How to File for Bankruptcy in Orlando

Melbourne, Titusville & Cocoa Debt Reorganization Assistance

It is normal to be hesitant or unsure about filing for bankruptcy.  Depending on your financial situation and the types of debt you need to get rid of, bankruptcy can provide you with a release from the hardship of insurmountable debt.  However, due to the credit impact and the fact that some debts are non-dischargeable, it is a good idea to review your options carefully before acting.

Signs that bankruptcy may be the right choice

Bankruptcy is generally the right choice when there is no other way around your debt.  Here are some warning signs:

• You spend more than what you make because of credit card payments.  When it is impossible to reduce your spending below your income, it is only a matter of time before all of your purchases end up on credit.  It may be a good idea to file for bankruptcy before your financial situation becomes any more complicated.
• Interest is causing your debt to grow faster than you can pay it off.  Minimum payments may keep creditors from coming after you, but you are not actually reducing your debt.  In this situation, bankruptcy is just a matter of time.
• You are unable to pay your bills.  If losing electricity and water is becoming routine due to financial hardship, review your financial options with a credit counselor or Orlando bankruptcy lawyer as soon as possible.

Steps for filing bankruptcy

1. Ensure that bankruptcy is actually your best option.  Contact a qualified bankruptcy law firm and review your financial situation in a consultation.
2. Determine which type of bankruptcy you wish to file.  Chapter 7 bankruptcy may enable you to discharge most or all of your debt, but is more likely to result in the loss of your house or car.  Chapter 13 bankruptcy allows you to create a realistic payment plan instead of dissolving your debt.  Good bankruptcy attorneys can advise you on the best choice for your circumstances.
3. Following your lawyer's submission of the bankruptcy petition, your creditors meet with a court-appointed trustee who validates the information in your petition.
4. Your creditors have 60 days following this meeting to challenge your petition.  Challenges are more likely to take place when filing Chapter 7 bankruptcy, since the discharge of debt means that your creditors will not see their money again.
5. In a Chapter 7 bankruptcy, a notice of discharge arrives after the 60 day period passes.  In Chapter 13 bankruptcy, this notice does not arrive until 30 to 60 days following your last payment.

Possible challenges when filing for bankruptcy

Because Chapter 7 can discharge most or all of your debt, it is more difficult to qualify for and more likely that you will face challenges when fiilng for bankruptcy. Often, creditors will attempt to prove fraud on your part.  They may do this by claiming that you incurred debt with no intention of being able to repay it.  Some bankruptcy cases are more susceptible to this kind of challenge than others.  Your lawyer can go over likely hurdles when analyzing your outstanding debt.

Long-term and short-term effects of bankruptcy

Potential challenges aside, the short-term effects of filing for bankruptcy are mostly positive.  The consolidation, reduction or elimination of your debt should provide financial relief and reduce stress.  The long term effects are more difficult, as bankruptcy remains on your credit report for seven to ten years after filing.

Filing Bankruptcy in Orlando, Titusville, Cocoa & Melbourne

The Law Office of Paul L. Urich focuses on bankruptcy and debt reorganization 100 percent of the time.  We offer low fees and a free initial consultation throughout the Orlando area. Contact us online or call at 888-341-6149 today.