As the bills stack higher and higher, you may find yourself “suffocating” under the giant stack of worry and stress. Bill collectors, while they do have limitations as to how far they can go to collect the money you owe them, are relentless and can seem very intimidating at times. For this reason, many have begun looking into bankruptcy as a viable alternative to just letting themselves sink lower and lower into the hole of debt they have created. Whether you are claiming Chapter 7 or Chapter 13 bankruptcy, having someone in your corner like a creditor harassment lawyer can really relieve some of the stress and worry associated with the complicated process of claiming bankruptcy.
The first, and most common, type of bankruptcy is referred to as Chapter 7. In Chapter 7 bankruptcy, the debtor turns over all non-exempt property and that property is liquidated and used to pay off their debt. The list of non-exempt items changes from state to state so make sure you check with your Florida bankruptcy attorney who will be the most up-to-date with your local laws. Since people claiming Chapter 7 will have a majority of their items be exempt, this is the most reasonable choice to help debtors get a quick restart. After claiming Chapter 7 bankruptcy, debtors are released from their debts in 4-6 months, allowing them to get a fresh start in life without long, drawn out court proceedings. Once you have gone through the process of claiming Chapter 7 bankruptcy, it will be reported to the credit bureaus that you have claimed bankruptcy and this will stay on your record for 10 years.
Because of new laws associated with claiming bankruptcy, all persons wishing to claim bankruptcy must now take a test to determine which type of bankruptcy they can claim. For those who do not qualify for Chapter 7 bankruptcy, or if they wish to keep their non-exempt property, Chapter 13 may be the right option. Chapter 13 bankruptcies are designed for people who have a considerable income that can cover their expenses with a little extra to go towards debt. Chapter 13 bankruptcy is a plan that allows debtors to pay off their debt within 3-5 years. There have been many additions to claiming Chapter 13 bankruptcy that make it quite difficult to claim this type of bankruptcy. Again, someone like a Florida bankruptcy attorney will know the most up-to-date laws pertaining to the state or county you live in. As with Chapter 7 bankruptcy, Chapter 13 bankruptcy stays on your credit report for 10 years and will be visible to anyone who requests a credit check on you. The further from the date you claim bankruptcy, the less some institutions penalize you for having it on your record.
If you find yourself surrounded with debt, no way to get out, and have creditors pounding down your door, call a creditor harassment lawyer in your area and get on your way to claiming bankruptcy. By doing so, you will save yourself years and years of frustration and begin to rebuild your life quicker.