Filling for Chapter 7 Bankruptcy Pros and Cons

What Are The Advantages of Filing Bankruptcy in Ft Lauderdale?

So what are you trading off in order to get Ft. Lauderdale debt relief through a Chapter 7 bankruptcy? In a nutshell, you are trading your non-protected assets for a complete discharge of your credit card and medical debt. As I ask clients all the time: If your creditors came to you today and told you they would forgive ALL of your debt for your second car, would you take that deal? I have never had anyone say no. If you do say “no,” then we can file a Plantation or Coral Springs Chapter 13 bankruptcy and you get to keep it! Below is a partial list of the pros and cons to filing a Plantation or Coral Springs Chapter 7 bankruptcy.

Will I lose Property and Assets in a Ft Lauderdale Chapter 7 Bankruptcy?

The Pro: Florida law gives you exemptions that you can protect certain assets with. When a Chapter 7 bankruptcy is filed in Broward County, we place a value on all of your personal property and we exempt (protect) what we can under the law.

The Con: The Chapter 7 trustee appointed to your case will take possession of your personal property or assets that are not exempt for the benefit of the creditors. The assets will then be auctioned and the proceeds distributed among your creditors pro-rata.

Your Credit Score Will Drop by 100-150 Points Average

The Pro: When you file your Plantation and Fort Lauderdale Chapter 7 bankruptcy with us, we enroll you in a credit rebuilder program that will show you how to best rebuild your credit in the shortest amount of time. FHA will finance a new mortgage for you two years after your debts are discharged at their low rates.

The Con: You thought your credit score was bad? It will get worse. Your credit report will also show that you filed a Plantation Chapter 7 bankruptcy for 10 years. This will affect you when you apply for a loan or mortgage in the future. When you initially start getting credit, the interest rate will be higher on personal credit.

Some Debt Obligations Will Not Go Away

The Con: A bankruptcy discharge will not eliminate the following debts: most domestic obligations such as child support and alimony; student loans (yes, it says that you “might” be able to but in this district – it’s not happening…sorry).

Immediate Debt Relief From Debt Collection Activities

A Big Pro: This is the biggest “pro” for those that are under wage garnishment or scared of the repo-man grabbing their car. Upon filing a Plantation or Hollywood Chapter 7 bankruptcy, an automatic stay goes into effect immediately that stops all creditor collection attempts immediately. This includes all credit collector harassment activities such as harassing phone calls, wage garnishment, repossession of your car, mortgage foreclosure and lawsuits just to name a few.

Chapter 7 Bankruptcy in Pembroke Pines Lasts Only 4 to 6 Months

The Pro: A Miramar or Pembroke Pines Chapter 7 bankruptcy will take approximately four to six months from start to finish. Once you receive your bankruptcy discharge, then all your debts are eliminated and you can start rebuilding your life and your credit.

Florida State Exemptions Protect Some of Your Property and Assets

The Pro: A common misconception is that in a Tamarac Chapter 7 bankruptcy, you will lose all your assets. The truth is that the vast majority of people in Ft. Lauderdale and Plantation will not lose any property whatsoever because of the Florida exemptions that protect it. The Trustee can only liquidate the assets that you cannot protect on the day your file. If you want debt relief but don’t want to lose any of your assets, you can file a Chapter 13 bankruptcy and you will not lose anything. The creditors, however, are still entitled to the value of the asset and you will have to pay that to them over the life of your Chapter 13 payment plan. This Chapter 13 option makes keeping everything that you own an affordable option while still getting debt relief. Our experience bankruptcy lawyer in Ft. Lauderdale can explain how it works! We like to call Chapter 13: “A Chapter 7 with a plan!”

The Con: You may have to turn over to the Chapter 7 Trustee assets that you cannot find exemption protection for in a Chapter 7 bankruptcy. The Chapter 7 Trustee may give you an opportunity to buy the asset back from them but they usually want a lump sum payment for the asset. Most people filing Chapter 7 don’t have the money to buy the asset back so they end up losing it or filing a Chapter 13 bankruptcy and keeping it.

The Bankruptcy Law Firm of Orfelia Mayor is a debt relief agency in Broward County that loves what they do! We help people file for bankruptcy under the bankruptcy code. Make our day by letting us help you stop wage garnishment, stop foreclosure sales, stop car repos and just get you back into loving life! Your creditors have lawyers on their side – shouldn’t you have a lawyer too?

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We can tell you more about it during your free bankruptcy consultation but to sum it up briefly, it works like this: Once you sign a retainer agreement, you only pay the costs of filing your case (approximately $500) and all of your attorney fees are paid after we file your case. This option does not get a discount on attorney fees but it does allow you to file an emergency bankruptcy petition so we can stop whatever debt collector that is threatening to take your property or garnish your paycheck. Of course, you can also take advantage of our zero-down-bankruptcy option if you do not have a bankruptcy emergency. It’s up to you. I do promise that we have a payment option that fits your budget and your situation. Make an appointment at our Cooper City bankruptcy office today! No matter where you live in Broward County, we are a bankruptcy attorney near you!