A New Start after Bankruptcy

There may come a point in your life that you are faced with over whelming bills, the financial stress you are facing may seem hopeless. At this point you may decide that you have no way out except to file for bankruptcy.

Comparison of 2007 and 2008

In 2008 when compared to bankruptcy filings, there were over 200,000 more bankruptcies that were filed. And if you compare the states totals from year to year almost every state had an increase in the amount of filings. It’s a sad statistic that shows just how bad the economy has gotten. With the crash of the housing market, tons of people were faced with losing their homes, and several of these may have helped to contribute to the higher rates.

What Attorney to Choose

You should compare a few different attorneys before you pick the one to help you. Picking the first attorney may be a bad way to go but if you talk to more than one you may find a lawyer who will charge you less in fees. Feeling at ease with the lawyer you choose is very important too. Plus you should find out if the fees of the lawyer you pick and whether they include the filing costs of your bankruptcy. Another great thing to find out from the lawyer is if they will accept payments for the fees. The only thing about this way of paying your attorney is that they will not file the petition until you have the fees all paid off. However, what’s nice about this is that once you have agreed to hire the lawyer you will be able to refer those collection calls to your new lawyer.

Which Chapter?

Now it’s best to ask the Sarasota lawyer that you hire which chapter is best, but these are a few highlights of the choices you have. There are three different chapters of bankruptcy; they are the chapter 7, chapter 11, and chapter 13. First off the chapter 11 is normally used by corporations in order to reorganize their bills. However, there are a few people who may file with a chapter 11 if they own a business. With a chapter 7 you will need to qualify for it first, this is where your lawyer comes in very handy. They will find out a few specifics about your finances and what you would like to have happen. Than they will let you know which bankruptcy is the best for you. A chapter 7 will allow you to have credit card and medical bills discharged. But it will not protect a house from foreclosure hearings. While a chapter 13 will stop the proceedings of a foreclosure when it’s filed in the courts. This will give you the chance to be able to catch up the mortgage payments and keep your house. However, with a chapter 13 you will need to reorganize your bills and make payments on them. Of course it will normally be around 50% of what was owed on the bills, and you will have anywhere from 36 to 60 months.

How to File

Your attorney will help you get all the paperwork ready once you hire them. But you will need to provide them with a listing of all your assets and liabilities as well as how much you make and what you pay out each month.

** This is not legal advice. Please consult with a local attorney regarding your specific situation.**

About the Author – This article was provided by Gerrid Smith and sponsored by the Jodat Law Group in Sarasota, FL.

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