Among the more common misconceptions about bankruptcy is that it comes without consequences. Many in Hernando County might see it as an easy way for you to get away with not having to pay your bills. It might even be tempting for you to view it as a more attractive option than having to submit to the harsh demands of your creditors. Be you should know that bankruptcy, for all of the financial protection it offers, can indeed have a negative impact. This is mostly felt in your credit rating, which could hinder your ability to borrow money for important purchases such as buying a home. Indeed, how long does it take to qualify for a mortgage after bankruptcy is one of the more common questions posed to us here at The Day Law Office.
For recent graduates in Florida, student loan debt can seem overwhelming. Entry-level positions, which are common post-graduation, may not always provide a sufficient level of pay. As a result, chipping away at debt may seem like an uphill battle, which can be very disheartening. In this case, Forbes offers the following advice.
Now that the holiday season is in full swing, many people in Florida are hitting the malls in search of that perfect gift for friends and family. While you’d naturally want to lavish your loved ones with presents, if you’re facing financial instability it’s important to limit spending this time of year. In this case, Forbes offers the following tips.
If you are familiar with U.S. bankruptcy law, then you probably understand why Chapter 7 cases are the most popular form of personal bankruptcy. They offer the chance to have debts be discharged, allowing one to get back on their feet in Hernando County (financially speaking) that much faster. Yet not everyone qualifies for Chapter 7 bankruptcy. Chapter 13, on the other hand, is viewed as almost being the default option that everyone qualifies for. There are scenarios, however, in which you may not qualify for a Chapter 13 bankruptcy either.
Most in Hernando County may assume that when one files for bankruptcy, their debts are discharged and they are no longer required to pay for them. This is indeed what happens in a Chapter 7 case, and there is good reason behind this popular assumption; indeed, according to information compiled by the American Bankruptcy Institute, 63.72 percent of all non-commercial bankruptcy filings in the second quarter of 2018 were Chapter 7 cases. Yet people have another option to consider when filing for personal bankruptcy: Chapter 13. This type of bankruptcy is often referred to as a "wage earner bankruptcy" in that filers are still required to pay their debts back over time.
Like many in Hernando County, you may be surprised at being asked to go through credit counseling prior to seeking personal bankruptcy. The reason for this requirement is three-fold; first, according the Administrative Office of the U.S. Courts, it is a federal requirement. Second, the hope is that you'll be able to avoid the issues that led to you struggling with debt in the future, and education such as this (as well as that which comes from the required debtor education you have to complete prior to your bankruptcy being discharged) should help with that. Finally, pre-bankruptcy credit counseling is to help both you and the courts understand if bankruptcy truly is your best option.
If you have a lien on your property in Florida, it could prevent you from being able to sell your property and pose a threat to your standing with your creditor or lender. If left unattended for too long, it could also begin to affect your credit and create problems that are much more complex to deal with than if you had initially taken care of the lien when it appeared. Fortunately, with a little work, you can get a lien removed on your property so you can regain your good standing.
A common misconception that many in Hernando Count have regarding bankruptcy is that it is just an easy way for you to not have to pay your bills. We here at The Day Law Office have even spoken with potential clients who have been told that through a bankruptcy's automatic stay, any collection efforts that have been initiated against them must cease. Yet while the automatic stay does indeed keep certain creditors from coming after you, it may not signal the end of having to deal with others.
Many Florida homeowners take out second, third and even fourth mortgages against their property in order to finance repairs, education or other major expenses. However, as you are probably aware, there are risks associated with this practice. What seems like a manageable leverage strategy at first has the potential to take a turn for the worse if the situation changes.
For people in Hernando County facing a rising tide of debt, filing for bankruptcy may be the best option. However, once the smoke clears you may be wondering how you can bounce back from filing and begin to take steps towards repairing your credit. TheStreet.com offers insight into the many ways you can bounce back from bankruptcy, which is crucial for preventing future financial issues from occurring.