Clermont is one of the fastest-growing cities in Florida. The quality of life makes Clermont a prime destination for those looking to settle in Central Florida. However, if the rising cost of living leaves you struggling to pay your bills and increasing debt with no way out, you may need to file for bankruptcy. An experienced Clermont bankruptcy attorney can fight for you to ensure you start with a clean slate after filing. Learn about the process for filing bankruptcy in Clermont and throughout Central Florida below.
When Should You Consider Filing for Bankruptcy?
Consider filing for bankruptcy if you believe there is no way out of your current debt situation. When you cannot keep up with your monthly bills, you are several months behind on mortgage or car payments, and collectors call daily, you may want to speak with a bankruptcy attorney to see if it could be a solution.
How Does Bankruptcy Work?
Bankruptcy helps individuals manage their debts by seeking to undo contracts with creditors such as mortgage lenders, credit card companies, and medical bill collectors to cancel or reduce debts when you cannot pay them back. There are two primary bankruptcy forms for individuals: Chapter 7 and Chapter 13. These determine how your property and possessions are handled after filing.
How Long Does the Bankruptcy Process Take in Florida?
The actual process of filing for bankruptcy can take between one to six months. However, the effects can last several years, as your credit score will be impacted, and you may need to make monthly payments for three to five years if you file for Chapter 13.
How to Declare Bankruptcy
- Inventory assets, including current debts and the value of your property and possessions.
- Speak with an experienced Clermont bankruptcy attorney to determine which chapter to file.
- File bankruptcy petition with the US Middle Florida bankruptcy court.
- Submit proper paperwork with your petition, including income reports and creditor claims.
- A bankruptcy trustee is assigned to you by the court.
- Determination of dischargeable and nondischargeable debts.
- Meeting of the Creditors (341 Meeting). Typically happens within 40 days of filing.
- Confirmation of eligibility.
What Happens After You File for Bankruptcy?
You will work with your bankruptcy attorney and assigned bankruptcy trustee to determine dischargeable debts (meaning the debts you would not be responsible for). Your assets may be sold to pay off nondischargeable debts if you file for Chapter 7. If filing Chapter 13 bankruptcy, you will also establish your payment plan. After you file for bankruptcy, creditors cannot attempt to collect debts or sue you. All collection efforts will stop, and creditors must go through your attorney to make claims with the bankruptcy court. You will also be required to take a credit counseling class and show a certificate of completion before the bankruptcy is finalized.
Cressman Law: Clermont Bankruptcy Attorney
An experienced Clermont bankruptcy attorney, such as Mark P. Cressman, can sit down with you, listen to your situation, and make suggestions for you to follow the proper legal path. You should never try to handle a bankruptcy case on your own. If you are overwhelmed by harassing telephone calls from debt collectors, we can help you. Schedule your free consultation online or by telephone at 407-874-5527.
“We help our clients get the benefit of a fresh start and get on with the business of living as opposed to living and working for the benefit of the credit card companies and corporations who have been bailed out time and again by Washington, DC.” —Mark P. Cressman.