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Determine whether or not to file for Chapter 7 bankruptcy

On Behalf of | Jan 11, 2018 | Chapter 7 Bankruptcy, Firm News

Health insurance costs in Florida and around the country are skyrocketing. In fact, many consumers are forced to be uninsured now because it is difficult to afford the monthly premiums. While premiums are often priced out of reach for many, the alternative is equally frightening. A serious accident or illness could quickly deplete the assets of an uninsured person and create a financial disaster. In fact, many people who file either Chapter 13 or Chapter 7 bankruptcy do so as a result of staggering medical bills.

Experts warn that more financial hardships may be looming due to the level of consumer debt. Other issues creating potential problems are the default rate on student loans and the sub-prime auto lending marketing. All these potential problems in the financial market may cause consumers to consider filing for bankruptcy should their circumstances become overwhelming. Determining whether or not to file for bankruptcy, then choosing what type to file, are important decisions.

There are various tools available for consumers to help in the decision-marking process. Many of these can be found online and can help someone evaluate debt, income and asset levels. Information about the different types of personal bankruptcy will also be presented. Chapter 13 bankruptcy includes a plan for individuals to repay their debts. A bankruptcy of this type stays on someone’s credit report for seven years.

Chapter 7 bankruptcy involves a person’s unpaid debts being discharged by the court. Some assets may be sold to repay some creditors; however, the majority of people who file for this form of bankruptcy do not lose assets in the process. It is important to note that certain obligations, such as alimony, child support and student loans, must still be paid.

Experts suggest that filing for Chapter 13 or Chapter 7 bankruptcy can offer consumers a fresh start on their finances, with an opportunity to rebuild their credit. A Florida bankruptcy attorney can provide information on the various options and recommend a plan that is best for a client. An experienced lawyer can help those interested in getting their financial situation back on the right path.

Source: Chicago Tribune, “Help Squad: Is bankruptcy right for you? And what kind?“, Cathy Cunningham, Jan. 3, 2018

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