What Florida Bankruptcy Can, and Cannot, Do For You

In most bankruptcies in the State of Florida, the filer does not have to appear in court. He, or she, only has to attend a “meeting of creditors,” which also includes a “bankruptcy trustee.” Appearing before a judge usually occurs if the filer is challenging a debt and claims he does not owe it, or that he owes only part of it. Although bankruptcy is the best legal means of “eliminating (or ‘discharging’) most, or all, of your debt,” there are certain things bankruptcy can, and cannot, do for you. Bankruptcy is able to: 1) Stop home foreclosure and vehicle repossession, while you “catch up on missed payments” –Bankruptcy can even make creditors return property which they’ve already confiscated. 2) Stop wage garishment and debt collection calls, 3) Prevent, or restore, utility shut-offs, 4) Allow you to “challenge creditors who have committed fraud” by trying to collect more than you owe, or by trying to collect debts that aren’t yours, 5) Allow you to pay creditors the amounts your home and/or vehicles are now worth, and erase these debts. However, bankruptcy cannot: 1) Erase, automatically, home mortgages/leins, or vehicle leins, because these are “secured rights” of creditors–This means creditors “hold” your home or vehicles as collateral for funds they lent you. However, bankruptcy often induces creditors to take your payments for these properties over time. And, in bankruptcy, you might not have to continue to make payments if your property is foreclosed on, or repossessed. 2) Erase certain debts outlined in bankruptcy laws–also called “non-dischargeable debts”–such as “child support, alimony, student loans, court-ordered restitution, criminal fines and some taxes,” 3) Protect the people who’ve cosigned for your debts–In bankruptcy, your cosigners “may have to repay all, or part of, your loans, etc.” 4) Eliminate the debts you accrue after you’ve filed bankruptcy, 5) Wipe out loans you were able to secure by giving creditors “false information.” Furthermore, if you receive “an inheritance, property settlement or life insurance payout” within 180 days of your bankruptcy’s closure, these monies may be forfeited to your creditors. Please, do not wonder if you fully understand the information provided here. Contact us for expert help with all matters related to filing bankruptcy in Florida.