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5 Questions You Should Ask Before Declaring Bankruptcy

You’ve heard of bankruptcy before, and if you’re in a financial bind chances are you’re looking for a way out from under your debt. As the professionals at Carolyn Secor, P.A. can tell you, bankruptcy is an enticing option, but it shouldn’t be taken lightly. Fortunately, you can get in touch with us to see how we can help you through your bankruptcy – and you can read this FAQ to weight the pros and cons of declaring bankruptcy for yourself.

  • What are the Consequences of Declaring Bankruptcy?

Many people assume that bankruptcy is an “easy out” and when they declare bankruptcy, they won’t have to worry about their finances. Unfortunately, declaring bankruptcy isn’t the blank slate many people assume it to be. When you declare bankruptcy, your credit score takes a huge hit, and some types of bankruptcy can stay on your record for up to ten years. It’s a major hurdle to overcome in your future, especially if you’re planning on applying for loans, housing, or jobs.

  • What is Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is one of the most common types of bankruptcy for personal finances. When you declare Chapter 7 bankruptcy, you’re liquidating your assets. As a chapter 7 bankruptcy lawyer in Tampa, FL can explain, this means you’ll sell off all of your properties, including family heirlooms, real estate, collections, and pretty much everything else in your name that can be sold off for money. This money will go towards paying off your creditors.

  • What is Chapter 13 Bankruptcy?

When it comes to declaring personal bankruptcy, the choice is generally between Chapter 7 and Chapter 13. While Chapter 7 bankruptcy involves liquidating your assets to satisfy your creditors, Chapter 13 is a more long-term solution. When you declare Chapter 13 bankruptcy, you’re coming up with a court-approved repayment plan, and you’re sticking to it for as long as it takes to pay off your creditors.

  • Do I Still Need to Pay Taxes if I Declare Bankruptcy?

Taxes are a pain, but unfortunately, you can’t get out of paying them if you declare bankruptcy. There are some payments that are unavoidable, no matter what you try. This includes student loans, spousal or child support, and money that you may owe to the government in the form of fines. Additionally, if you hurt someone in an accident because you were intoxicated, you’ll have to keep paying off their compensation.

  • What Should I Expect from a Bankruptcy Lawyer?

Declaring bankruptcy is a complicated business, and you’ll need all the help you can get. When you get in touch with a bankruptcy lawyer, you’re getting a legal professional who can guide you through the entire process, as well as an experienced and informative resource who can help you decide which bankruptcy option is best for you.

Get in Touch with Carolyn Secor, P.A. Today

Don’t hesitate to get the bankruptcy help you need. Reach out to Carolyn Secor, P.A. today to see how we can help you navigate your bankruptcy and get your life back on track.