The Down Low About Bankruptcy

If you are considering filing for bankruptcy, you already know that financial pressures can have a domino effect on your life.  Not only are you stressed about the piles of bills; you dread answering the phone or opening the door, never knowing if it’s a bill collector there to hassle you. Crushing debt can impact your relationships, your ability to concentrate at work, and more. So is bankruptcy the solution you’re looking for?

Benefits of Filing for Bankruptcy 

There are numerous benefits that automatically rain down on you after filing for bankruptcy.  Consider the following:

• Most, and sometimes all of your debt may be discharged, meaning you no longer have any obligation to make those monthly payments. Indeed, you have a new beginning, financially speaking.
• Foreclosure proceedings on your home stop, and you get the opportunity to address any defaults.
• Your vehicles and personal property are no longer under threat of repossession.
• You no longer have to blanche every time the phone or doorbell rings because debt collectors can no longer harass you.
• No longer will your wages be garnished.
• You don’t have to worry about having utilities being shut off, or, if they have already been terminated, services will be restored.
• Secured debt such as for your home or vehicle will have lower monthly payment requirements.

It’s No Cure-All 

There are limits, however, to what a bankruptcy filing can do for you. Be aware of the following:

• Certain debt cannot be discharged or reframed into lower monthly payments, including child support and alimony requirements, most taxes and student loans, and criminal fines and restitution fees ordered by the court.
• Although most major secured loans can be modified so you can pay off defaults over a period of time, some secured loans offer creditors protections from other adjustments to the terms of the loan.
• Although you may have debt discharged and be able to wash your hands of it, co-signers are not so lucky. They may be stuck paying off some or all of the loan.
• If you accrue additional debt after filing for bankruptcy, it will not be included in the discharged debt.
• Your credit report will show that you’ve filed bankruptcy for 10 years, meaning you’ll have a tough time getting credit for a while.

Is Bankruptcy for You?

 Filing for bankruptcy will cost you some time and money up front, without question.  But for those struggling with cumbersome debt, it is often the best step toward relief. At The Law Office of Julia Kefalinos, our experienced Miami bankruptcy attorneys can answer your questions and help you to make the best decision for your circumstances.  To discuss, schedule a confidential consultation in our office today.