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.
You will have the chance to catch up on mortgage payments, although they will not be erased. You will also continue to owe any liens on your property. This allows you time to make up the missed payments. If a creditor is trying to garnishee your wages, it will block that from happening.
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.
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.
A Chapter Thirteen is referred to as an adjustment of debt. You must earn enough money to pay both living expenses and the monthly payments set up by the federal judge handling your case. Payments are spaced out, usually over a five year period.
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.
You will have the chance to catch up on mortgage payments, although they will not be erased. You will also continue to owe any liens on your property. This allows you time to make up the missed payments. If a creditor is trying to garnishee your wages, it will block that from happening.
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.
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.
A Chapter Thirteen is referred to as an adjustment of debt. You must earn enough money to pay both living expenses and the monthly payments set up by the federal judge handling your case. Payments are spaced out, usually over a five year period.
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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