Filing of the bankruptcy petition brings into effect an automatic stay against your creditors from trying to collect the debt from you. The stay remains in effective till your case is over – either you are discharged or your discharged is denied or you withdraw your case. Sometimes, the bankruptcy court may on request of a creditor release the stay. In Chapter 7, the stay generally continues till discharge while in Chapter 13 the stay generally continues till completion of the payment plan. If you are located in Pinellas County or Tampa Bay, a Clearwater FL Bankruptcy lawyer can help you file for bankruptcy.
Automatic Stay
If you file for bankruptcy in Florida under either Chapter 7 or Chapter 13, there is an automatic stay which means that you are safe from your creditors and they cannot:
- Try to bring a claim against you
- Try to enforce a judgment against you
- Try to gain property from you
- Try to create, protect or enforce any sort of lien against you
- Try to collect debts from you
If they indulge in any of these activities, then they are liable for damages. To avoid problems, make sure you give notice of your bankruptcy filing to all your creditors so that they become aware of the stay. This stay will not protect you against:
- criminal proceedings
- family support obligations
- losing a license
- creditors collecting from property that is not part of your estate
- the interception of a tax refund
- tax audits, being given notice of tax deficiency, demands for tax returns, or demands for payment of taxes (this only works on taxes that are not discharged)
Bankruptcy should not be viewed only as a last resort because it can save some valuable assets from creditors. Your home is often protected by a homestead exemption clause in your state, and pension plans and retirement funds are usually also protected. If you would have to put at risk your valuable assets that would otherwise be exempt from liquidation, then you need to consider Chapter 7 very carefully. Debtors based in Tampa should consult a Clearwater bankruptcy lawyer for the best advice on choosing the right bankruptcy chapter.
Discharge
The Chapter 13 debtor is entitled to a discharge upon successful completion of all payments under the Chapter 13 plan. In return for the willingness of the Chapter 13 debtor to undergo the discipline of a repayment plan for three to five years, a broader discharge is available under Chapter 13 than in a Chapter 7 case. A typical Chapter 7 case is opened and closed within three to six months, and the person filing emerges debt-free except for a mortgage, car payments, and certain types of debts that survive bankruptcy, such as student loans, recent taxes, and back child support.
Once you receive your bankruptcy discharge, you no longer legally owe your creditors for any discharged debts. You can resume your economic life without court supervision, except you must tell the court if you receive or become eligible to receive an inheritance, insurance proceeds, or proceeds from a divorce settlement within 180 days of the date you originally filed your papers. Bankruptcy remains on the credit report for nearly 10 years and thereby it becomes difficult to get any sort of credit from the banks including mortgage and car loan. Most of the lenders would reject your application if they see that you have filed for bankruptcy. Even if you manage to get credit, you will be charged high rate of interest. A Clearwater FL bankruptcy lawyer can assist you get a discharge.
Life After Bankruptcy
Life after bankruptcy is like a wound which would require some time to get healed up, so one should have the patience to bear the outcome and work accordingly taking into consideration all the ups and downs. In a way it polishes human nature makes them wise and takes them out from all sort of unhealthy practice. You can redeem your credit by Choosing the right bankruptcy chapter can be difficult. Chapter 7 is sometimes called “straight bankruptcy” and involves the liquidation of assets to pay creditors. In Chapter 13, the debtor must make payments according to a payment plan approved by the bankruptcy court. Chapter 13 has certain advantages over Chapter 7, including protection against foreclosure and the ability to relieve a wider range of debts.
There are many lawyers in Florida but not all of them can help you bankruptcy. You will need the assistance of bankruptcy attorneys. A Clearwater FL bankruptcy lawyer can guide you to select the most appropriate Chapter. He can analyze your financial situation and tell you what your alternatives are, as well as answer any of your questions. Bankruptcy filing is a complex procedure. Do not use those do it yourself bankruptcy kits. Use an experienced bankruptcy attorney. avoiding unmanageable debt and using secured credit cards and paying them on time.
