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.
This will offer a chance to pay overdue mortgage payments and missed car payments. If there is a lien against your house that will be temporarily halted. A creditor may be threatening to garnishee your wages. It will not be permitted once your attorney files the paperwork.
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.
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 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.
This will offer a chance to pay overdue mortgage payments and missed car payments. If there is a lien against your house that will be temporarily halted. A creditor may be threatening to garnishee your wages. It will not be permitted once your attorney files the paperwork.
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.
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 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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