If you are overwhelmed with debt filing for bankruptcy may help bring some financial relief. Bankruptcy can allow the borrower to restructure his outstanding debt and emerge from the bankruptcy with a fresh start. Under Chapter 13 bankruptcy law, the debtor has the opportunity to restructure his debts and make monthly payments to pay the debt in full. Another option available for personal debtors is filing for Chapter 7 bankruptcy. Under Chapter 7 bankruptcy law, the debtor liquidates certain assets as payment for his debts. Chapter 7 and Chapter 13 bankruptcy does have many benefits; however, it may not be a good decision for everyone. Anyone considering filing for bankruptcy should always consult with a Tampa bankruptcy attorney before taking any action. A Tampa bankruptcy lawyer can advise a debtor on his legal options and the possible alternatives to filing for bankruptcy.
In some cases negotiating with your creditors may be a better option than filing for bankruptcy. If you have some income or assets that you are willing to sell you may be able to negotiate a deal with your creditors. Successful negotiating with the creditors may convince them to accept less than the full balance owed. A debtor can employ a Tampa bankruptcy lawyer to help with the negotiations or try and negotiate directly without hiring a lawyer.
Another possible alternative to filing for bankruptcy is to participate in credit counseling. Typically, a credit counseling agency will work with the debtor to try and create a plan to pay back the creditors in monthly installments. One of the benefits of seeking credit counseling instead of bankruptcy is that a bankruptcy filing will not show up on a debtor’s credit report. In addition, there is usually no need to hire a Tampa bankruptcy attorney for credit counseling. By not hiring a Tampa bankruptcy attorney a debtor may be able to save a substantial amount on legal fees. On the other hand, credit counseling does not afford the debtor many of the protections that a Chapter 13 bankruptcy would. For instance, credit counseling programs usually require the debtor to pay the full balance of the debts owed. In Chapter 13, debtors usually only have to pay a small percentage of the amount owed to satisfy their debts. In addition, credit counseling does not prevent creditors from initiating collection activities like a Chapter 13 filing would.
There are many benefits and disadvantages to bankruptcy filings and bankruptcy alternatives. To find out more information on which option may be best for you speak with a Tampa bankruptcy attorney. If you would like more information contact Florida Law Group to schedule a free consultation with one of our Tampa bankruptcy lawyers.
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