Why Choose Chapter 7 Bankruptcy?
If financial pressures are building, you may be feeling trapped. You owe so much money to so many different places, it seems you’ll never get out from under the debt. What are your options moving forward? One that you should seriously consider is filing for bankruptcy. While it may sound drastic, it could be just the solution you are looking for. There are benefits you may not have considered:
The End of Serious Worries
You get some temporary relief so you can think straight. Once you file for bankruptcy, you will finally be able to sleep without worrying that your utilities will be shut off in the morning, or that your landlord will evict you. Creditors will not stalk you, your vehicles will not be repossessed, and your wages will not be garnished. Sound too good to be true? Maybe—but when you file for bankruptcy an automatic stay is triggered, which is designed to give you time—and assistance from a knowledgeable individual assigned to your case– to figure out how to tackle the situation.
Debt Will be Discharged
Unsecured debt, including credit card and medical debt, are eliminated in a Chapter 7 filing. Secured debts, such as those with liens or collateral attached to them, will be eliminated after the item is repossessed or foreclosed on.
No More Wage Garnishments
Creditors cannot come after you by garnishing your wages, tapping your bank accounts, calling incessantly, or showing up at your place of work or your home.
No Seizure of Household Goods
Creditors who may wish to come after you will not be able to take household goods—the personal property in your home that is considered necessities. So while life will definitely feel like things are upside down in life, your clothes, furniture, linens, appliances and so forth will still belong to you up to a certain dollar limit.
Car & Mortgage Loans get Flexible
With it comes to your car loan, it’s possible to work out a deal where you pay the creditor only the value of the car when the payback amount is higher. For example, the $10,000 you owe for a vehicle that’s depreciated to be worth just $6,000 saves you several thousand dollars. The caveat is that, in most cases, you have to pay back the amount in a lump sum before the end of the bankruptcy period ends.
The Lights Come Back On
Utility terminations end, giving you 20 days to come up with a deposit and/or the opportunity to start making regular payments. Past-due payments are washed away.
Suspended Driver License is Restored
If you have any unpaid court judgments and there’s a threat of losing your driver license—or if you’ve already lost it because you owe on the judgment— the bankruptcy action will be able to discharge the judgment and you can keep your license—or get it back if you’ve already lost it.
We Can Help
While bankruptcy is a major step, it can be the only way to bring stability to a life that has been disrupted due to financial calamity. There are many issues to consider, and you will need legal guidance. To discuss the process and your options, contact the experienced Miami bankruptcy attorneys at the Law Office of Julia Kefalinos today.
