Understand What Bankruptcy Is and Is Not
At the P.R. Smith Law Group in Tampa, our lawyers can counsel you on Chapter 7 and Chapter 13 bankruptcy, as well as Chapter 11 bankruptcy for business owners, to help you deal with unsecured and secured debts. There are many myths that exist regarding bankruptcy, and we can help to dispel many of those myths.
Some Common Myths Include:
I'm Worried About Losing My House
In general, Florida law provides protections for your home, car and basic personal household items such as furniture, electronics, clothing, etc. Consequently, in most instances, you are entitled to keep these possessions even after you file bankruptcy.
Will I Lose My Pension, IRA or 401(k)?
No. Federal and Florida laws allow you to keep your pension, IRA or 401(k).
Can I Ever Rent or Buy a House After Filing for Bankruptcy?
If you are presently renting a home or apartment, usually your landlord will allow you to renew your lease without running an updated credit report and will not have any knowledge that you have ever filed bankruptcy. If you are seeking a new lease, there may be some slight difficulties that can be easily overcome. We have found that landlords will rent to you if you can demonstrate the ability to pay a sufficient deposit and have a stable work history.
Can I Lose My Job for Filing Bankruptcy?
No. There are specific laws that forbid discrimination against people who have declared bankruptcy. For example, you may not be denied a job, denied or evicted from public housing, or denied a driver's license just because you filed for bankruptcy.
Won't Bankruptcy Ruin My Credit Forever?
No. Contrary to popular belief, bankruptcy gives you the unique opportunity to rebuild your credit by releasing you from burdensome, unmanageable debts. While a bankruptcy discharge will remain on your credit report for seven to ten years, there are several steps to rebuilding your credit once the bankruptcy is complete, such as:
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Paying monthly bills on time and in full
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Actively monitoring your credit score
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Making responsible financial choices
In most cases you can expect to re-establish your credit in two years or less. Once you receive your discharge, we will send you a package of information to assist you to rebuild your good credit.
I Must File Bankruptcy Together With My Spouse.
Married couples can file jointly or separately depending on their situation. Federal laws protect spouses' individual accounts from each other, though bankruptcy will affect jointly-held accounts and assets. Therefore, it is important to consult with an experienced Florida bankruptcy attorney before filing to understand your rights and options.
Can I File for Bankruptcy Only Once?
Although there are limitations on how frequently you can file bankruptcy, you may seek debt relief through bankruptcy as many times as you need. Federal guidelines dictate that you may receive a discharge through Chapter 7 once every eight years and a discharge through Chapter 13 every two years, with additional regulations regarding the required number of years between any combination of the two (filing Chapter 7 and then filing Chapter 13, or vice versa).
Bankruptcy Is Only for People Who Cannot Manage Money Properly.
Bankruptcy is a means for good people who are going through difficult situations to obtain the debt relief they need. Many people file because they have lost jobs, suffered a pay cut, gone through a tough divorce or experienced a serious medical illness or injury.
It is important to remember that your credit will not improve on its own. Those who actively engage in re-establishing their credit can regain confidence in themselves and with creditors.
Contact Us for a Free Initial Consultation
Learn more information about other bankruptcy myths in Florida. Contact the P.R. Smith Law Group for a free initial consultation. Call us at 888-682-5251 or send us an e-mail to get started today.
