The thought of declaring bankruptcy may have never crossed your mind.
However, as the coronavirus pandemic continues to surge, many people are struggling to manage resources and pay their bills. In some cases, declaring bankruptcy may be the best option to resolve significant financial challenges. It’s a step not taken lightly, and DeZayas Law Group can help you determine if bankruptcy is right for your situation.
Job loss, medical debt, and divorce are among the biggest reasons for considering personal bankruptcy, and many cases result from a combination. COVID-19 has certainly contributed to a high rate of unemployment, health issues, and marital stress. If you can only pay your bills with a credit card, or are using one card to pay off another, it’s time to evaluate your options.
Explore your Options
The two major forms of personal bankruptcy are Chapter 7 and Chapter 13. Which one may be right for you depends on certain financial measures. Basically, Chapter 7 is for those who can’t pay their bills and earn less than the median income in their state, based on family size. Chapter 13 is for those who have a steady income but have incurred a certain level of debt. A “means test” is used to determine eligibility, and our attorneys can break down the differences with you.
Evaluate your Debt
Evaluating the type of debt you are facing is the first step in determining if declaring bankruptcy could help you. It’s important to understand that bankruptcy does not eliminate all types of debt. Debts that can’t be cleared include student loans, child support, alimony, income taxes, debts to government agencies, debts for personal injury caused by driving while intoxicated, and any court fines or penalties. Certain assets you may hold are exempt from creditor actions. These “judgment proof” assets include home equity, partial equity in a car, social security payments, pension plans, 401(k) retirement savings, disability benefits, veterans’ benefits, alimony, and child support payments.
We’re here to help…
All of this can be overwhelming, and it’s important to have a knowledgeable attorney to help you make the best decisions and file appropriately. The DeZayas Law Group attorneys have a great deal of knowledge and experience in interpreting the bankruptcy code. They’ll ensure your forms are filed correctly and deadlines are met.
It’s also important to feel comfortable discussing the details of your financial situation with the lawyer you choose. These conversations can be hard, and both parties must be committed to open, honest communication. At DeZayas Law Group, we work hard to create a welcoming, safe environment for our clients.
While declaring bankruptcy can resolve some of your debt, it can also affect your credit rating. Our attorneys will stand with you throughout the process, then help you reestablish your financial health and credit. Helping clients get back on their feet is part of our commitment.
DeZayas Law Group is central Florida’s all-inclusive law firm offering professional services with the experience and track record you need to handle your legal representation. For more information or to learn more about our attorneys, call us at (863) 904-4710 or click here.