Are you buried in debt, avoiding calls from collection agencies, using credit cards to pay for necessities, or making minimum payments and getting further behind each month? While bankruptcy is not an instant or easy fix, it can often provide Tampa residents with the relief they need to get their finances under control and possibly even avoid foreclosure on their homes.

stressed about money

It’s important to understand and prepare for the negative effects of bankruptcy. Two of the most burdensome consequences you can expect to face when filing bankruptcy include:

  • Poor credit. Filing for bankruptcy lowers your credit score and remains on your credit report for seven years. During this time you may find it very difficult to obtain financing or open new credit cards and you may notice that when financing is offered, the interest rates are much higher than average.
  • Repossession. When you file for bankruptcy, lenders have the right to repossess property for which they were not fully paid. This means your vehicles, home, and anything else on lease or purchased with financing is at risk of repossession or foreclosure.

Despite the negative connotations, filing bankruptcy is often the only solution and can provide much-needed relief from unmanageable financial pressure. Working with the right attorney, you may be able to save your home from foreclosure by refinancing or reorganizing to catch up on mortgage payments. Because it can be difficult to get approved for rental properties after filing bankruptcy, it’s important to explore every avenue that may allow you to keep your home.

Our legal team at Clark & Washington, P.C. is eager to help you understand how bankruptcy works, how it may help you and your family, and how to overcome and manage the negative effects of filing for bankruptcy. They understand that each case is personal and each family’s circumstances are unique and want to develop a strategic plan that is customized to your needs. If you are afraid to answer the phone when the debt collectors call, let us help. Call today to schedule an appointment.

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