A bankruptcy attorney Jacksonville can help you out if you have a pile of debt and no idea what to do. Even if you do know what you intend to do, these professionals can help you get through the process unscathed. Legal proceedings can be complicated, and hiring someone who knows what they are doing is often advantageous.
There are two major types or 'chapters' of bankruptcies that most individuals file under. These are not the only options, but the other four scenarios are less likely, or reserved for certain groups such as municipalities and family farmers. The most common filings for individuals are made under Chapters 7 and 13.
There is a liquidation option, which is accessed by filing under Chapter 7. This is a petition to have the courts wipe out your unsecured debt (mostly credit card debt) in exchange for the surrender of all your property. Items exempt from this seizure are dictated by state law, and generally comprise personal items such as clothing and furniture.
An option under a Chapter 7 filing can be used to keep certain property that is not paid off, such as a car. A formal agreement must be drawn up between the lender and the debtor, stating that this debt will not be wiped out by the bankruptcy proceedings, and that the debtor will continue to pay. In exchange, the lender agrees not to repossess the vehicle as would normally occur after a Chapter 7 filing.
Chapter 13 bankruptcies are an option for people who make too much money to qualify under Chapter 7. These proceedings leave the debtor's property in his or her possession, but require that he or she make regular monthly payments for three to five years. The court uses various information to decide the size of these payments, such as the debtor's income and what the creditors would have gotten had there been a Chapter 7 filing.
A debtor filing under Chapter 13 who has a mortgage can use the proceedings to halt a foreclosure. However, he or she must pay any mortgage payments that are due after the date of filing, or the foreclosure process can be started again. And if the foreclosure is completed before the filing, the debtor has no additional recourse.
Not all types of debt are equally vulnerable to bankruptcies. Secured debt can be wiped clean, but the secured item (house, car, boat, etc) is generally repossessed. Student loans are difficult to wipe out through these proceedings, because to do so, the debtor must convince the court that there is little chance they will ever be able to pay. Consult with your bankruptcy attorney Jacksonville for more information.
bankruptcy attorney Jacksonville
There are two major types or 'chapters' of bankruptcies that most individuals file under. These are not the only options, but the other four scenarios are less likely, or reserved for certain groups such as municipalities and family farmers. The most common filings for individuals are made under Chapters 7 and 13.
There is a liquidation option, which is accessed by filing under Chapter 7. This is a petition to have the courts wipe out your unsecured debt (mostly credit card debt) in exchange for the surrender of all your property. Items exempt from this seizure are dictated by state law, and generally comprise personal items such as clothing and furniture.
An option under a Chapter 7 filing can be used to keep certain property that is not paid off, such as a car. A formal agreement must be drawn up between the lender and the debtor, stating that this debt will not be wiped out by the bankruptcy proceedings, and that the debtor will continue to pay. In exchange, the lender agrees not to repossess the vehicle as would normally occur after a Chapter 7 filing.
Chapter 13 bankruptcies are an option for people who make too much money to qualify under Chapter 7. These proceedings leave the debtor's property in his or her possession, but require that he or she make regular monthly payments for three to five years. The court uses various information to decide the size of these payments, such as the debtor's income and what the creditors would have gotten had there been a Chapter 7 filing.
A debtor filing under Chapter 13 who has a mortgage can use the proceedings to halt a foreclosure. However, he or she must pay any mortgage payments that are due after the date of filing, or the foreclosure process can be started again. And if the foreclosure is completed before the filing, the debtor has no additional recourse.
Not all types of debt are equally vulnerable to bankruptcies. Secured debt can be wiped clean, but the secured item (house, car, boat, etc) is generally repossessed. Student loans are difficult to wipe out through these proceedings, because to do so, the debtor must convince the court that there is little chance they will ever be able to pay. Consult with your bankruptcy attorney Jacksonville for more information.
bankruptcy attorney Jacksonville
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