If You’re Going to File for Bankruptcy, Sooner Is Better Than Later


Financial problems have a way of paralyzing people. When you are in debt and unable to make your payments, every phone call or trip to the mailbox can induce anxiety. As a result, many people who experience financial problems choose to ignore them for months or even years, hoping they just go away. Unfortunately, these problems almost never go away on their own. Often, they result in wage garnishment, accrual of interest, and even lawsuits.
If you realize that your financial problems have gotten out of hand and that, realistically, you only have a slight chance to pay your debts back, discuss bankruptcy with an experienced attorney. At Berkowitz & Myer, we will review the facts of your case at no cost to you and let you know whether we think bankruptcy is right for you. To schedule an appointment with one of St. Petersburg bankruptcy lawyers, call our office today at (727) 344-0123 or contact us online.
Chapter 13 bankruptcy is often a good option for people who make regular income and own assets that they’d like to keep. Unlike Chapter 7 bankruptcy, in which a debtor’s non-exempt assets are sold off to pay back creditors, in Chapter 13, a debtor may keep assets—so long as the debtor stays current on court-approved Chapter 13 payments.
Chapter 13 is often particularly attractive to homeowners who have fallen behind on mortgage payments. First of all, anautomatic stay is put into place the moment a person files for Chapter 13. This stops a lender from starting foreclosure and will also stop an active foreclosure from proceeding. In addition, it allows homeowners to include their past due mortgage payments in their bankruptcies, giving them three to five years to pay it off. As long as homeowners stay current on mortgage payments after the past due amount is wrapped up into the bankruptcy, they can stay in their homes while enjoying bankruptcy protections.
At the conclusion of a Chapter 13 bankruptcy, the court will often discharge most, if not all, of a debtor’s remaining debts. In this way, Chapter 13 can significantly reduce a total debt load while allowing a person to keep assets and obtain a fresh financial start.
If you’ve gotten behind on your bills and are not sure whether you’re ever going to catch up, discuss your situation with a bankruptcy attorney as soon as you can.
Berkowitz & Myer offer a free initial consultation where we will take time to fully understand your situation and advise you as to all of your legal options. To schedule an appointment with a bankruptcy attorney in St. Petersburg, Florida, call our office today at (727) 344-0123 or send us an email through our online content form.

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