Bankruptcy Attorneys Coral Springs
Many people often hesitate on filing for bankruptcy because of the negative connotations associated with the word. Many people think that they should feel ashamed or embarrassed if they have to file for bankruptcy. The fact of the matter is that they should not feel this way at all. Bankruptcy is a given right for all citizens of the U.S. where they can get help in getting back on their feet financially. It is a process that is meant to help you become debt-free.
If you are contemplating filing for bankruptcy, it is crucial to consult a Florida bankruptcy attorney to make sure you know what the best option for you is based on your specific situation and circumstances. At Loan Lawyers, our Coral Springs bankruptcy lawyers are fully committed to helping our clients obtain the best possible outcome after filing for bankruptcy.
Common Types of Bankruptcy in Coral Springs
Various factors can affect your case, from state laws to limitations on the amount of debt one can have. This is why it is ideal to consult with a Coral Springs bankruptcy lawyer to help guide you through the process.
The type of bankruptcy you choose will drastically impact your bankruptcy process, including the debt you can discharge and the amount of time it will take. The most common types of bankruptcy in Coral Springs are as follows:
- Chapter 7 Bankruptcy: Chapter 7 is one of the most common types of bankruptcy throughout Florida and is also one of the quickest. A Chapter 7 bankruptcy case usually takes anywhere between four and six months. To qualify for Chapter 7 bankruptcy, you must pass a means test, which shows that you do not have enough income to repay your existing debt levels. If you are successful with your case, your creditors could discharge most or all of your debt, but they could some of your assets to repay your creditors and debt collectors. It is essential to keep in mind that state laws can affect your eligibility for this type of claim. Therefore, we recommend consulting with our Coral Springs bankruptcy attorneys. They will keep your best interests in mind.
- Chapter 13 Bankruptcy: Chapter 13 bankruptcy claims for people who don’t qualify for Chapter 7 due to higher incomes. Borrowers are not in fear of losing any of their property through a Chapter 13 bankruptcy. With this bankruptcy type, some of your debt may get discharged, but most of it will be restructured into a repayment plan. The plan extends between three and five years and gives you a new 60-month loan for all your debt. You do not have to pass a means test when filing for Chapter 13 bankruptcy, which is one reason people choose it when they do not qualify for Chapter 7.
- Chapter 11 Bankruptcy: Chapter 11 bankruptcy is typically reserved for people with much higher levels of debt than what is dealt with during a Chapter 7 or Chapter 13 bankruptcy. Chapter 11 is also appropriate for business owners. Chapter 11 Bankruptcies take a long time, and they involve complicated factors. On the other hand, they can also allow business owners to continue operating their companies, and they can also enable individuals to retain their assets and minimize financial loss.
Determining which type of bankruptcy is right for you is not always easy. A Coral Springs bankruptcy lawyer can advise you of all your options and help you determine which type to file.
We have a team of experienced Coral Springs bankruptcy attorneys fully committed to ensuring our clients retain their assets and help restructure loan payments.
How Bankruptcy Affects Your Credit
Filing bankruptcy will affect your credit because it shows that at one point, you had high levels of debt that you could not repay. The length of time bankruptcy will remain on your credit report depends on many different factors, but your report may show a bankruptcy for up to ten years. This does not mean, however, that you cannot obtain new credit or apply for a loan within that time.
Many financial lenders and car loan providers do not impose a mandatory waiting period for borrowers wishing to obtain a loan after filing for bankruptcy. Some government-sponsored mortgage programs such as Fannie Mae, Veteran Affairs, and the FHA do require you to wait at least two years after your bankruptcy case is finalized to apply for a mortgage.
Even though purchasing a home might be difficult, you can still obtain other types of credit and loans to rebuild your credit. In fact, many creditors market to people who have just been through the bankruptcy process because they know these individuals likely do not currently have any credit and are looking to rebuild their credit score. Although obtaining a credit card can be beneficial in the long run, it is important to make sure you are only taking on debt you can afford. For example, you may not want to apply for a credit card that has a high interest rate just to rebuild your credit because the debt may cost you too much in the long run.
How Bankruptcy Affects Your Home
Many people use bankruptcy to stop foreclosure on their homes. During a Chapter 7 bankruptcy, the bank can discharge your mortgage loan either wholly or partly. Losing your home in the process will depend on the amount of equity you have within it. Florida has a very generous homestead exemption in bankruptcy cases. Under this exemption, you can protect 100 percent of the equity you have accumulated in your home.
Bankruptcy exemptions refer to property the bank cannot sell as part of the bankruptcy process. During the Chapter 7 bankruptcy process, the lender can sell anything the exemption does not protect.
Filing bankruptcy, regardless of the type you file, can also protect your home from foreclosure. Once you file bankruptcy, the bankruptcy courts issue an automatic stay. The automatic stay prohibits creditors and other lenders from attempting to collect any of the debt you owe. This includes the lender that approved your mortgage loan. Even if you file bankruptcy papers just before a foreclosure sale, the automatic stay will still prevent the sale from moving forward. This will allow you to keep your home until the court finalizes your bankruptcy case, and perhaps even longer.
Call Our Bankruptcy Lawyer in Coral Springs Now
If you have debt that you can no longer manage, our Fort Lauderdale bankruptcy lawyer can help. At Loan Lawyers, our skilled attorneys can advise on the facts of your case, help you determine which type of bankruptcy is right for you, and answer any question you have. We know how to help our clients successfully file bankruptcy, and we want to help you, too. Call us now at (954) 523-4357 or reach out to us online to schedule a free review of your case and to learn more about your legal options.
