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.
This legal procedure will relieve you of many of your debts. If your gas and electricity are turned off, this will require them to be restored. If your home is threatened with foreclosure, that will be delayed. If you are behind on car payments your vehicle cannot be repossessed.
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.
The threatening letters demanding payment of debts will stop. No creditors will be permitted to contact you on the phone. There are, however, some debts that cannot be discharged. These include child support, student loans, criminal fines and some taxes.
The widely used Chapter Seven is known as a liquidation. Property you own is sold and the profits are given to your creditors. Certain possessions are exempt from being sold.
A Chapter Thirteen differs in that debt is not erased. Instead, a plan is arranged by a federal judge for repayment. No interest can be added to the bills from then on. You must meet certain requirements to file this type. Your income must be sufficiently high to cover living expenses plus payments on what is owed.
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.
This legal procedure will relieve you of many of your debts. If your gas and electricity are turned off, this will require them to be restored. If your home is threatened with foreclosure, that will be delayed. If you are behind on car payments your vehicle cannot be repossessed.
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.
The threatening letters demanding payment of debts will stop. No creditors will be permitted to contact you on the phone. There are, however, some debts that cannot be discharged. These include child support, student loans, criminal fines and some taxes.
The widely used Chapter Seven is known as a liquidation. Property you own is sold and the profits are given to your creditors. Certain possessions are exempt from being sold.
A Chapter Thirteen differs in that debt is not erased. Instead, a plan is arranged by a federal judge for repayment. No interest can be added to the bills from then on. You must meet certain requirements to file this type. Your income must be sufficiently high to cover living expenses plus payments on what is owed.
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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