Lewis & Monroe, PLLC
Free One-Hour In-Office ConsultationsFree One-Hour In-Office Consultations

What can you do if you have overwhelming debt?

These days many Florida residents are facing the consequences of having accumulated overwhelming debts, such as credit card debt, mortgages and car loans. There can be many reasons for these financial hardships including job losses, medical expenses and the housing market crash that has hit Florida particularly hard.

Though many different options are available in order to help people get out from under overwhelming debt, there are two forms of personal bankruptcy that are very popular options.

One of these is filing for Chapter 13 bankruptcy protection. This form of bankruptcy is most appropriate for those individuals who have significant property that they do not want to lose. These individuals also typically have a regular income, but are having trouble making end meet because they are carrying so much debt.

In such a scenario, Chapter 13 will allow them to keep some of their property if they can negotiate a court-approved repayment plan for a three to five year period, so that they can catch up with their debt obligations.

For others, either those who have little property or so much debt that they cannot pay off their obligations under a repayment plan, then Chapter 7 may be the right route. Under Chapter 7, an individual's assets are liquidated in order to pay off creditors. One benefit of Chapter 7 is that most unsecured debt will get discharged.

In either case, property can be protected from unsecured creditors by filing for protection under bankruptcy laws. Once a bankruptcy petition has been filed, creditors must stop harassing you during the bankruptcy process and even after the debts are discharged. This means that creditors will not be allowed to garnish your wages or foreclose on your home while you are under the protection of a bankruptcy trustee.

It is important to note that d etermining which form of bankruptcy or debt relief is most appropriate will depend upon the circumstances of each individual's case.

Source: Chicago Tribune, "The pros and cons of bankruptcy," Elliot Raphaelson, July 17, 2012

No Comments

Leave a comment
Comment Information
ABA Defending Liberty Pursuing Justice American Bankruptcy Institute The Florida Bar 1950 CFAWL Criminal Florida Association For Women Lawyers Orange County Bar Association
Email Us For a Response

Contact The Firm In Orlando, Florida

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Lewis & Monroe, PLLC

651 Rugby Street
Orlando, FL 32804

Phone: 407-917-4147
Fax: 407-246-0008
Map & Directions