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A Bankruptcy Law Firm in Wellington FL Helps People Get Out of Debt and Rebuild Credit

Filing for bankruptcy has a lasting impact on the person’s financial life, with both positive and negative effects. By the time a man or woman reaches the point where bankruptcy seems like the only option, the positive aspects outweigh the negative ones. A Bankruptcy Law Firm in Wellington FL helps the client decide which type is most appropriate, completes the paperwork and files it with the court.

Negative Effects

The filing has a negative impact on the person’s credit rating, and this problem can last for several years. This can make it difficult to obtain vehicle financing, a mortgage or even a credit card. Some landlords check credit history before renting apartments. Car insurance companies may do the same.

Chapter 7

Nevertheless, the two most common types of individual filing make life much easier in the financial realm after someone has been struggling. Chapter 7 requires giving up some assets, if there are any left, to pay down outstanding obligations.

Afterward, all the debts are discharged except for those that do not qualify under this program. Student loans and back child support are examples. A lawyer may be able to have a client’s student loans discharged if this person has become so physically or mentally disabled that working full-time is no longer an option.

Chapter 7 eliminates debt connected with credit cards, installment loans and medical bills. High credit card debt and exorbitant medical bills are two of the most common reasons people file under this program with a bankruptcy law firm in Wellington FL.

Chapter 13

Chapter 13 sets up a repayment arrangement that is affordable for this consumer. All debts are combined for one monthly payment that is significantly lower than the minimum monthly due on each one. Although the budget may be tight for the next few years, the individual has a way to get out of debt.

Credit Repair

Credit repair can begin as soon as the filing is complete. The person may be eligible to refinance his or her mortgage, for example. Prepaid credit cards and secured loans through a bank or credit union rebuild the credit score. Information about Law Offices of Sean I. Koplow can be viewed online.

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