Even in small amounts, debt can be an ever-present stress. From the emotional toll of trying to juggle multiple payments to receiving harassing phone calls from creditors, being in debt is not easy for people in Florida. Getting out of debt can be even harder. If you are struggling under the weight of debt, Chapter 13 bankruptcy can be a viable option. Here are a few things you should know before going down this path.
As difficult as it may seem, you should avoid incurring any new debts before you file for bankruptcy. If you accumulate a lot of new debt when you already know that you are in a situation that will require bankruptcy, the court might consider your actions fraudulent. Fraudulent debts cannot be discharged during bankruptcy, and in some cases the court may choose to throw out your entire case. This would leave you with both the old and new debts.
As you approach bankruptcy, you might feel tempted to sell off or trade in certain assets like cars, jewelry, real estate and other personal belongings. This urge is understandable, especially if you are in a situation where you are worried about maintaining a sufficient income to keep creditors off your back and also buy groceries. However, like with incurring new debts, selling or transferring personal items can be seen as fraudulent.
Before reaching the point of filing for bankruptcy, many Florida residents reach a point where they feel they are out of options. We understand that this is a difficult period of time for you, but it is important that you follow certain procedures even before filing for bankruptcy. You can read more about Chapter 13 bankruptcy and the process for filing here on our website.