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As there are several forms that bankruptcy can take, it is important to know which type is right for you. An experienced bankruptcy lawyer in Clermont can help to guide you through this process.

Chapter 7
Since Chapter 7 eliminates all discharged debts altogether and usually resolves in less than five months, it constitutes a new beginning.

Chapter 13
Unlike Chapter 7, which eliminates discharged debts, Chapter 13 involves a payment plan that can extend from 3 to 5 years. Next to Chapter 7, it is the most frequently seen form of bankruptcy. Your bankruptcy attorney in Clermont may recommend Chapter 13 if your home is under foreclosure proceedings, as these proceedings may be halted through this process. All mortgage payments due during the 3-5 year payment plan must be made in a timely manner. Second mortgages may be removed under Chapter 13 if the home has lost sufficient value that the holder of the second mortgage would not benefit by foreclosure. In such a case, you would keep your home. If you are in a high-income tax bracket and have not passed the means test, if you have filed for Chapter 7 within the past 8 years or if you have many valuable possessions, your attorney may recommend Chapter 13 based on his or her analysis of your circumstances.

Credit counseling
Credit counseling is required both before and after you file. Certification lasts for six months. Both of these courses can be found online and range in duration from between 1-2 hours. You must finish the first course by the day before you file, or risk having the case dismissed. The second course can be taken shortly after you file, but it must be finished within 45 days of your court hearing.

Seek guidance
Having to file for bankruptcy can be a difficult and painful process. For help, call Merideth Nagel, P.A., your bankruptcy lawyer in Clermont at 352-394-7408 today.

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