How Bankruptcy Really Works

Bankruptcy provides fast and immediate protection and help to hardworking people during tough times. Bankruptcy is designed to give people overburdened with debt a "fresh start" rather than being crushed by overbearing debt and oppressive interest rates.

The Bankruptcy Law Change

In 2005, the bankruptcy laws changed and the current law went into effect.  As a result of the law change bankruptcy filings decreased because people mistakenly thought it was difficult or impossible to file under the new law.  This is not true, and the new bankruptcy law offers just as much relief, if not more relief, than the old one.  In fact, due to the current economy, bankruptcy filings are back up to pre 2005 levels.  The main difference between the two laws is that there are a few more forms to fill out and a few more legal tests, but that's our problem and that's why you should hire a professional for your case.  You just let us know your problems, and if there's a way to fix them under the new law we'll find out how.

Bankruptcy Is Powerful Federal Law

Bankruptcy is Federal Law, and it has the complete backing of the Federal Government behind it.  It has the power to STOP foreclosures, repossessions, law suits, garnishments, bill collectors, creditor phone calls, letters, etc..

Bankruptcy can help you get up-to-date on your bills, and allow you to make lower payments over more time to get current.

Bankruptcy helps you KEEP your property.  You keep all your property which you own that is exempt under available Federal or State law.  For most people, that means all of their property.  Our clients routinely keep their homes, cars, cash in bank accounts, retirement plans, household goods, and other personal property. 

Bankruptcy Helps you Stop Bad Credit

People think that once you file bankruptcy, you'll never get credit again and it hurts your credit.  Not paying your bills hurts your credit.  When it comes to bankruptcy the exact opposite is true. For most people, filing bankruptcy is the quickest way to reestablish their credit. 

Most people contemplating bankruptcy have credit that's already maxed out or dead.  The quickest way to recover from credit that's maxed out or dead is by filing bankruptcy.  This is because bankruptcy gets rid of your debt.  Getting rid of debt is the best way to re-establish your credit.  Once you get rid of your debt, you free up income and become a better credit risk.  Your debt to income ratio improves.  A recent survey of 1200 families show that after they filed bankruptcy the number of credit offers actually doubled.  After filing bankruptcy getting new credit is not usually a problem.

Types of Bankruptcy

For consumers debtors, the primary forms of bankruptcy relief is through either a chapter 7 (straight bankruptcy) or chapter 13 (consolidation of bills). During your debt evaluation our Sarasota bankruptcy attorneys will evaluate your financial situation and advise you whether bankruptcy is right for you, and if so what chapter you should file under.

Chapter 7 

Chapter 7 allows you to discharge (get rid of and not pay back) debt, bills, and other financial obligations, while allowing you to keep all your property subject to State or Federal exemptions. Often, under chapter 7 bankruptcy you pay back nothing and keep everything.

Chapter 7 bankruptcy is the quickest way to allow you to start again without the burden of bills.  It allows you to discharge debt quick and buy property almost immediately. 

Chapter 13

Chapter 13 bankruptcy is an alternative to straight bankruptcy.  If you're behind on certain bills that you cannot discharge under Chapter 7 or want to keep property secured by creditor, and you're overwelmed by your bills, bill consolidation is an excellent option.  It is not a loan, but rather a Federal Law that allows you to repay many of those debts on terms you can afford.  It requires creditors to take less money over a longer amount of time, and gets rid of many of those late fees and penalties.

We're Here to Help!

Above are just some of the ways that Bankruptcy works and how it can help you and your family.  Our Sarasota and Tampa bankruptcy attorneys offer a FREE initial consultation where we'll evaluate your individual situation.  We will give you a ton of information, educate you on your legal rights, and answer your difficult questions.  This service is completely FREE.  You have nothing to lose but everything to gain, so don't delay.  Call us today... (941) 955-7900!