Q. If I file for bankruptcy in Florida will the creditors and collection agencies keep calling me?
A. No filing for bankruptcy puts and end to the harassing calls and letters from all debt collectors.

Q. If I file for bankruptcy in Florida will I only be able to pay cash to buy things and never get credit again?
A. No filing for bankruptcy eliminates the debts. Lenders and credit card companies look at your income to debt ratios to determine credit worthiness. Once you are relieved of your old debts you are starting fresh and will be seen as a better risk. Many client report to us that offers for new credit cards arrived in the mail almost immediately after we filed for bankruptcy on their behalf.

Q. If I file for bankruptcy in Florida will this be reported to my employer?
A. No it is unlikely that anyone you know will ever find out unless you specifically tell them.

Q. My biggest bills are related to back taxes that I owe, can bankruptcy laws help me?
A. One of the most common misconceptions is that you can never be relieved of any Federal taxes you may owe. In many cases we are able to eliminate all back taxes.

Q. I want to file for bankruptcy but I can't afford to hire an attorney, what should I do?
A. Many law firms will take a deposit of as little as $50.00 to get the paperwork started.

Q. I filed for bankruptcy years ago are there exceptions to the once in a lifetime bankruptcy filing that we are allowed?
A. This is another common misconception about bankruptcy laws. You cannot file for bankruptcy more than once in seven years.

Q. Won't filing for bankruptcy ruin my credit for the next several years?
A. No, not paying your bills is ruining your credit. Filing for bankruptcy relieves the debts so that you are no longer required to pay those bills, consequently your credit is much more likely to improve.

Q. I've heard that the bankruptcy laws have changed making it impossible for most people to file for bankruptcy, is this true?
A. No not at all; in fact about 80% of our clients would still qualify to file for bankruptcy under the new laws.

Please click here if you would like to have a free, no cost or obligation consultation with a Florida bankruptcy attorney.

Six options to consider.

1. Don't do anything. Paralysis is a common condition. While ignoring the situation may offer temporary solace, it is not a viable long-term solution. Even if you're able to continue making monthly payments and maintain your good credit, your debt will continue to balloon. Mostly likely, sooner than later, you will have to seriously consider one of the next five choices.

2. Immediate Re-payment. If you have assets such as stocks, IRAs, 401k plans, vacation property, or ample savings, for example, you may choose to liquidate the asset in order to pay your debt. Some people even choose to borrow from friends or family. The advantage of this approach is that you may maintain your good credit. However, there are many disadvantages to consider. Prematurely liquidating an asset may trigger penalties and loss of income. Borrowing from friends or family doesn't make the debt go away; rather, it simply transfers it from one creditor to another. This approach could complicate your personal relationships.

3. Consolidate Your Debt. There are a couple of approaches to consolidating debt. Credit card companies suggest transferring debt from multiple cards to one card at a lower interest rate. This is in effect transferring unsecured debt to another unsecured debt instrument with no tax benefits. However, homeowners with equity may find it more advantageous to take out a home equity loan. In the process, unsecured debt becomes secured and therefore tax deductible. You may maintain your good credit while lowering your payments, however, you are placing your home as security for the loan. And essentially you are merely trading unsecured debt for secured debt, while creating the risk of losing your home to a foreclosure if you encounter trouble paying back the loan.

4. Credit Counseling. Credit counseling services work with creditors on your behalf to lower the interest rate you pay on unsecured debt. This may in turn lower your monthly payment, but does not lower the amount owed, nor does it stop the ballooning of your debt. You make one payment to the credit counseling company and they in turn pay your creditors. For this service, you will pay them a monthly service fee. While this option sounds like a reasonable solution, and for your situation it may very well be, many credit counseling companies have an inherent conflict of interest in representing you - they are owned by, or collect fees from credit card companies. The process may help you avoid bankruptcy but your credit will be severely impacted while in the program, since many lenders refuse to extend credit to people in these programs. Pay-offs typically take years and many people never see it through to the end.

5. Debt Negotiation. The strategy here is to negotiate your principal debt down and reduce your pay-off balances significantly. The advantage is that you may get out of debt in a relatively short time for less than you originally owed and you can avoid bankruptcy. However, you should understand that this option is complicated and brings with it the possibility of lawsuits. Debt Negotiation will compromise your credit in the short term, and you may have to pay taxes on the forgiven debt. However, for individuals or families in hardship, the benefits often outweigh the risks. While there are non-law firms that provide debt-negotiation services, the process often requires the additional leverage and credibility only a law firm can exert with large banking institutions.

6. Bankruptcy. This is a federal court process designed to help consumers and businesses eliminate debts or repay them under the protection of the bankruptcy court. Bankruptcy can generally be described as a "liquidation" or "reorganization" of debt. While filing for bankruptcy is unfortunately seen as a failure in our culture (wrongfully so), the founding fathers of our country understood the need to give individuals, families and businesses the protection of federal law to enable recovery from financial hardship. While no one "wants" to declare bankruptcy, bankruptcy is not fatal. It is in fact the financial-wellness tool of last resort. While a bankruptcy may remain on your credit report for seven to ten years, and may impact the short-term acquisition of credit, the vast majority of individuals and businesses emerge stronger at the end of the process. Using appropriate strategies, credit may be rebuilt within a year or two enabling the purchase of cars, homes and other life necessities. There are several types of bankruptcy proceedings that you can read about below.