An affordable Tampa bankruptcy attorney at Andrew R. Lynch, P.C. has helped many people in this community file for bankruptcy. Especially with such a tough year financially due to COVID-19, more people have considered filing for bankruptcy than perhaps ever before. And we can understand that in such financial hardships, hiring an attorney that is affordable can make all the difference. We are happy to assess your situation to confirm whether bankruptcy is right for you, and then walk you through each step thereafter.
Bankruptcy Counseling Session
The bankruptcy process entails two credit counseling sessions, which are mandatory, and must be done through an approved counseling agency. The initial round of counseling occurs prior to filing bankruptcy paperwork with the courts. At the session, a counselor will talk with you about your budget, and discuss the pros and cons of bankruptcy. Your counselor can provide alternatives to bankruptcy to see if those suit your needs better.
Filing for Bankruptcy
After the counseling sessions, you will then file your bankruptcy request with the court. A bankruptcy status will appear on your credit report, and creditors you owe money to must halt contacting you or making efforts to collect on the debt. This is called an “automatic stay”, where creditors are not permitted to contact you the moment the bankruptcy paperwork is filed.
Chapter 7 or Chapter 13 Bankruptcy
For most people, they will be filing for either Chapter 13 or Chapter 7 bankruptcy. Depending on that choice, the debtor may have to liquidate assets as a way to pay back creditors. Or, the debtor is set up with a repayment plan over the course of 3-5 years, where they pay back a portion or all of their debts. If you file for Chapter 7 and you do not own assets of significant value, this would be referred to as a “No Asset Case”, and the court would not sell your property.
However, do keep in mind that if you have debts you wish to keep, such as a vehicle or home, you may have to continue making payments on them. Let your bankruptcy lawyer Tampa, FL residents trust at Andrew R. Lynch, P.C. know if you have any secured assets that you wish to keep.
Discharge of Debt and Rebuilding Credit
After the above steps, eligible debts become discharged and your obligation to pay them are removed. If you are someone who is losing sleep or gets incessant calls from creditors and cannot meet minimum payments, then filing for bankruptcy may be what is needed to get you on a path to long-term financial stability. But remember that after your debts are discharged, it is important that you have the skills and support to rebuild your credit.
Call Andrew R. Lynch, P.C. to speak with an affordable bankruptcy attorney in Tampa today about whether bankruptcy may be in your best interest.