Some individuals find themselves so deep in debt that they cannot hope to pay all their creditors. A legal procedure to relieve them of that debt is called a bankruptcy. As a leading Jacksonville FL Bankruptcy Attorney can explain, all collection attempts will be stopped immediately upon filing.
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.
You will have the chance to catch up on mortgage payments, although they will not be erased. You will also continue to owe any liens on your property. This allows you time to make up the missed payments. If a creditor is trying to garnishee your wages, it will block that from happening.
The threatening letters demanding payment of debts will stop. No creditors will be permitted to contact you on the phone. There are, however, some debts that cannot be discharged. These include child support, student loans, criminal fines and some taxes.
There are two types of bankruptcy available for a non-business situation. You are required to give up certain possessions to be sold in a chapter seven. The possessions are sold and the money divided up among the creditors. Some possessions are exempt.
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.
All bankruptcies are federal matters, settled in federal court. A petition for the Chapter Thirteen must meet certain standards. While payments are being made, the creditors are not allowed to add interest to the money owed. The stressful attempts at collection by mail or phone will be stopped.
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.
You will have the chance to catch up on mortgage payments, although they will not be erased. You will also continue to owe any liens on your property. This allows you time to make up the missed payments. If a creditor is trying to garnishee your wages, it will block that from happening.
The threatening letters demanding payment of debts will stop. No creditors will be permitted to contact you on the phone. There are, however, some debts that cannot be discharged. These include child support, student loans, criminal fines and some taxes.
There are two types of bankruptcy available for a non-business situation. You are required to give up certain possessions to be sold in a chapter seven. The possessions are sold and the money divided up among the creditors. Some possessions are exempt.
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.
All bankruptcies are federal matters, settled in federal court. A petition for the Chapter Thirteen must meet certain standards. While payments are being made, the creditors are not allowed to add interest to the money owed. The stressful attempts at collection by mail or phone will be stopped.
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