Are you living paycheck to paycheck struggling to pay your debts to the point that it’s affecting your health? If so, declaring bankruptcy and starting with a clean slate may be a necessity. Because it’s perhaps the most serious decision you’ll make regarding your finances, you’ll be required to receive pre-bankruptcy credit counseling whether you file for Chapter 7 or Chapter 13.
Now you may be wondering why this is necessary. At its most basic terms, bankruptcy is a legal procedure that allows people to receive a discharge from paying certain types of debts, allowing them a new or fresh start. However, this procedure is significantly more complex as debtors are required to liquidate a portion of their assets and property, based on their unique circumstances..
Bankruptcy credit counseling will help you understand the pros and cons of filing for bankruptcy and it will also show you what other options may be available as an alternative, allowing you to make an educated decision regarding your finances. During the counseling your finances will be evaluated and you may have to explain the circumstances that lead to your financial problems. By the end of the session you’ll know whether there are repayment options available or if bankruptcy is your best option.
Remember that your bankruptcy filing may affect your credit for ten years regardless of whether you file for Chapter 7 or Chapter 13.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.