Should I file Bankruptcy?

A decision to file for bankruptcy should be made only after determining that bankruptcy is the best way to deal with your financial problems. Many factors determine the answer to this question. However, there is a reason that bankruptcy is a right available by law. A bankruptcy is designed to give you a fresh start and allow you to focus on your future instead of drowning in your past.

What is Bankruptcy?

Bankruptcy is a legal proceeding in which a person who can not pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law.

What should I bring to my first appointment at The Owens Law Firm, P.A.?

If you have been served with foreclosure papers or a foreclosure summons then you should bring these documents. You should also bring your last bill or payment coupon from the mortgage company. You should also determine the current value of your home and be prepared to discuss the history of events that led to this point. By doing this we will be able to gain a complete understanding of your situation and be better prepared to present your customized solution.

Will I lose everything?

Absolutely not.  In fact, in most cases you will be able to keep everything you own.  In a Chapter 7 bankruptcy you are allowed to keep all of your exempt assets.  These exemptions are determined by the length of time you have been in Florida.  Assuming that you are using Florida exemptions you and your filing spouse have  exemptions of $1,000 in personal property and $1,000 in a vehicle exemption.  If you do not own a home or are surrendering your home you both qualify for an additional $4,000 exemption towards personal property.

If you have significant assets or are concerned about losing particular property a Chapter 13 bankruptcy may be your best option.  In a Chapter 13 bankruptcy you are allowed to keep all of your property but you will be required to pay to unsecured creditors the amount that you would have paid if your non-exempt property was liquidated in a Chapter 7 bankruptcy.

To discuss how the bankruptcy process can help you keep your property please contact our bankruptcy attorney.

Can I file bankruptcy and keep my house?

Yes, you can file bankruptcy and still keep your house.  In fact, a Chapter 13 bankruptcy has powerful tools that often times make it easier to keep your home.

If you have two mortgages on your home, and the current value of the home is less than the amount that you owe on your first mortgage, you may strip your second mortgage.  This means that by filing a Chapter 13 bankruptcy you may be able to get rid of your second mortgage altogether.

Even if you don't have a second mortgage, a Chapter 13 bankruptcy can force your mortgage company to begin taking payments again, and also may provide the opportunity to force a loan modification.

Can I file bankruptcy without my spouse?

Yes, you can file bankruptcy without your spouse.  In most situations it is better for both spouses to file but it is not required by law.  The decision to file without your spouse is one that should be considered with the assistance of an experienced bankruptcy attorney.  The cost of filing jointly is the same as filing as an individual.  If you have questions about protecting one spouse's credit, how bankruptcy may affect the non-filing spouse, and how your spouse's income may effect the bankruptcy, please contact our bankruptcy attorney.

Can I file bankruptcy without an attorney?

Yes, you can file bankruptcy without an attorney.  However, it is rarely a good idea.  In the same way you can fix your transmission without a mechanic, file complicated tax returns without an accountant, or fix broken bathroom pipes without a plumber, the better question is should you file a bankruptcy without an attorney.

Most attorneys offer a free consultation so you should at least speak to a bankruptcy attorney before you decide if filing bankruptcy without an attorney is right for you.

Who will know that I filed bankruptcy?

Unless someone looks specifically for you in the bankruptcy records, the answer is no one.  Although, bankruptcy filings are public record, these records are not plastered in the local paper or listed in a place that people would accidentally find out.

Will filing bankruptcy stop the phone calls?

Yes, one of the immediate benefits of filing bankruptcy is contained in the automatic stay.  In basic terms this means that all collection activities and lawsuits must stop immediately.  This includes the phone calls and nasty letters you may have been receiving from debt collectors.

How will bankruptcy effect my credit score?

Your credit score is a complicated number to predict.  Many things go into your credit score including the filing of  a bankruptcy. While a bankruptcy does immediately effect your credit score it sometimes can actually improve your credit score down the road. Although a bankruptcy damages your credit immediately, it also discharges much if not all of your debt which results in a fantastic debt to income ratio.  The bankruptcy should also fix many of the problems that caused you to fall behind on payments in the first place.  As such, you will have little to no debt and be able to pay your bills with greater ease, both of which are major factors in building your credit score.

 Will I ever be able to buy a house?

Yes. Just like anything else the ultimate answer relies upon the specific creditor but there is nothing that legally prevents you from buying a new home.  In fact, the recent financial meltdown has created a new normal when it comes to credit and loans.  Many people find they qualify for traditional loans in a short time after filing bankruptcy, while others choose to finance through a more untraditional methods such as lease purchase options.  No matter which path you choose a bankruptcy is not a bar to home ownership.

Will I ever be able to buy a car?

Yes, you will be able to buy a car after you file bankruptcy.  In fact, there is nothing prevents you from buying a car immediately after filing bankruptcy.  The ability to buy a car depends on many factors of which bankruptcy is only one.  Remember millions of people have recently filed bankruptcy and you haven't noticed traffic getting any better have you?  We can help you find companies that specialize in helping people that have filed bankruptcy buy a car.

Can filing bankruptcy help save my home?

Often times the answer is yes. There is no way to answer this question accurately without having a complete financial picture, however a Chapter 13 Bankruptcy is a powerful tool for people that want to keep their property and can show enough income to make a mortgage payment. To discuss your options please contact us to schedule your free initial consultation.

What property can I keep if I file bankruptcy?

In a Chapter 7 case, you can keep all the property which the law says is “exempt” from the claims of your creditors. It is important to check the exemptions available in the state where you live. NOTE: If you moved to your current state from a different state within two years of your bankruptcy filing, you may be required to use the exemptions from the state where you lived before.  Most people that file a Chapter 7 bankruptcy are able to keep all of their belongings.

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