Pensacola Bankruptcy Attorneys

Pursuing Options to Help Manage Your Debts

Changes to your financial situation can make it difficult to pay your debts. As bills and expenses pile up, you might become overwhelmed with your financial burdens and struggle to keep up with your finances. If you need help managing your debts, you might consider filing for Chapter 7 or Chapter 13 bankruptcy. By pursuing either of these avenues, you can eliminate some of your debts or make adjusted payments over a few years, allowing you to get a fresh financial start. Filing for bankruptcy is a complicated legal process that can impact your future in various ways. That is why it is a good idea to turn to an attorney who can help you understand your options and guide you through your case.

The Watson Firm, PLLC provides knowledge and skilled legal counsel to those seeking a clean slate concerning their finances. Our Pensacola bankruptcy lawyers can explain the requirements for filing for either Chapter 7 or Chapter 13 bankruptcy, discuss your legal obligations, and assist in deciding how to proceed. We genuinely care about protecting your finances and future, which is why we will deliver personalized attention and pursue options to help you achieve your financial goals.

To speak with a bankruptcy attorney in Pensacola, contact us at (850) 607-2929. We offer a free initial consultation.

What Are Your Different Bankruptcy Options?

In general, bankruptcy offers relief to those struggling with their finances. Depending on the type filed for, it allows certain debts to be discharged or reduced, making financial obligations more manageable.

Typically, individuals pursuing bankruptcy will file for either Chapter 7 or Chapter 13. While both help manage debt, they differ in significant ways.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also referred to as liquidation bankruptcy. That is because you must sell some of your non-exempt assets and use the proceeds to pay down debts.

Additionally, with Chapter 7, some unsecured debts (those not backed by collateral) may be discharged, meaning you are no longer liable for them.

That said, some debts cannot be or are exempt from discharge. These include, but are not limited to:

  • Retirement accounts,
  • Mortgages,
  • Car loans,
  • Student loans,
  • Child support, and
  • Taxes.

To be eligible for Chapter 7 bankruptcy, your monthly income must be below the median level in your state. If it is above that amount, you must pass a means test to qualify for relief.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows you to reorganize your debts to make payments more manageable. Rather than your assets being sold or your debts being immediately discharged, you work with your creditors to develop a repayment plan so you can pay down all or part of your debts.

The repayment plan is in place for 3 to 5 years. Certain debts remaining after this period may be discharged, provided you fulfill your obligations.

To be eligible for Chapter 13 bankruptcy, you must have a regular income. Additionally, your secured and unsecured debts must be below a certain threshold.

Our Pensacola bankruptcy lawyers can discuss in detail the particulars of your different debt relief options. We will assess your eligibility and help you make a decision that’s right for your situation.

What Happens After You File for Bankruptcy?

Whether Chapter 7 or Chapter 13, filing for bankruptcy has upsides and downsides.

Some of the positive aspects of bankruptcy include, but are not limited to:

  • You get your finances in order
  • Some of your debts may be reduced or discharged
  • Filing triggers an automatic stay, which means creditors can’t contact you about debts

A couple of the negatives associated with bankruptcy include, but are not limited to:

  • Adverse effect on your credit score, making it hard to get approved for future credit
    • Chapter 7 stays on your credit report for up to 10 years
    • Chapter 13 remains for up to 7 years
  • Difficulty pursuing a career in certain industries, such as financial services
  • Loss of some assets

If you’re thinking about filing for bankruptcy, speak with an attorney before moving forward. You have a lot to consider. A lawyer can explain the effects of filing and avenues you can explore to mitigate some of the impacts.

Schedule a Free Consultation

At The Watson Firm, PLLC, we understand that filing for bankruptcy can be an overwhelming experience. We are here to help relieve some of your stress by taking care of the details of your case, such as preparing and submitting your petition, gathering your financial records, and developing a proposed repayment plan for your debts.

Discuss your case with our Pensacola bankruptcy attorneys by calling (850) 607-2929 or submitting an online contact form.