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How much debt do I need to file for bankruptcy in Miami or Ft. Lauderdale, and what will it do to my credit?

How much debt do I need to file for bankruptcy in Miami or Ft. Lauderdale, and what will it do to my credit?

A question I get a lot is how much debt do I need to make it worth it to file for bankruptcy.  My answer is, it depends on the situation you are in.  If you owe $10,000, but you make $20,000 per year, filing for bankruptcy in Miami or Ft. Lauderdale is probably a good idea. You will never be able to make even the minimal monthly payments to live.  However, if you owe $10,000 and make $150,000 per year, filing a bankruptcy in Miami or Ft. Lauderdale is probably not a great idea.  Filing for bankruptcy in Miami or Ft. Lauderdale should always be a last resort.  If you are about to be sued or are being sued, it is the time to immediately see a bankruptcy attorney in Miami or Ft. Lauderdale.  Normally there is no fee for an initial consultation.  So seeing a bankruptcy attorney in Miami or Ft. Lauderdale costs you nothing, but you will be able to get really good advice that can save you a lot of money by seeing a qualified and experienced bankruptcy attorney in Miami or Ft. Lauderdale.  The goal is to allow you to have enough money to live more comfortably and to afford the things you need rather than having to repay your creditors.

Another question I get a lot is what will bankruptcy do to my credit.  If you are seeing a bankruptcy attorney in Miami or Ft. Lauderdale to discuss your financial situation, your credit is already bad or it will soon be bad.  Even if you are currently on your minimum payments on your credit cards or you have medical bills that report to the credit reporting agencies, your credit will keep going down every month.  A credit report is like a report card.  You may have a bunch of C’s, D’s or F’s on your credit report.  A bankruptcy filed in Miami or Ft. Lauderdale is like another F.  However, after the bankruptcy is filed, there is a line that goes on the bottom of your credit report.  That shows where you got your fresh start.  After the bankruptcy is filed, you must re-establish your credit.  It might take a couple of years, but if you do it correctly, your credit score should be in the mid 700’s within those two years.  There is an app you can get on your phone.  It’s called Credit Karma.  That app will tell you your credit score.  It will also give you credit card companies who are giving out credit cards and will tell you your chances of being accepted.  You don’t need that much credit to re-establish credit.  Once you get your credit card, you will need to make a charge every month.  It doesn’t matter how much you spend.  But you must never ever pay less than the whole amount when you get the bill.  In fact, if you can, pay the bill early.  If this is done every month, your credit will come back very fast.  The only way you can re-establish your credit is when you get to a point where you owe zero.  The fastest way to do that is by filing bankruptcy.  After the bankruptcy is discharged (the end result of filing bankruptcy), your creditors will only look at a couple of things to determine whether you are creditworthy.  They will look at your credit score, and your ability to repay the money you are trying to borrow from them.  Once you get to the point where your credit score is satisfactory, you will be able to buy what you want at a good interest rate as long as you can afford it.  Buying a house is a different story.  The home lender will not approve a loan after you have filed for bankruptcy for two years after you have received your discharge.  During this time, you should be saving as much money as you can for the down payment on the new house.  If you can come up with 20% of the purchase price, you will have better odds of getting approved on a home loan.  A care loan is different.  You can buy a new car after your discharge once your credit has been rebuilt, and you can afford the new loan.  You should be able to buy or lease a car at a good interest rate because the bankruptcy has made it easier for you to repay the loan you will be getting to buy your new or used car. 

The bottom line is that you lose nothing by getting a free initial consultation to file a bankruptcy in Miami or Ft. Lauderdale.  Also, there is really no downside by filing for bankruptcy.  Rather than struggle to pay your monthly credit card bills or your medical bills, you can focus on paying for things you need to live a more comfortable life.