Clearwater Bankruptcy Lawyer
Bankruptcy and Debt Relief in Clearwater
Debt can quickly become overwhelming due to unexpected life events, such as medical bills, job loss, or mounting credit card balances. Bankruptcy offers a legal solution for individuals and businesses struggling with financial obligations. A Clearwater bankruptcy lawyer can help determine the best approach, whether that involves Chapter 7, Chapter 13, or alternative debt relief options.
Types of Bankruptcy in Florida
The two primary bankruptcy options for individuals in Clearwater are:
Chapter 7 Bankruptcy
Chapter 7, also known as liquidation bankruptcy, allows eligible individuals to discharge most unsecured debts, including credit card debt, personal loans, and medical bills. Florida law provides exemptions that help many filers keep essential assets such as their home and car.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy restructures debts into a court-approved repayment plan, allowing individuals to pay off obligations over three to five years. This option is ideal for those who have a steady income and want to prevent foreclosure or repossession.
Common Bankruptcy Challenges
Bankruptcy comes with certain legal and financial challenges, including:
- Passing the Chapter 7 Means Test – Income levels must meet eligibility requirements.
- Protecting Assets – Some assets may be at risk of liquidation.
- Managing Secured Debt – Mortgage and car loans may still require payments.
- Dealing with Non-Dischargeable Debt – Some debts, such as student loans and child support, cannot be eliminated.
Debt Relief and Credit Recovery
While bankruptcy can provide financial relief, other options such as debt consolidation or negotiated settlements may also be viable. After filing for bankruptcy, individuals can rebuild their credit by:
- Making consistent payments on remaining obligations
- Using a secured credit card to establish positive payment history
- Monitoring their credit reports to correct errors
Stopping Foreclosure Through Bankruptcy
Homeowners in Clearwater who are facing foreclosure can use Chapter 13 bankruptcy to halt proceedings and create a repayment plan to catch up on missed mortgage payments. Chapter 7 also provides temporary relief through an automatic stay.
How Nowack & Olson, PLLC Can Help
Nowack & Olson, PLLC offers experienced bankruptcy representation for Clearwater residents. Their legal team provides tailored financial solutions to help individuals and businesses eliminate or restructure debt.
Bankruptcy FAQ
Will bankruptcy discharge all my debts?
Most unsecured debts can be eliminated, but certain obligations, such as student loans, child support, and most taxes, typically remain.
Can bankruptcy stop wage garnishment?
Yes, filing for bankruptcy places an automatic stay on wage garnishments, creditor lawsuits, and foreclosure actions.
How long will bankruptcy affect my credit?
Chapter 7 remains on credit reports for 10 years, while Chapter 13 stays for 7 years. However, financial recovery can begin immediately.
Will I lose my house in bankruptcy?
Florida’s homestead exemption protects primary residences in most cases, especially in Chapter 13 filings.
Can creditors still contact me after I file for bankruptcy?
No, once bankruptcy is filed, an automatic stay prevents creditors from calling, sending collection notices, or pursuing legal action.
Bankruptcy Lawyers Serving Throughout Clearwater
- Countryside
- Island Estates
- Sand Key
- Feather Sound
- Coachman Ridge
- Del Oro Groves
- Harbor Oaks
- Clearwater Beach
- Morningside
- Imperial Cove
Consult a Clearwater Bankruptcy Attorney Today
If you are struggling with overwhelming debt, Nowack & Olson, PLLC can help. Contact an experienced Clearwater bankruptcy attorney today to discuss your options and start your journey toward financial recovery.
