Partial Bankruptcy In Florida
Most people drowning in credit card debt, have lost their jobs ,are unable to pay their bills, or have fallen behind in mortgage payments consider filing for bankruptcy. But a significant number of people view filing for bankruptcy as an extreme move, and wonder whether it is possible to file for partial bankruptcy. You may think this way too if you are only dealing with a single problem debt or your situation is temporary. The truth is you cannot file for partial bankruptcy. In fact, all your debts and assets are affected when you file for bankruptcy.
A Chapter 13 Bankruptcy Is Less-Aggressive
You have to provide the bankruptcy court with a complete petition when you file for bankruptcy to avoid having your case dismissed. Fortunately, you still have certain legal options that will allow you to protect some of your assets from liquidation when you file for bankruptcy. You can do this by filing for a Chapter 13 bankruptcy. A Chapter 13 bankruptcy permits you to retain ownership of most of your assets but you have to commit to a payment plan ordered by a court. It is not as drastic as a Chapter 7 bankruptcy which involves liquidating most of your assets so that the proceeds can be given to your creditors.
But unlike bankruptcies where your loan is discharged a few months after you file, a Chapter 13 bankruptcy forces you to make a long-term commitment to the bankruptcy court. You have to stick to a 3 to 5 year repayment plan that will be managed by the court. Failure to stick to the plan can result in severe penalties.
Negotiating Total Debt Down
People that are struggling with a single debt but are generally not in a bad place financially can choose negotiating their total debt down with their creditors instead of filing for bankruptcy. Negotiating debt or debt settlement is a debt relief method where debtors bargain with their creditors. Debt settlement can reduce the total level of debt and reduce the interest rate applied. Most creditors prefer to accept a discounted repayment to close out an account rather than get little or nothing when a debtor files for bankruptcy. The following are some of the debts included in the Florida Debt Settlement program:
- Signature loans
- Old repossessions
- Credit cards
- Personal lines of credit
- Private student loans in default
- Old judgments
- Other unsecured debts
Other Debt Relief Options
People that are not willing to file bankruptcy can consider the following Debt Relief Options:
- Credit counseling: Credit counseling allows you to pay a monthly sum to a debt relief firm which then uses those funds to pay your creditors. You still end up paying the entire amount you owe plus interest.
- Debt Consolidation Loan: A debt consolidation loan allows you to combine all debts into a single lower rate loan.
- Make minimum monthly payments: You get to pay low monthly amounts to keep the loan current but interest rates range from 15% to 30%.