Jacksonville Bankruptcy Attorney
Bankruptcy could be a good option for you if you are struggling with significant debt that you cannot currently repay. As soon as you file bankruptcy, creditors must stop contacting you in an attempt to recover the debt. This protection will remain in place until your bankruptcy case is finalized. You have the right to retain a Jacksonville bankruptcy attorney and you should exercise that right. A attorney can guide you through the process, let you know what to expect, and ensure no mistakes are made.
Chapter 7 Bankruptcy
Through a Chapter 7 bankruptcy unsecured debts are discharged, or eliminated. Chapter 7 bankruptcy is also sometimes called a liquidation bankruptcy because a borrower’s property is sometimes sold and the proceeds are distributed among the creditors. Florida law provides many exemptions that can protect the property of borrowers. These exemptions include homestead real property, pensions, prepaid college tuition accounts, and more. Many people who file Chapter 7 do not lose any property at all.
To be eligible to file Chapter 7, you must first pass a means test. The means test was added to the law in 2005. Its purpose is to determine if a borrower has the means to repay some or all of their debt. It considers a person’s income and certain allowances for transportation, housing, and food. Those who do not pass the means test must file another type of bankruptcy, typically Chapter 13.
Chapter 13 Bankruptcy
Chapter 13 is also known as a wage-earner’s bankruptcy because it is appropriate for people who have a regular source of income to repay most or all of their debt. During a Chapter 13 bankruptcy, your debt is reorganized into a repayment plan that extends three to five years.
You must submit the proposed repayment plan within 14 days of filing Chapter 13. If a judge approves the plan, your creditors are required to accept the terms of it. If a judge does not approve the plan, you will have an opportunity to amend it and address the concerns of the court.
Chapter 11 Bankruptcy
Chapter 11 bankruptcy is typically reserved for businesses, although individuals can file if their debt level is higher than the maximum amounts allowed in Chapter 13. Chapter 11 also reorganizes the debt into a repayment plan, but there is no time limit on these plans. One of the biggest benefits of a Chapter 11 bankruptcy is that it allows business owners to continue running their company as they go through the process.
Our Bankruptcy Attorney in Jacksonville Can Help
Determining what type of bankruptcy is right for you is not easy, and the process always has the potential to become complex. At Ronald Cutler, our Jacksonville bankruptcy attorney can remove much of the stress you are currently feeling, and will feel throughout the process. We will answer all of your questions, make sure you file the type of bankruptcy best for you, and give you the best chance of a favorable outcome. Call us now at 386-490-9949 or contact us online to book a free consultation.