Bad things happen to good people, right? Losing a job, health issues or any number of things can pop up and lead to unmanageable debt. That is where Fort Myers Bankruptcy attorney, Miller, Hollander & Jeda come in. They concentrate on bankruptcy law, asset protection and financial problems.
Bankruptcy. What does it mean? If you are playing Monopoly, it means you’ve lost. The bad news is you are eliminated from the game. The good news is that you finally get to go sit somewhere else that is more comfortable.
In the real world, you’d like to steer clear of the “B” word. At least that’s the perception that goes along with bankruptcy. But in reality, it can be a good thing for you to do.
The Bad Stuff
Obviously, things have not gone great financially if you’re considering bankruptcy as an option. And there will be some bumps in the road to getting back on track because there are negative aspects to bankruptcy. It will impact your credit score. It can make it more difficult to find a good job. And it will show up on a background check done by law enforcement departments, landlords, employers or government agencies.
All those things are true. Yes, declaring bankruptcy can hurt your credit score for a while. Yes, bankruptcy declaration is a matter of public record so there’s a good chance that your employers, landlords and creditors will find out about it. Those things aren’t great, but maybe not as bad as it sounds.
The Good Stuff
Fort Myers bankruptcy attorney firm, Miller, Hollander & Jeda can help show you why bankruptcy is good for reducing/eliminating some forms of unsecured debt. Chapter 13 bankruptcy isn’t going to get rid of your mortgage or auto-loan payments, but it might help with reducing your credit card bills and personal loans on your docket. This can free up substantial reserves of income and ensure that you remain current on your secured obligations. In fact, reorganization can increase the likelihood that you’ll remain in your home during a period of financial turmoil.
A Chapter 7 “liquidation” can reduce unsecured debts more quickly. This process goes through a bankruptcy judge who has to approve every part of the process. If the judge approves, you could be able to discharge outstanding debts without having to repay your creditors. It can also be much quicker than other ways to relieve your debt. Plus, you may be able to keep your home by reaffirming your mortgage while continuing to make your payments.
You Can Rebuild
Nobody wants to lose their home, but it may be better than the alternative, depending on your situation. Sometimes the benefits of a clean slate will be better than the hardships that come with losing a home. Take the right steps. Get back on track financially, and you’ll be able to replace the home you lost. The same goes for your credit score. In just a few years, you can be back to earning prime interest rates and qualifying for high-limit credit cards. Just be sure to pay off your remaining obligations diligently and don’t take on to many additional debts.
This is also a good time to organize your household budget. You will need to create a repayment plan for all your finances that will be presented to the bankruptcy judge and to your creditors. This should include evidence that your budget will all for the repayments to be made as they should. Show that you are making progress and you could buy yourself some time to get things in order.
What Not To Do
Fort Myers bankruptcy attorney firm, Miller, Hollander & Jeda have advice for those considering a bankruptcy. If you think that you may want to go down the bankruptcy road, there are some things you’ll want to avoid doing. Here are some suggestions: Don’t
- Pay Creditors: You should still make your payments if you can, but paying big chunks on one debt can cause you grief down the road. If this happens and you have multiple debts, then one creditor has been treated better than the others. That means they could be sued later on down the road and have that money taken back.
- Increase Your Debt: You are already in a financial hole. Don’t go making it worse. The consequences can be serious. You could be charged with fraud and accused of taking a loan without ever intending to pay it back. This debt would not be included in your bankruptcy case.
- Make Unusual Transactions: Don’t transfer money or assets to other people, transfer or remove your name from a business, transfer the title of a vehicle, home, boat, etc. Don’t buy luxury items or make large purchases that aren’t necessary. These actions can also fall under fraud and have harsh penalties.
- Keep It A Secret: If bankruptcy is your plan, let the creditors know about it. Let them know the situation before they try to garnish wages or seize your assets.
- Give Bad Information: You are required to provide completely accurate information during this process. All financial information needs to be included. Hiding, or attempting to hide something can, again, be considered fraud. And it could lead to criminal chargers.
- Use Retirement Funds: Depending on the situation, you may be able to keep your retirement funds. You might be better off keeping your retirement funds in place instead of using them to pay off your debts. Check with your attorney before you do anything.
- File If You Are About To Get A Lot Of Money: Don’t file for bankruptcy right before you get a bunch of money that could be used to pay off debt. If you can take care of your debt without filing for bankruptcy, you should probably do that.
About Miller, Hollander & Jeda
Bankruptcy can seem like the end, but Fort Myers bankruptcy attorney Miller, Hollander & Jeda will show you how it can help save your home, car and other assets. And they are dedicated to doing it well.
You can count on them to:
- Explain the complicated differences between Chapter 7 and Chapter 13 filings under the Bankruptcy Code
- Determine which type of bankruptcy will work best for your situation
- Act on filing your bankruptcy to put a stop to harassment by creditors, foreclosure on your home and repossession of your car
The law firm of Miller, Hollander & Jeda has been practicing bankruptcy law for almost four decades. Miller, Hollander & Jeda’s founding attorneys began practicing in the early 1970s before putting down roots in the area and joining forces in 1992 to create the Naples, Florida law firm that bears their names. Since its inception, Miller, Hollander & Jeda has focused on bankruptcy. They take pride in helping clients get a fresh start.
To sum it up, bankruptcy may not be as devastating as it seems. In fact, it may be your best option. Contact Fort Myers bankruptcy attorney firm Miller, Hollander & Jeda to find out if you should go bankrupt. They file more bankruptcies in Southwest Florida than any other firm. Handling each one with the highest level of professionalism and personal attention. Their firm has been helping clients file bankruptcy throughout Southwest Florida for more than 35 years. They have the knowledge and experience to help you get a fresh financial start for yourself, your family or your small business. Give them a call today!