If your assets or your ability to pay off your debts is lower than the amount of money that you owe, it may be time to talk with bankruptcy lawyers in Jacksonville FL. When you can no longer meet the monthly obligations you have on your debt, it can be impossible to get yourself back in good standing with your creditors. In this situation, it is a good idea to speak with bankruptcy lawyers in Jacksonville FL to find more bankruptcy information and what your options are.
The Importance of Bankruptcy Attorneys
Filing for bankruptcy can be a very delicate, yet complicated process that requires attention to detail and knowledge of both federal and state bankruptcy laws. But before you even get to filing, making the decision to file for bankruptcy and which kind of bankruptcy to file requires careful examination to determine what is the best option for the individual case. All of these factors make it very important to work with knowledgeable and experienced bankruptcy attorneys that can provide you with solid bankruptcy information.
Bankruptcy is a state and federal court process that helps individuals or businesses expunge existing debt or create a plan to pay back part of that debt while under the protection of bankruptcy court. The two most common forms of bankruptcy can be classified as liquidation or reorganization. Both kinds of bankruptcy follow different federal and state laws and have different rules about what debts are covered, who is eligible to file, and what assets can be kept. Experienced and knowledgeable bankruptcy attorneys will be able to handle all of these details and guide you to the best choice.
How do I know if bankruptcy is the right decision?
Filing bankruptcy can help give you the fresh start you may need and dig you out from under the mountain of debt you are buried under. If you have fallen behind on payments, are facing foreclosure, are receiving harassing phone calls from creditors, or the possibility of wage garnishment, repossession, or a lawsuit filed against you, then bankruptcy may be an option for you. Bankruptcy can wipe out some of your unsecured debt, which does not include student loans or child support payments, and allow you to rebuild your credit without the weight of that debt on your shoulders. Speaking with an experienced and knowledgeable Jacksonville bankruptcy lawyer can help make sure bankruptcy is the best choice.
What does bankruptcy do?
There are two different categories of bankruptcy that come with different rules and requirements. Chapter 7 bankruptcy is the liquidation category of bankruptcy, where your major assets are liquidated and the money is used to pay off all or some of your debt. The fewer assets that you have, the less that you stand to lose by filing chapter 7 bankruptcy. In the state of Florida there are specific assets that you are allowed to exempt, which means they cannot be liquidated, but in general homes, boats, cars and other items not necessary for employment or survival can be expected to be lost. Experienced bankruptcy lawyers in Jacksonville FL can help you figure out what assets you are entitled to keep.
Chapter 13 bankruptcy is the reorganization category of bankruptcy that will allow you to keep the assets that you would most likely lose in a chapter 7. Chapter 13 will restructure your current debts into a monthly payment plan scheduled over three to five years. This does not mean you will repay the entirety of your debt, your payment plan and payment amount are based upon your disposable income. If you want to keep your home and have the disposable income to take on additional monthly payments, than filing chapter 13 bankruptcy will allow you to do that.
Everyone’s situation is unique and should be evaluated by bankruptcy lawyers in Jacksonville FL to ensure what the best option for you is, and every step in the process is completed correctly. Contact The Law Offices of Justin McMurray, P.A. at (904) 248-4482 for a FREE consultation today.