Jacksonville Attorneys for Your Bankruptcy Guidance

What is bankruptcy?

Bankruptcy is a process in which some or all of your debts can be erased or reduced when you cannot pay them. There are two common types of bankruptcy for individuals and married couples — Chapter 7 and Chapter 13.

Chapter 7 allows you to discharge, or erase, unsecured debts if you give up most of your property. “Unsecured debts” are debts you owe that are not attached to property, like credit cards or medical debts, whereas “secured debts” are those like mortgages and car loans which are secured by property, meaning the creditor can take that property if you don't pay the debt. There are specific rules about what property you can keep in a Chapter 7, and the rest of your property is sold to pay creditors.

Chapter 13 allows you to “reorganize” your debt if you make enough money to pay some of them and you have secured property that you want to keep, particularly a house. The judge must approve your plan to repay your debts over a number of years and can force your creditors to take lower payments than you normally pay.

Debts that you cannot erase, or discharge, are child support, alimony, criminal fines, certain taxes, certain student loans, and secured debts like mortgages and car loans.

Is bankruptcy the right solution for me?

To file for Chapter 7 or Chapter 13 bankruptcy in Florida, you must have lived in Florida for at least six months, and you cannot have filed for bankruptcy in the recent past. (The time limits depend on which type you are filing.)

Bankruptcy can be a fast way to stop creditors from taking your property and harassing you, but this is not the right answer for everyone. You may be able to work out payment plans for your debt without filing bankruptcy, you may have debts that cannot be discharged, or you may be “judgment proof” because your only income is from Social Security, unemployment, or other public benefits that your creditors cannot take.

Bankruptcies are a lot of work. You are required to complete a credit counseling class, prepare a financial document listing all of your assets and debts, gather copies of tax returns and other documents, in a Chapter 7 make choices about which property you want to exempt under the rules, in a Chapter 13 create a plan the judge will agree to for repaying some of your debts, and meet with any creditors who want to question you, to name some of the requirements.

How will bankruptcy affect my credit?

Also consider that bankruptcy will show on your credit history for ten years. You may still be able to get credit after your bankruptcy case is over, but there is no guarantee. Some people are able to establish better credit after a shorter period of time by regularly paying their bills and debts after their bankruptcy case is completed.

Do I need an attorney?

You are not required to hire an attorney, however the bankruptcy process involves both federal and state laws, and during the process you must meet with a trustee, meet with any creditors who want to question you, and perhaps go to court. Bankruptcy preparers who are not attorneys cannot give you advice or help you fill out the financial schedules. If you have questions about your rights and responsibilities in bankruptcy you should consider speaking with an attorney.

Contact Beller & Bustamante, P.L.

Contact our law firm by calling (904) 288-4414 to schedule a consultation regarding your bankruptcy questions and concerns. We assist couples and individuals in making decisions about your financial future.