Using Bankruptcy To Eliminate Debt

Facing debt is stressful. When an individual cannot pay his or her bills, it is not long before creditors begin their campaigns of harassment. Many see their bank accounts frozen or their wages garnished. Their home may be threatened with foreclosure. The experience quickly becomes overwhelming.

Zuniga Law can assist. Many have found that bankruptcy is the simplest and easiest means to stop creditors, eliminate their debts and keep their most valuable assets. Our firm, based in Boca Raton and practicing throughout southern Florida, is deeply experienced in helping individuals manage their finances. We work closely with our clients, offering knowledgeable guidance as they decide whether bankruptcy is the right solution for them.

The Advantages Of A Chapter 7 Filing

Chapter 7 bankruptcy is an option many pursue to establish firm financial footing. Also known as "liquidation bankruptcy," it entails that one's assets be sold off and the proceeds used to pay off one's debt. Once the process is complete, all remaining debt is forgiven.

It is important to note that, as soon as one files for Chapter 7, creditors are no longer able to contact individuals or make any demands. Furthermore, many assets — including a primary car, jewelry and the equity in a home — are exempt from liquidation. That is, individuals are able to keep these assets.

The Advantages Of A Chapter 13 Filing

Individuals with an established income who want to retain more of their assets than they could through liquidation bankruptcy often opt to file under Chapter 13. This type of bankruptcy resembles other forms of debt restructuring. Rather than selling off one's possessions, a court assesses one's debts and develops a financial plan that allows individuals to pay back their creditors over a period of several years.

How Do I Know Which Option Is Best For Me?

Eligibility varies; there are different criteria one must meet to file for different types of bankruptcy. It is important to consult with an attorney and see whether Chapter 7 or Chapter 13 is the appropriate solution for your financial situation.

If you would like to speak with a lawyer, call Zuniga Law at 561-544-7339. You can also reach us through our online contact form. Initial consultations are always free.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.