The benefits of filing for bankruptcy in Florida
On behalf of Bankruptcy Law Firm of Clare Casas on Thursday, February 26, 2015.
If someone is dealing with large amounts of debt, whether it is due to credit cards, medical bills or personal loans, they may struggle to pay what they owe, which may make it difficult to make ends meet. One option that eliminates unsecured debt is filing for bankruptcy. So long as a debt is eligible for discharge, a successful bankruptcy action may end when the courts issue an order of discharge, which removes the filer's liability for the outstanding balances.
Along with eliminating debt, filing for bankruptcy also has the benefit of stopping actions from creditors. Most creditors will stop calling or attempting to contact people after being informed they have filed for bankruptcy. In addition, the filing may also halt legal actions, like wage garnishments.
While there are a number of benefits of filing for bankruptcy, there are some drawbacks. Filing for bankruptcy lowers someone's credit score by around 200 points. Additionally, individuals who file will have this noted on their credit report for the next 10 years. This can reduce someone's ability to obtain credit or get loans with low interest rates. However, it is not uncommon for people to be able to restore their credit rating within a few years, so filing generally only causes temporary damage to someone's credit score.
Even if filing for bankruptcy is right for you, it is important to understand the process involved. Additionally, you will need to determine what type of filing fits your particular situation. You can find out more about what is involved by visiting our page that discusses whether bankruptcy is right for your particular situation.