There are many questions people ask when it comes to bankruptcy. Often, they want to know how long bankruptcy will be reported on their credit reports. Generally, the period in Florida is up to 10 years (7 years with Chapter 13 bankruptcy). This is important because creditors will report your bad credit for up to 10 years. With the bankruptcy listed, you are ensuring that anyone who looks up your credit score will see that you have declared bankruptcy in the past and are trying to get out of debt.
People also worry whether or not they will qualify for bankruptcy. In Florida, you do not have to qualify for anything, although with Chapter 13 cases the court may sometimes feel that your plan is not feasible, denying it if you do not have enough money or income to make it work.
You also may wonder about the different types of bankruptcy. Chapter 13 has been mentioned, but there is also Chapter 7 bankruptcy. When most people think of bankruptcy, they think of Chapter 7. This is a “straight” bankruptcy where the court forgives the individual all of their dischargeable debts. You might also be allowed to keep a credit card or two, which is important as without one it is almost impossible to rent a car, book airline tickets, or be prepared for some types of emergencies.
Chapter 13 bankruptcy, on the other hand, is often used to save your home from foreclosure. It lasts from three to five years, and each month you make a regular payment as well as an additional amount to help catch up on your mortgage. This allows you to file a “plan” with the court that shows how much money you will be paying and how long it will take you to catch up. If the plan is approved, the bank or mortgage company is then forbidden from taking your home. Then, once you are caught up, you will be able to return to paying your mortgage as you did before.
In order to determine which type of bankruptcy is the most appropriate for your case, contact the Law Office of Debra G. Simms as we will be able to assess your situation and help you get out of debt as quickly and efficiently as possible.
