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Bankruptcy Information in Jacksonville | Chapter 7 Bankruptcy | Chapter 13 Bankruptcy
Bankruptcy Information in Jacksonville Bankruptcy is designed so that individuals can regain control of their life and get a fresh start. Once filing for bankruptcy, individuals no longer have to worry about the burden of creditors harassing them to repay debts. Because bankruptcy is an extremely complicated aspect of the law, it can be overwhelming for individuals to handle on their own. Courts do not grant such individuals any special treatment for undertaking a bankruptcy case without an attorney, which can further add stress to the situation. This makes the hiring of a reputable attorney that much more important in order for the outcome of the case to be successful.Two common options for individuals considering bankruptcy in Jacksonville are filing under Chapter 7 and Chapter 13. Both types of bankruptcy filings have specific qualifications that an applicant must pass before being considered. There are many lengthy and complicated definitions of these types of bankruptcy on the internet, making them incredibly difficult to understand to anyone who is unfamiliar with them. Our goal is to eliminate any confusion that surrounds bankruptcy law, which is why we define Chapter 7 and Chapter 13 bankruptcies in the simplest way possible.
Chapter 7 Bankruptcy
This is the most common type of bankruptcy that people file for and is frequently referred to as a “straight” or “liquidation bankruptcy.” The individual’s unsecured debt, such as medical expenses and credit card debt are eliminated and any assets that are not exempt are liquidated. An individual’s home is considered exempt because the Florida Constitution protects it from liquidation. Filing under a Chapter 7 bankruptcy in Jacksonville is a relatively quick process and usually takes only a few months to complete.
Chapter 13 Bankruptcy
The basis of filing under a Chapter 13 bankruptcy in Jacksonville is to repay usually a portion of your debt. Repayment plans are structured around an individual’s capability to pay, which is decided on a case by case basis. A Chapter 13 bankruptcy can be helpful in eliminating second mortgages and some IRS debts, or restructuring motor vehicle loans. Debtors typically only repay a small percentage of their unsecured debts, such as credit card debts. This type of bankruptcy filing is used most frequently to save a house from a foreclosure sale and cannot be applied to businesses.
The Difference Between Unsecured Debt & Secured Debt
These two terms are used frequently in discussions about bankruptcy in Jacksonville and can often be confusing. It is important to understand these terms. A secured debt is where an asset, like a house, is used to back a loan. A mortgage is a good example of a secured debt, if a secured debt is left unpaid, the lender takes the asset that backed the loan. On the other hand, an unsecured debt is where money is lent without any asset backing the loan. Since there is no asset directly involved, it does not provide security for the debtor.
It is highly recommended that anyone considering Chapter 7 Bankruptcy or Chapter 13 Bankruptcy in Jacksonville should seek a reputable Jacksonville bankruptcy attorney because it is a difficult process from the very beginning. Consulting with an attorney can help you determine whether or not filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy is the best option for your specific situation and if it is, to analyze your situation to see which chapter best suits your needs
The Bankruptcy Process
When it comes to doing something about bankruptcy Pinkston and Pinkston have extensive knowledge of the legal system. We are confident in our ability to represent you. Do not spend another moment anxiety ridden and fearful of your future financial well-being, call Pinkston and Pinkston today. We will be happy to set up a complimentary no obligation consultation to discuss your current situation and will discuss our next plan of action to getting you financially stable again.