When someone is mired in debt to the extent that there is no other way out of it, declaring bankruptcy is an option. This is a legal process to erase the debt and make a fresh start. As a prominent Jacksonville FL Bankruptcy Attorney will explain, one thing it will do is immediately stop all creditors from harassing you.
Debts can be permanently discharged. Your utility services, gas and electric, will be turned back on and foreclosure on your home will be stopped. If your car is in danger of being repossessed, that will stop also. If you consider a debt to be fraudulent, you will have a chance to dispute its validity.
Mortgage payments on your home and liens against your property cannot be discharged. However, you will be given time to catch up on what is owed. You may have been threatened with garnishment of your wages. That will not be allowed once you file for bankruptcy.
Those disturbing letters that demand payment of bills will no longer be delivered. Creditors will no longer be allowed to harass you on the phone. Regardless of circumstances there are bills that must be paid. For example, educational loans, child support, criminal fines and some taxes must be paid.
There are two types of bankruptcy available for a non-business situation. You are required to give up certain possessions to be sold in a chapter seven. The possessions are sold and the money divided up among the creditors. Some possessions are exempt.
In a Chapter Thirteen, called a debt adjustment, a plan is set up to pay off debt over time. To be eligible to file this type, you must have sufficient income to pay living expenses, plus, make payments on the debt. Usually a five-year period is allowed.
A bankruptcy case is heard in federal court. The judge must approve a petition filed for a chapter thirteen. During the repayment period no interest can be added to the debt. All collection efforts on the part of your creditors will be stopped immediately.
Debts can be permanently discharged. Your utility services, gas and electric, will be turned back on and foreclosure on your home will be stopped. If your car is in danger of being repossessed, that will stop also. If you consider a debt to be fraudulent, you will have a chance to dispute its validity.
Mortgage payments on your home and liens against your property cannot be discharged. However, you will be given time to catch up on what is owed. You may have been threatened with garnishment of your wages. That will not be allowed once you file for bankruptcy.
Those disturbing letters that demand payment of bills will no longer be delivered. Creditors will no longer be allowed to harass you on the phone. Regardless of circumstances there are bills that must be paid. For example, educational loans, child support, criminal fines and some taxes must be paid.
There are two types of bankruptcy available for a non-business situation. You are required to give up certain possessions to be sold in a chapter seven. The possessions are sold and the money divided up among the creditors. Some possessions are exempt.
In a Chapter Thirteen, called a debt adjustment, a plan is set up to pay off debt over time. To be eligible to file this type, you must have sufficient income to pay living expenses, plus, make payments on the debt. Usually a five-year period is allowed.
A bankruptcy case is heard in federal court. The judge must approve a petition filed for a chapter thirteen. During the repayment period no interest can be added to the debt. All collection efforts on the part of your creditors will be stopped immediately.
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