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Is bankruptcy right for me?
It's amazing that more people don’t file bankruptcy even when they desperately need to. Bankruptcy is a legitimate solution to eliminate all of your debt in a legally recognized and widely
 accepted procedure.
We appreciate that it is a tough decision to call a bankruptcy attorney, but
we know from experience that you wouldn’t be reading this unless you really needed our services. The decision to file bankruptcy is more of a personal one than a legal one. It is important that you do what’s right for you and your family. Many of
our clients struggle for years trying to pay down credit card debt or medical bills in order to save face or do the right thing. Of course, during this time your creditors become increasingly aggressive, charging additional late fees, penalties and mounting interest while you and your family suffer in order to just make the minimum monthly payments. If you realistically are unable to pay off your debt in the next few years without starving or living on the streets while you do so, then bankruptcy is clearly an appropriate option. It is important that you accept your present circumstances and take action to correct them. Remember, that we can’t help you unless you help yourself by giving us an opportunity to review your finances and provide you with viable recommendations.
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How
will bankruptcy effect my credit?
People frequently ask how the
bankruptcy will effect their credit rating.
As a practical matter, most people contemplating
bankruptcy no longer have credit or have simply
maintained their credit rating in good standing
by using one credit card to pay off another.
This practice of robbing Peter to pay Paul is
nothing more than a delay tactic which is doomed
for failure. Although bankruptcy is
reflected on your credit report, it is still
possible to gain renewed confidence from
creditors and reestablish your credit.
You can typically obtain
credit if you demonstrate a consistent
employment record and signs of financial
rehabilitation. Most people find that if,
after filing bankruptcy, they promptly
make the payments they are left with such as car
payments, house payments, rent or utility
payments, they can reestablish their credit in
only two years.
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Why do I feel so guilty about filing bankruptcy?
Many people express their reluctance to file bankruptcy because they feel guilty or want to do the right thing. These feelings are normal, but should be put into context.
Credit card companies are currently reporting record profits. You are nothing more than a file number to the credit companies and an opportunity to make money. In most instances, you have most likely already paid back the principal amount of the debt which was borrowed. Although the credit card companies are no longer going to make more money on you, they certainly are not going to take a loss. In addition, credit card companies’ policies to charge you exorbitant interest, penalties and late fees once you miss a payment or two demonstrate their lack of compassion and fairness. Your struggles represent an opportunity for them to take advantage of your situation and gouge you for more money.
The most important thing to remember is that you have to do what is right for you and your family. If you cannot realistically pay back your debts within a couple of years,
then you have a choice to make. You can live the rest of your life in poverty while you and your family suffer with no end in sight
or, you can take control of your own financial destiny, take advantage of a legitimate solution to eliminate your debts and live a debt-free life after you file for bankruptcy. The choice should be easy.
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Do I need an attorney to file bankruptcy?
Since
Congress radically overhauled the Bankruptcy
Laws which became effective October 17, 2005,
the filing of a bankruptcy case has become much
more complex of a legal process. Many paralegal companies advertise bankruptcies at a discount. Paralegals are, by law,
prohibited from rendering any legal advice. Consequently, paralegals can only provide you
 with forms for you to fill out and are nothing more than glorified typing services. While they presumably provide valid documents, there is no substitute for professional advise and sound legal counsel. A bankruptcy is a complex legal process that will affect your financial status for many years to come. Only an experienced bankruptcy attorney can provide you with competent advice to help you navigate the many
intricacies of the bankruptcy process, eliminate the majority of the debt and let you keep as much property as possible. In addition, unlike licensed attorneys, paralegals cannot represent you in court. The few hundred dollars that you save by not hiring competent counsel is small compared to the amount of debt for which you will continue to be held responsible if the bankruptcy is not prepared
correctly.
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What
type of bankruptcy should I file?
There are basically two types of bankruptcy for individuals and families: Chap. 7 (straight bankruptcy) and Chapter 13 (debt consolidation). Each type of
bankruptcy has unique advantages. We can help you choose which chapter serves your needs the best.
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Does bankruptcy stop creditors from calling me or filing a lawsuit against
 me?
Once a bankruptcy is filed, creditors are immediately prohibited from pursuing any collection activities, including harassing telephone calls, wage garnishments, and filing or continuing lawsuits to collect their debts. In fact, if creditors continue to make collection efforts after you file bankruptcy, you may be able to sue them for violating your rights.
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 If I file bankruptcy, will I lose my house, car and personal household items?
In general, Florida law provides protections for your home, car and basic personal household items such as furniture, electronics, clothing, etc. Consequently, in most
instances, you are entitled to keep these possessions even after you file bankruptcy.
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 Can I file bankruptcy with my spouse?
There may be advantages or disadvantages to a joint filing with your husband or wife. In most cases, if both of you are jointly liable for the debt, then we will recommend you file together. Our firm does not charge any additional fee for filing jointly.
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If I file bankruptcy, will I lose my pension IRA or 401(k)?
No,
Federal and Florida law allows you to keep your
pension, IRA or 401(k).
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Will I ever be able to buy a house after filing for bankruptcy?
Yes.
We can even handle your closing and make the
process easy for you.
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Will I still owe taxes after filing bankruptcy?
Under certain circumstances, bankruptcy can eliminate certain federal and state tax obligations. It is possible to discharge some tax obligations depending on a number of factors including the type of taxes owed, the age of the tax obligation, and whether you filed your tax returns. Only an experienced bankruptcy attorney can evaluate whether your taxes can be eliminated by a bankruptcy.
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Who will know about my bankruptcy?
The only parties that receive notice of the bankruptcy are your creditors, the bankruptcy court,
Department of Revenue and the Internal Revenue Service. Your employer will not be notified of the bankruptcy unless your employer is also a creditor. The bankruptcy is public record so anyone who wants to find out could determine that you have filed if they specifically search for your name. Generally, however, only you, your creditors and the Internal Revenue Service will know about the bankruptcy.
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Will I be able to rent after I file?
If you are presently renting a home or apartment, usually your landlord will allow you to renew your lease without running an updated credit report and will not have any knowledge that you have ever filed bankruptcy. If you are seeking a new lease, there may be some slight difficulties that can be easily overcome.
We have found that landlords will rent to you if
you can demonstrate the ability to pay a
sufficient deposit and a stable work history.
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Does my spouse have to file with me?
If your spouse is not a co-debtor on your loans then he or she may not have to file with you. In this case, creditors cannot pursue the non-filing spouse for your debts that have been discharged in bankruptcy and the bankruptcy should not be reflected on your spouse’s credit report.
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Can I lose my job or face other types of discrimination for filing bankruptcy?
No. There are specific laws that forbid discrimination against people who have declared bankruptcy. For example, you may not be denied a job, denied or evicted from public housing, or denied a driver’s license just because you filed for bankruptcy.
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Are all debts discharged by my bankruptcy?
Certain debts cannot be discharged through a Chapter 7 bankruptcy. These include some taxes, alimony, child support, student loans and some marital property settlements. Other non-dischargeable debts may result from fraud, willful or malicious injury, certain fines or penalties, and claims incurred while driving under the influence of alcohol or drugs. Also note that although your debt may be discharged, anyone who has co-signed a loan with you will remain responsible even after your bankruptcy.
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If my debts are discharged in bankruptcy, will the co-signers also be protected?
If you file a Chapter 7 and have co-signors on any of the debts, the creditors can continue collection actions against the co-signor. The only way to prevent this would be for you or your co-signor to continue making the payments. In other
words, although you are no longer responsible for the debt, you may voluntarily decide to continue to make payments in order to protect the person who co-signed for you.
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