If you are dealing with serious debt issues and considering filing for bankruptcy, you might want to consult with a bankruptcy attorney Jacksonville. These professionals can explain in detail what the proper procedures are, and what you can expect from filing. They can also walk you through the sometimes-complicated protocols.
The most commonly used 'chapters' in the bankruptcy code are chapters 7 and 13. Three more can apply to individuals, but are for specialized circumstances that are not common, such as being the owner of a family farm. An additional chapter is reserved for municipalities to file under.
Chapter 7 bankruptcies are called liquidation bankruptcies, and wipe out your unsecured debt such as credit cards, in exchange for most of your valuable possessions. Only items that are exempt under state law are allowed to be kept by the debtor. These items usually include things like clothing, furniture, and other essentials.
During a filing under Chapter 7, most secured items such as homes and cars are repossessed. If the debtor wishes to keep an asset that he or she still owes on, a formal agreement must be reached between the lender and the debtor which states that in return for continuing to make payments on the asset, the item will not be repossessed. This agreement must be filed before the close of proceedings.
Bankruptcies for people who have a fair amount of disposable income are filed under Chapter 13, and are referred to as wage earners' plans. These filings permit the person to keep their property, as long as they make the court-mandated monthly payments. In deciding what these payments will be, the court considers the person's income, assets, and other items such as what the creditors would have received had a Chapter 7 filing been made.
Foreclosures can be halted by filing under Chapter 13, which is one reason that people do so. However, this will not affect foreclosures that were completed before the date of the filing. Additionally, he or she must make any mortgage payments that are due on or after the date of filing, or the foreclosure process may legally be restarted.
There are some debts that filing cannot eliminate. Secured debt is generally eliminated as well as unsecured debt, but in doing so, the items in question are repossessed. Student loans are not eliminated unless the debtor can prove that not only are they currently unable to pay, but they anticipate never being able to pay, which is a hard thing to prove. Check with your bankruptcy attorney Jacksonville if you are wondering whether your debts can be eliminated in this way.
bankruptcy attorney Jacksonville
The most commonly used 'chapters' in the bankruptcy code are chapters 7 and 13. Three more can apply to individuals, but are for specialized circumstances that are not common, such as being the owner of a family farm. An additional chapter is reserved for municipalities to file under.
Chapter 7 bankruptcies are called liquidation bankruptcies, and wipe out your unsecured debt such as credit cards, in exchange for most of your valuable possessions. Only items that are exempt under state law are allowed to be kept by the debtor. These items usually include things like clothing, furniture, and other essentials.
During a filing under Chapter 7, most secured items such as homes and cars are repossessed. If the debtor wishes to keep an asset that he or she still owes on, a formal agreement must be reached between the lender and the debtor which states that in return for continuing to make payments on the asset, the item will not be repossessed. This agreement must be filed before the close of proceedings.
Bankruptcies for people who have a fair amount of disposable income are filed under Chapter 13, and are referred to as wage earners' plans. These filings permit the person to keep their property, as long as they make the court-mandated monthly payments. In deciding what these payments will be, the court considers the person's income, assets, and other items such as what the creditors would have received had a Chapter 7 filing been made.
Foreclosures can be halted by filing under Chapter 13, which is one reason that people do so. However, this will not affect foreclosures that were completed before the date of the filing. Additionally, he or she must make any mortgage payments that are due on or after the date of filing, or the foreclosure process may legally be restarted.
There are some debts that filing cannot eliminate. Secured debt is generally eliminated as well as unsecured debt, but in doing so, the items in question are repossessed. Student loans are not eliminated unless the debtor can prove that not only are they currently unable to pay, but they anticipate never being able to pay, which is a hard thing to prove. Check with your bankruptcy attorney Jacksonville if you are wondering whether your debts can be eliminated in this way.
bankruptcy attorney Jacksonville
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