Essential Insights from a Bankruptcy Attorney
No one really likes the idea of filing for bankruptcy, but it could help (and has helped) many people resolve their financial issues and get out of debt. However, even for people who are ready to file for bankruptcy, figuring out whether bankruptcy is the best course of action can be difficult and confusing. To help you determine whether filing for bankruptcy is the best option for you, here are some crucial factors to consider.
When Filing for Bankruptcy in Florida is The Right Move
If one or more of these situations or circumstances apply to you, filing for bankruptcy might make sense:
- You have incurred a massive amount of debt, such as credit card debt or medical expenses, that you can’t possibly afford to pay.
- You are not expecting to earn more money.
- You cannot cover even the minimum payment amounts on your current credit accounts.
- You do not want to use your retirement account to pay off debts or bills.
- You have been notified by your employer that your wage will be garnished.
- You need to stop home foreclosure.
- A creditor is suing you.
Generally speaking, filing for Chapter 7 may resolve all these issues, provided that the filer’s income is not more than the state’s average income. Filing for Chapter 13 may be better for people who need time to repay their creditors and whose incomes exceed the average income. Finally, filing for Chapter 11 is best for businesses that need to fix their finances without ceasing operations and closing their business.
When You Should Not File for Bankruptcy in Florida
In general, people should not file for bankruptcy if doing so will result in allegations of bankruptcy fraud, which can happen if a person:
- Provided falsified financial details to a creditor in order to secure credit.
- Maxed out their credit cards just before filing for bankruptcy.
- Intentionally concealed money or assets that they are not planning to disclose in their petition for bankruptcy.
- Transferred property to someone else for a price that’s less than its fair market price to avoid paying off creditors and before they filed for bankruptcy.
- Is currently facing fraud accusations.
- Intentionally utilized business assets for their personal expenses before filing their bankruptcy petition.
If any of these situations apply to you and you are entertaining the idea of bankruptcy, it would be in your best interest to speak to a Florida bankruptcy attorney to avoid the potential consequences of betting sued for bankruptcy fraud. Otherwise, you will still be on the hook for the debts you wanted to discharge with bankruptcy and face hefty fines and prison time.
Reach Out to a Seasoned Florida Bankruptcy Attorney Now
Depending on your specific circumstances, there may be other factors you should consider before filing for any type of bankruptcy. The best way to figure out if bankruptcy will benefit you, contact Brian McMahon, our Florida bankruptcy attorney. They will review your case for free and give you advice that fits your specific situation. Arrange your appointment by calling 772-228-6701 or reaching us online.