When some people hear that a person has filed bankruptcy they think, that person is a “deadbeat”, or they definitely are not good with money. Oftentimes that is not the case. In today’s world, if you are facing overwhelming credit card debt, mounting medical bills or the threat of foreclosure of your home, you are not alone. Many Florida families and individuals are in the same situation. However, there is hope. Bankruptcy can be a powerful tool for eliminating debt and helping you gain a fresh start.
Unlike Chapter 13, which involves you making a plan to repay your debt, Chapter 7 bankruptcy involves liquidation. All of your nonexempt property and assets will be sold to help repay your creditors. However, you will be allowed to keep all property that is considered exempt. I can help you understand exactly what property you can keep before you file a Chapter 7 bankruptcy petition.
Immediately after you file the petition, the bankruptcy court will issue an automatic stay on your behalf. This automatic stay stops creditors from contacting you or pursuing lawsuits against you. The stay is an excellent defense against creditor harassment.
In addition, Chapter 7 bankruptcy will eliminate all your unsecured debts. Such unsecured debts include credit card debt, medical bills, judgments, unsecured loans and many others. In addition, you can surrender secured debt that you can no longer afford and not be responsible for the remaining portion of the debt. At my firm, I will explain which debts can be discharged in your individual situation.
Chapter 13 bankruptcy involves a three- to five-year repayment plan for debts. Most people who file a Chapter 13 petition do so for one of seven reasons:
In addition to the benefits listed above, filing a bankruptcy petition will put an automatic stay into effect. This stay is a court-issued order that will stop creditor harassment, wage garnishment and debt-related lawsuits against you.
To find out more about how the Law Firm of JAG, P.L.L.C. can help you obtain debt relief and gain a fresh start, arrange a free initial consultation. Call our office toll free at (800) 841-7184 or locally at (305) 827-8087, or fill out the online contact form.