Residing in Pensacola, Florida, can be accompanied by unforeseen financial difficulties. Whether due to a loss of employment, medical crisis, or increasing credit card debt, numerous residents find themselves in a position where they are no longer able to maintain their financial responsibilities. If you’re thinking about filing bankruptcy, it’s important to know when it might be the best option for your financial woes.
Signs You Should Consider Bankruptcy
Overwhelming Debt
When debts have piled up to the point that catching up seems out of the question, bankruptcy could be an alternative. If you are paying bills with credit cards or borrowing to pay off older debts, bankruptcy can discharge or lessen these unsustainable debts.
Threats of Legal Action
Are creditors threatening lawsuits, wage garnishment, or foreclosure? If creditors are filing lawsuits against you, bankruptcy can give you relief by putting these proceedings on hold through an automatic stay. Bankruptcy allows you to have time to get back on your feet without fear of the immediate legal ramifications.
Inability to Make Minimum Payments
If you’re unable to make even the minimum monthly payments on your debt, bankruptcy can help discharge most unsecured debt (Chapter 7) or consolidate it into a manageable repayment plan (Chapter 13).
Medical Expenses
Unexpected medical bills can quickly spiral out of control. If you’re facing substantial medical expenses and have no way to pay them off, bankruptcy may help relieve this financial burden.
Stress and Anxiety Over Debt
The emotional toll of being overwhelmed by debt can affect your physical health, relationships, and overall well-being. Bankruptcy offers a legal path to gain control over your financial situation, which can provide peace of mind and help improve your quality of life.
How Bankruptcy Can Help Pensacola Residents?
Bankruptcy provides a legal way to eliminate or reduce debts. The two main types of bankruptcy for individuals in Pensacola are:
- Chapter 7: Discharges unsecured debts such as credit card debt, hospital bills, and personal loans. It’s perfect for individuals with little or no assets and can qualify based on income.
- Chapter 13: A reorganization plan that lets you retain your property and settle your debts through a three-to-five-year plan. It’s most suitable for individuals with a steady income but too much debt.
How Does Bruner Wright Pa Assist?
Our attorneys at Bruner Wright PA are dedicated to assisting Pensacola citizens with understanding their available bankruptcy options. Our skilled attorneys will walk you through each part of the bankruptcy process, starting with assessing your financial situation through filing the petition for bankruptcy. We will keep you informed regarding the possible effects and advantages of bankruptcy so you can make the best decision about your future.
This post was written by Trey Wright, a Pensacola Bankruptcy Lawyer! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.
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