Debt is not always a bad thing. It allows you to make purchases that you otherwise could not afford to pay all at once, such as a vehicle or your family home. Sometimes, though, debt can become unmanageable. In these cases, it can lead to non-stop calls from creditors and debt collection companies, a plummeting credit score, and more. Bankruptcy is an option that can provide you with a clean financial slate when your debt burden becomes too much for you to bear. Before you file, speak to a Sunrise bankruptcy lawyer near you who can advise you of the options available to you. 
What Type of Bankruptcy Should You File?
It is widely understood that there are different types of bankruptcy options, but many people still think the only difference is personal bankruptcy and commercial bankruptcy. Truthfully, even if you are filing bankruptcy to have the personal debt discharged or restructured, you still have many different options. The most common of these include:
- Chapter 7 bankruptcy: Perhaps the most common type of bankruptcy, a Chapter 7 bankruptcy allows you to discharge most or all of your debt. You will have to pass a means test showing that you do not have enough income to repay your debt. You will also work with a bankruptcy trustee, who will meet with your creditors and sell any non-exempt property. The proceeds from the sale of property are then used to repay your creditors as much of the debt as possible. Many people fear that they will lose everything during bankruptcy, but that is rarely true. In fact, it is not uncommon for people to get into debt and not lose any of their property.
- Chapter 13 bankruptcy: A Chapter 13 bankruptcy is vastly different from a Chapter 7 bankruptcy. You will not lose any property during a bankruptcy, but your debt is also not discharged. Instead, the debt you owe is restructured into a repayment plan that extends between three and five years. Many people choose to file Chapter 13 bankruptcy because they do not pass the means test in Chapter 7. Others file this type of bankruptcy because they do not want to lose any property.
- Chapter 11 bankruptcy: Many people think of Chapter 11 bankruptcy as the right type for business owners. While this is often true, individuals can also use Chapter 11 to file personal bankruptcy. This is appropriate when people have a significant amount of debt that is not appropriate for Chapter 7 or Chapter 11. A Chapter 11 bankruptcy can also minimize losses for individuals, while at the same time, allowing them to keep their assets. When a business owner files Chapter 11, it can also allow them to continue with business operations during the bankruptcy process.
Knowing which type of bankruptcy to file is not always easy. A Sunrise bankruptcy lawyer can fully explain your options and help you determine which type is right for you.
The Impact of Bankruptcy on Your Credit Score
People are reluctant to file bankruptcy in Sunrise FL for many reasons, with one of them being the fact that it does negatively affect your credit score. It is true that bankruptcy will lower your credit score fairly dramatically. It could also take some time to rebuild your credit, as bankruptcy can stay on your credit report for up to ten years.
Just because bankruptcy will stay on your credit report for so long does not mean that you cannot start rebuilding your credit score soon after your case is finalized. Many companies market to people who have recently filed for bankruptcy because they know these consumers are looking to rebuild their credit. As long as you ensure the interest rates on these loans and credit cards are not too high, these are great options to start increasing your score, even when the bankruptcy still shows up on your report.
It is also important to remember that while filing bankruptcy will negatively affect your credit score, it has probably already taken a hit if you are struggling with debt. If you do not file bankruptcy, you run the risk of continuing to struggle to pay it off, which could bring your score even lower. By discharging your debt, or restructuring it into a more manageable plan, you can prevent it from continuing to affect your credit score.
Filing Bankruptcy Can Stop Foreclosure 
Of the many ways to stop a foreclosure, filing for bankruptcy is one of the most common. As soon as you file either Chapter 7 or Chapter 13, the Florida bankruptcy court will issue an automatic stay. This is a court order that prohibits creditors and debt collectors from trying to collect on the debt you owe. Once the automatic stay is issued, your mortgage lender has to stop all foreclosure action, even if the order is issued just before a foreclosure sale. We encourage you to speak with our top-rated Sunrise foreclosure lawyers to learn more about the process in the state of Florida.
People often worry that they will lose their homes if they file bankruptcy, particularly if they choose Chapter 7. Fortunately, this is not always the case. Florida has one of the most generous homestead exemptions in the country, and it allows you to protect 100 percent of the equity in your home. So, if you have enough equity, you may be able to protect the property. In fact, many people who file Chapter 7 bankruptcy do not end up losing any of their assets at all. If you file Chapter 13, you are guaranteed not to lose any property because your debt is not discharged but reorganized into a repayment plan.
What Our Clients Have To Say About Our Bankruptcy Attorneys Near You
Read this 5-star Google review below regarding a bankruptcy case
“If you are in financial distress and looking for an office that will help you towards the journey of bankruptcy filling please look no further. I knew nothing about bankruptcy and they were so patient with me. They explained everything to me and led me through each and every step. The trustee attempted to take my car as asset but they worked their magic and the trustee decided to take no further interest in my car which I’m beyond grateful for. The professionalism and ongoing communication and the ability to go above and beyond is why I recommend Loan Lawyers.”
By: Bee
Rating: 5/5 ⭐⭐⭐⭐⭐
June 3, 2022
Read more reviews on Google!
How To Choose the Right Bankruptcy Lawyer For You
Filing for bankruptcy is an important big decision you need to consider carefully, and choosing the right nearby bankruptcy lawyer in Sunrise FL to help with your bankruptcy case is just as important. See the video below to get helpful tips on how to choose a bankruptcy lawyer including:
- Look at testimonials online and investigate the reputation of the firm
- Find out if you will be meeting with the attorney or the attorney’s secretary or assistant
- Find out all the areas of debt relief they offer to their clients (make sure they don’t ONLY offer bankruptcy)
- Ask the attorney how many cases they have successfully litigated
Get a Free Consultation with Our Top Bankruptcy Lawyers in Sunrise FL
The time leading up to bankruptcy is incredibly stressful, and the process also presents its own obstacles. If you are thinking of filing, do not do it on your own. At Loan Lawyers, our foreclosure and bankruptcy lawyers near you have helped thousands of people successfully discharge or restructure their debt, and we can help you, too. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation with one of our seasoned attorneys.
