More and more, it seems like bankruptcy is becoming a much more attractive option for those in Miami that are in desperate need of debt relief. This assumption is no doubt in response to the high number of personal bankruptcy filings seen in recent years. Indeed, data shared by the United States Courts shows that there were 793,932 non-business bankruptcy filings in 2016 alone. In many cases, bankruptcy may be one’s best option. Yet is it for you?
As you sit mired in debt, having many of your liabilities discharged may seem like a welcome blessing. Yet keep in mind that you must qualify for a debt discharge through a Chapter 7 case. If you do not, you will still have to repay many of those debts if you choose to file under Chapter 13; the only difference is that they will be repaid over an extended period of time.
Your decision to seek bankruptcy protection now should be heavily influenced by a number of factors. These may include:
- Whether you will need to seek financing in the near future: Filing for bankruptcy does impact your credit profile. It may take 3-4 years before you are able to qualify for traditional financing again.
- If you are ready for the emotional toll it will take: Bankruptcy is an involved process, one in which you will be required to go to several court dates and face many of your creditors.
- Whether you have the money needed to file: There are costs associated with filing for bankruptcy. Funds that could repay your creditors may end up going towards your case.
If, after considering these factors, you may want to try to work with creditors to renegotiate your debts. They may be more willing to work with you if it offers an alternative to bankruptcy.