What Bankruptcy Can And Cannot Do For You?

The decision to start the bankruptcy process should be made only after determining that this is the best solution to your financial problems. A bankruptcy attorney in Orlando, FL will discuss what bankruptcy is, your eligibility, benefits of filing bankruptcy, what you would do for you and ALL the options you may have, even if it is not a bankruptcy.

There have been many reports indicating how the changes made to the bankruptcy law passed by Congress in 2005 have prevented some individuals from filing bankruptcy. It is true that these changes have made the process more complicated, but the fundamental right to bankruptcy and many of the benefits gained from it remain the same for many individuals.

What is Bankruptcy?

Bankruptcy is the legal process that provides a person who can not pay their debts can have a fresh start. The federal law provides the right to file bankruptcy. All bankruptcy cases are handled in federal court. Bankruptcy immediately stops all creditors from collecting their debts, at least until their debts are settled according to law.

Bankruptcy contemplates the “forgiveness" of debts and has its roots in the Bible. Under US law, the debtor can only receive the elimination of his/her debts through a Chapter 7 bankruptcy, once every eight years. Under biblical laws, debt elimination occurs at the end of a 7-year period.

A bankruptcy lawyer in Orlando can:
  • Eliminate the legal obligation to your debts. It is known as “liquidation" of your debts. It is aimed to give you a fresh financial start.
  • Stop foreclosure in your home and give you the opportunity to stay current on your payments. Bankruptcy, on the other hand, does not automatically eliminate mortgages or any other foreclosure on your unpaid properties.
  • Prevent the repossession of property. It can also order the creditor to return the property even after it has been repossessed.
  • Stop the attachment of your salary, harassment of your creditors, or any other similar action to collect your debts.
  • Reset or stop termination of any utility.
  • Stop any claims from creditors who have committed fraud or who have tried to collect more than you owe them.
A bankruptcy attorney in Orlando, FL cannot:

On the other hand, bankruptcy can not solve all your financial problems. Nor is it the best alternative for every individual. In bankruptcy, it is usually not possible:

Eliminate some insured debts – An example of an insured debt is if you have any mortgage or foreclosure on some property as collateral for a loan, auto loans are also included. You can force these creditors to take installment payments during the bankruptcy process, and this can free you from your duty to pay your debt if you decide to surrender the property or the vehicle. But generally, you can not keep property or vehicles unless you continue to make your payments.

Some types of debts are excepted in bankruptcy law РSome examples of those as  student loans, child support, former spouse"s pension, criminal fines, and other taxes.

Protect co-debtors in their debts – When a friend has signed, as co-debtor a loan and the consumer gets rid of bankruptcy loans, the co-signer may have to continue paying all or part of the loan.

Eliminate debts that arise after the bankruptcy is over.

Related Video: