file or even if you are not sure, but you think filing might be an option for you, it is important to speak to a bankruptcy expert. He or she can help you assess your specific circumstances and determine if bankruptcy is the way to go.

It can help to know a few things about bankruptcy and have a few general questions answered before you finally commit to contacting someone. What are some of the most common bankruptcy questions people ask when they begin to think about filing?

How Can Filing for Bankruptcy Help Me?

Filing for bankruptcy can allow you to eliminate the legal obligation you have to pay most or all of your debts. It can also stop foreclosure on your house, prevent repossession of a car, restore or prevent termination of utilities, and put a stop to wage garnishment, debt collection letters, and other creditor actions to collect a debt.

What Isn’t Bankruptcy Able to Do?

Bankruptcy cannot release you from every financial burden. For example, it may not discharge debts that fall into certain categories, such as child support, alimony, court fines and penalties, some taxes, student loans, and any loan you obtained through fraud. If you want to keep your home or car, you will still have to pay the secured debt.

How Bad Does My Situation Need to be before I Consider Bankruptcy?

Many experts recommend debt be $15,000 or more, but this does not apply to everyone. It really depends on the individual, because for some, debt might be much larger than $15,000, but the damage bankruptcy does to a credit report would cause worse repercussions. In other cases, filing is the best option even if debt is less than $15,000. Usually, timing is very important when deciding when to file bankruptcy. So waiting too long could be a big mistake. So better to see your bankruptcy lawyer earlier rather than later.

Will I Lose My Home or Car If I File Bankruptcy?

As a matter of fact, it will likely be the opposite, especially in the case of your home. Depending on the type of bankruptcy you choose, you will have the ability to restructure your payments so you can afford them. You can learn more about the different types of bankruptcy here. Bankruptcy helps many homeowners get back on track with their mortgages so they can avoid foreclosure.

Does Bankruptcy Affect My Credit?

Yes, and this is often the reason people avoid or postpone filing. The good news is bankruptcy will likely affect your credit much less than you expected. If your financial situation is bad enough that you are considering bankruptcy, chances are your credit is fairly damaged already. Filing for bankruptcy allows you to reset things and work toward improving your credit. By not filing, you could potentially face months or years of continued financial struggle and risk never getting your credit back on track. In fact, usually 2 years after filing bankruptcy you can get back to a 720 credit score.

Can I File for Bankruptcy If I’m Also Filing for Divorce?

Yes, but it is important you work with a bankruptcy attorney, in addition to your divorce attorney. Each has his or her own area of expertise and you want to be sure you receive comprehensive information based on your specific circumstances.

Do you still think bankruptcy might be an option for you in 2016? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a consultation. Discuss your situation and find out what can be done to make things better.

2016 Bankruptcy FAQs

If you’re kicking off the New Year with thoughts of filing for bankruptcy, you likely have quite a few questions. If you decide to file or even if you are not sure, but you think filing might be an option for you, it is important to speak to a bankruptcy expert. He or she can help you assess your specific circumstances and determine if bankruptcy is the way to go.

It can help to know a few things about bankruptcy and have a few general questions answered before you finally commit to contacting someone. What are some of the most common bankruptcy questions people ask when they begin to think about filing?

How Can Filing for Bankruptcy Help Me?

Filing for bankruptcy can allow you to eliminate the legal obligation you have to pay most or all of your debts. It can also stop foreclosure on your house, prevent repossession of a car, restore or prevent termination of utilities, and put a stop to wage garnishment, debt collection letters, and other creditor actions to collect a debt.

What Isn’t Bankruptcy Able to Do?

Bankruptcy cannot release you from every financial burden. For example, it may not discharge debts that fall into certain categories, such as child support, alimony, court fines and penalties, some taxes, student loans, and any loan you obtained through fraud.   If you want to keep your home or car, you will still have to pay the secured debt.    

How Bad Does My Situation Need to be before I Consider Bankruptcy?

Many experts recommend debt be $15,000 or more, but this does not apply to everyone. It really depends on the individual, because for some, debt might be much larger than $15,000, but the damage bankruptcy does to a credit report would cause worse repercussions. In other cases, filing is the best option even if debt is less than $15,000.   Usually, timing is very important when deciding when to file bankruptcy.  So waiting too long could be a big mistake.  So better to see your bankruptcy lawyer earlier rather than later.

Will I Lose My Home or Car If I File Bankruptcy?

As a matter of fact, it will likely be the opposite, especially in the case of your home. Depending on the type of bankruptcy you choose, you will have the ability to restructure your payments so you can afford them. You can learn more about the different types of bankruptcy <a href = “http://credit.about.com/od/debtmanagementsolutions/a/bankruptcytypes.htm”>here.</a> Bankruptcy helps many homeowners get back on track with their mortgages so they can avoid foreclosure.

Does Bankruptcy Affect My Credit?

Yes, and this is often the reason people avoid or postpone filing. The good news is bankruptcy will likely affect your credit much less than you expected. If your financial situation is bad enough that you are considering bankruptcy, chances are your credit is fairly damaged already. Filing for bankruptcy allows you to reset things and work toward improving your credit. By not filing, you could potentially face months or years of continued financial struggle and risk never getting your credit back on track.    In fact, usually 2 years after filing bankruptcy you can get back to a 720 credit score.

Can I File for Bankruptcy If I’m Also Filing for Divorce?

Yes, but it is important you work with a bankruptcy attorney, in addition to your divorce attorney. Each has his or her own area of expertise and you want to be sure you receive comprehensive information based on your specific circumstances.

Do you still think bankruptcy might be an option for you in 2016? We can help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule a consultation or to discuss your situation and find out what can be done to make things better.