How Can Filing Bankrupty Help Me?

How does filing bankruptcy benefit you?  The goal of a Chapter 7 bankruptcy is a discharge from debt. A discharge is an order from the Orlando bankruptcy court that says that a creditor cannot ever take any action to collect a debt that was owed at the time of the bankruptcy filing. A creditor who tries to collect such a debt can be punished by the Florida bankruptcy court, usually by civil contempt and fines. Credit reporting agencies are prohibited from reporting discharged debts and can be subject to civil penalties if they do so.

Chapter 13 bankrupycy provides the benefit of allowing the person filing bankrutpcy to keep property that is secure by debt, such as a home or a car.  In a Chapter 13 proceeding, we submit a plan to restructure and repay certain portions of debt that has become unmanageable. The Orlando bankruptcy court will supervise this plan for a period of three to five years. A Chapter 13 plan gives different treatment to creditors that have security or collateral for a debt, such as a bank or mortgage lender, from those creditors who do not, such as credit card companies or hospitals and other medical service providers. At the end of the plan period, those portions of your debt that are not secured may be discharged. You recieve the same benefit of discharge from debt as the person who files for bankrutpcy under chapter 7. 

One of the immediate benefits of filing an Orlando bankruptcy proceeding is that creditors must immediately cease and desist all collection efforts. This brings immediate peace to the person filing – the threatening letters, phone calls and other forms of legal harassment stop immediately. This is known as the automatic stay. It is illegal for a creditor to violate the automatic stay and the Orlando bankruptcy court can punish any creditor who does so by trying to collect on a debt after the bankruptcy petition is filed.

Let Us Make It Easy To Get a Fresh Start. Call Today For a Free Consultation! Contact Orlando Bankruptcy Lawyer: Jeff Badgley

As an experienced Orlando bankruptcy attorney, Jeff Badgley has over 20 years experience in helping Orlando and Central Florida residents with their legal matters. If you live in the Orlando, Altamonte Springs, Winter Springs, Winter Haven, Windermere, Ocoee, Winter Garden, Kissimmee, Clermont, Deltona, Oviedo, Winter Park or the Central Florida area and have any questions regarding an Orlando bankruptcy concern contact or call us at (866) 977-1544  for a FREE CONSULTATION.