Bankruptcy Information You can Understand

If you are considering filing bankruptcy in Miami, it is important that you hire a Miami bankruptcy lawyer to help you. Filing bankruptcy is a difficult decision to make and one that will have affects on the rest of your life. Bankruptcy is a complicated process, not just a quick fix to maxing out your credit cards. If you are considering bankruptcy, here are is some basic information that is clear and easy to understand.

  1. Make absolutely sure that you have no other options. Bankruptcy has lifelong consequences on your credit and other aspects of your life. Try debt relief or contact your creditors to see if they are willing to work with you before deciding on bankruptcy. Keep in mind, if you file for bankruptcy your creditors will not get all of the money you owe them. This means they are more willing to work with you to find a way for you to make your payments.
  2. Hire a bankruptcy and foreclosure lawyers in Miami to help you. Do not make the mistake of trying to file for bankruptcy yourself. It is possible you do not need to file for bankruptcy at all. Filing for bankruptcy involves negotiations with your creditors and with the courts, a bankruptcy lawyer is best equipped to help you get the best deal possible.
  3. Make sure you get your financial paperwork organized and keep copies of everything. Any debt not included when you file bankruptcy will not be discharged, and you will still be liable to make those payments. It is important that you pull your credit report to make sure all the debts you owe will be included.
  4. Figure out which Chapter is best for your situation. The laws are different in each state, and you should always get advice from a Miami bankruptcy lawyer to figure out which Chapter is best for you. Chapter 7 is a liquidation bankruptcy where some of your assets will be sold off, and the rest of your debt will be discharged. This is the simplest form of bankruptcy. Chapter 11 and Chapter 13 are both restructuring bankruptcy. A portion of the debt is paid off over several years and the rest of the debt will be discharged.

Do not take bankruptcy lightly. It is not just a simple way to start over financially and get out of debt. When you file bankruptcy, your credit score will be affected for years. You will not be able to borrow money at first. You may have a difficult time getting a job and the statistics on divorce after bankruptcy are very high. You should always consult a bankruptcy attorney in Miami to discuss your options before filing for bankruptcy.