There are two different types of bankruptcy with different results and requirements. The difference between chapter 7 and chapter 13 is Chapter 7 is considered a liquidation bankruptcy, while Chapter 13 bankruptcy is a restructuring of your debt which allows you to pay the debt in a timely manner. Laws concerning Chapter 7 bankruptcy and Chapter 13 Bankruptcy are different in every state, so if you are considering filing bankruptcy in Jacksonville, Florida you should contact a local Chapter 7 bankruptcy lawyer to find out more bankruptcy information and what Florida bankruptcy laws mean for you. A Jacksonville Bankruptcy Lawyer can make sure you have exhausted every other option before considering filing for bankruptcy protection.
Deciding which Chapter of bankruptcy to file is a difficult decision. How do you know if Chapter 7 is the right choice for you? Chapter 7 will wipe out most of your unsecured debt, not including student loans or debt accrued from late child support. Here are a few questions to ask yourself to determine if Chapter 7 bankruptcy may be right for you. You should always consult a Chapter 7 lawyer to determine if this is the correct type of bankruptcy to file.
Bankruptcy Can Help:
- End Harassing Phone Calls from Debt Collectors
- Stop Repossession, Garnishment, or Lawsuits
- Stop Foreclosure, Strip 2nd Mortgages, Get Rid of Unwanted Real Estate
- Keep Personal Assets, Protect Retirement Savings and Get a Fresh Start
Will My Creditors Stop Harassing Me?
Once a bankruptcy lawyer has filed a bankruptcy petition in court on your behalf, your creditors are forced to stop from making any contact with you immediately. Each creditor that you list on your bankruptcy petition will get notification of your bankruptcy filing. Their obligation to STOP the harassing calls is required by law and if necessary enforced by a judge.
Will Filing Bankruptcy Damage My Credit Score Forever
Bankruptcy will not destroy your credit score forever. Bankruptcy does affect your credit score severaly and remains on your credit report for 10 years, however typically after filing for bankruptcy protection you will see an improvement in scores soon after discharge. A history of not meeting obligations of creditors due to unforeseen circumstances is more devastating to your credit than a onetime bankruptcy filing will be.
In an average person's circumstances, the increase in credit score after one year post-bankruptcy is substantial. You no longer have high debt-to-income ratios as well as numerous past due accounts. The filing for bankruptcy protection in Jacksonville, Florida is an option available to help you start over and get a fresh start. It is not an overnight process but within 12-18 months, you typically will see dramatic improvement in your ability to rebuild your credit score.
Are you Overwhelmed with Debt and Have Few Assets?
If So, filing for Chapter 7 bankruptcy protection may be a solution for you. Chapter 7 involves a liquidation of most of your assets and dividing the resulting money up between your creditors. The less you own, the less you stand to lose by filing Chapter 7. You can expect to lose property, boats and expensive cars (usually over $1000). Tools that you need to continue working are usually protected from liquidation. A Chapter 7 attorney can help you determine which assets you may be eligible to keep.
Are you unemployed and or burdened with outstanding medical bills you feel you will never be able to pay? These are the most common reasons for filing for Chapter 7 bankruptcy. Chapter 7 will eliminate all of these debts and give you a fresh start.
You should always contact a Chapter 7 Jacksonville Bankruptcy Attorney to determine if you need to file for bankruptcy at all, and ensure that you file for the correct Chapter for your personal situation. For More bankruptcy information and when to file bankruptcy, please consult Jacksonville Bankruptcy Lawyers for a Free Initial Consultation
Do Want to Keep Your Home, Car or Strip a 2nd Mortgage?
Chapter 13 bankruptcy will allow you to keep your home or vehicle or possibly wipe out a second mortgage and unsecured debt. A Debtor, who files for Chapter 13 bankruptcy protection to partially repay his or her debt may have between 36 and 60 months to repay the debt. This is not a full repayment and is solely based upon the debtor's disposable income. It is usually necessary that a debtor have regular income to qualify for a Chapter 13 reorganization.