What You Need to Know About Filing a Bankruptcy

Every year, people file bankruptcy. Some people do it when they are getting a divorce while others do it to overcome crippling debt. Regardless of why you are thinking about filing, it’s important to work with a professional.

With the help of a Chapter 13 lawyer Orlando FL residents can learn more about the process.

Differences
You often have the option between a Chapter 7 and a Chapter 13 divorce. Your debt is discharged in most instances regardless of what you choose. However, Chapter 7 requires you to turn over nonexempt property, such as boats, RVs, and anything else that is identified as nonessential.

The other main difference is that a Chapter 13 would require you to make payments to a trustee where funds are disbursed to creditors. The payments you make will vary based on the amount of debt being discharged. The payments could last for 36 to 60 months.

Determining Eligibility
Not everyone is eligible to file a bankruptcy in order to get rid of debt. For example, student loans are typically not something that can be included in a bankruptcy. However, past due taxes, hospital bills, and credit cards can be included.

Working with a lawyer will help you to determine if you’re eligible. Your lawyer will also be able to guide you through the process so you know more about what to expect.

The Payments
What you pay will be considerably lower than if you were to continue trying to pay everything on your own. Some debt will be discharged entirely while other creditors will file a dispute. You can choose to include car and house payments or exclude them, providing you with some important decisions to make.

In the end, it’s important to explore all of your legal options before choosing to file a bankruptcy.

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