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.
In legal terminology it will discharge all debts. It will restore utility service, stop foreclosure on a home and prevent your car from being repossessed. If any of your creditors have fraudulent claims against you, this gives you the opportunity to challenge them.
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 demanding letters insisting on payment of bills will cease. The creditors will not be allowed to call you on the phone. Some debts, however, are not eligible for discharge. These include student loans, fines imposed for criminal activity, some kinds of taxes and child support.
A Chapter Seven is called a liquidation. This means the debtor gives up property owned to be sold with the proceeds being distributed to the creditors. There are some possessions that can be retained.
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.
In legal terminology it will discharge all debts. It will restore utility service, stop foreclosure on a home and prevent your car from being repossessed. If any of your creditors have fraudulent claims against you, this gives you the opportunity to challenge them.
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 demanding letters insisting on payment of bills will cease. The creditors will not be allowed to call you on the phone. Some debts, however, are not eligible for discharge. These include student loans, fines imposed for criminal activity, some kinds of taxes and child support.
A Chapter Seven is called a liquidation. This means the debtor gives up property owned to be sold with the proceeds being distributed to the creditors. There are some possessions that can be retained.
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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