Sarasota Bankruptcy Lawyer
Understanding Bankruptcy in Sarasota
Debt can spiral out of control due to unexpected medical expenses, job loss, or financial mismanagement. Bankruptcy provides a legal solution for individuals and businesses to eliminate or restructure their debt and regain financial stability. A Sarasota bankruptcy lawyer can help you understand the bankruptcy process and determine the best path toward financial relief.
Common Types of Bankruptcy in Sarasota
Individuals in Sarasota most commonly file for:
Chapter 7 Bankruptcy
Chapter 7, or liquidation bankruptcy, allows debtors to discharge most unsecured debts, including medical bills and credit card balances. Florida law provides exemptions that protect essential assets, so many people can keep their homes and vehicles while eliminating overwhelming debt.
Chapter 13 Bankruptcy
Chapter 13 is a reorganization bankruptcy that allows individuals to develop a court-approved repayment plan over three to five years. This option is ideal for those who have a steady income and want to prevent foreclosure or repossession while catching up on past-due payments.
Common Bankruptcy Challenges
The bankruptcy process involves several challenges, such as:
- Qualifying for Chapter 7 – The means test determines eligibility based on income.
- Protecting Assets – Florida’s exemptions can help, but some assets may still be at risk.
- Managing Secured Debts – Mortgages and car loans require ongoing payments if you want to keep the property.
- Dealing with Non-Dischargeable Debt – Some obligations, such as student loans and child support, cannot be discharged.
Debt Relief and Credit Repair Options
While bankruptcy can provide significant debt relief, alternative solutions such as debt settlement, consolidation, and credit counseling may also be viable. After bankruptcy, rebuilding credit is possible by:
- Making timely payments on remaining or new obligations
- Using a secured credit card responsibly
- Monitoring credit reports for inaccuracies and disputes
Foreclosure and Bankruptcy Protection
Homeowners in Sarasota facing foreclosure can use Chapter 13 bankruptcy to halt proceedings and set up a manageable repayment plan. Chapter 7 can also provide temporary foreclosure relief through an automatic stay, giving homeowners time to explore their options.
How Nowack & Olson, PLLC Can Help
Nowack & Olson, PLLC offers experienced bankruptcy representation for Sarasota residents, providing tailored legal solutions to help individuals and businesses eliminate or restructure their debt.
Bankruptcy FAQ
Will bankruptcy erase all my debts?
Most unsecured debts, such as medical bills and credit card balances, can be discharged. However, student loans, child support, and some tax debts typically remain.
Can bankruptcy stop wage garnishment?
Yes, an automatic stay goes into effect immediately after filing, preventing wage garnishment, foreclosure, and collection actions.
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 remains for 7 years. However, financial recovery can begin sooner.
Will I lose my home if I file for bankruptcy?
Florida’s homestead exemption protects primary residences in most cases, especially for Chapter 13 filers.
Can creditors still contact me after filing for bankruptcy?
No, once bankruptcy is filed, creditors must stop all collection efforts, including phone calls, lawsuits, and wage garnishments.
Bankruptcy Lawyers Serving Throughout Sarasota
- Siesta Key
- Palmer Ranch
- Downtown Sarasota
- Gulf Gate
- The Meadows
- Lakewood Ranch
- Southgate
- St. Armands
- Longboat Key
- Laurel Park
Contact a Sarasota Bankruptcy Attorney Today
If you are overwhelmed by debt and need financial relief, Nowack & Olson, PLLC can help. Contact an experienced Sarasota bankruptcy attorney today to explore your options and take the first step toward financial freedom.
