Bankruptcy
Bankruptcy in Jacksonville, Florida
At King & Dolaghan, P.A., in Jacksonville, FL, we are experienced in all forms of bankruptcy and debt workout. Contact us today to discuss your situation and to form a plan for resolution.
Florida bankruptcy
Federal bankruptcy law in Jacksonville, FL, recognizes that bad things sometimes happen to good people, and consumers sometimes simply do not have the ability to comply with creditors’ repayment demands. In some cases, there are circumstances beyond the consumer’s control which can only be addressed through the cancellation or modification of debt.
In a Florida bankruptcy, the property a debtor is entitled to keep is determined by the state's exemptions. Exemptions allow an individual to exempt, or keep, certain kinds of property. Your exemptions will be determined by which state you resided in during the two years prior to filing for bankruptcy. We can determine before you file what exemptions may apply to your particular situation.
Chapter 7 Bankruptcy in Jacksonville, FL
Chapter 7 is often the quickest way for a debtor to regain control of their financial situation. Chapter 7 bankruptcy is most helpful for a person with a lot of unsecured debt, such as:
- Credit cards
- Medical bills
- Previous repossessions
- Past due accounts
- Judgements
- Deficiencies from foreclosures
Chapter 7 is a liquidation bankruptcy in which an eligible debtor is discharged from their debt. In certain situations, a debtor may have more assets than the law exempts for you. In those cases, the debtor may choose to forfeit their assets for liquidation or buy back their non-exempt equity from the bankruptcy estate.
Chapter 13 in Jacksonville, FL
Chapter 13 bankruptcy is a reorganization or repayment type of bankruptcy. It allows the debtor to consolidate many of their debts into one payment. Chapter 13 is designed to save homes from a foreclosure action. The delinquent mortgage payments may be caught up over a 60-month period. Other secured debt, like car payments, will be re-amortized over the life of the plan at a market interest rate. In certain instances, if you have owned a vehicle more than 910 days, we may be able to "cram down" the payment to what the vehicle is worth, instead of what you owe. Priority debt like delinquent taxes or child support will also be paid under the provisions of a Chapter 13 plan.
There are many factors that determine whether or not you will have to pay anything back toward your unsecured debt. If you have to pay anything back toward your unsecured debt, it is often a small fraction of what you owe.
A Chapter 13 plan payment is often much less than the total of the separate payments you are making to each creditor. Creditors may not take any legal action against you or make any collection efforts while you are protected by a bankruptcy stay. Additionally, most of the attorney’s fees can be paid through the Chapter 13 plan as well.
Automatic stay
Filing for bankruptcy puts an automatic stay into effect, which acts an injunction against your creditors. This injunction forces creditors to cease any and all collection activities against you. The automatic stay immediately stops:
- Creditor phone calls
- Collection letters
- Wage garnishments
- Lawsuits
- Bank levies
- All other forms of harassment, intimidation and scare tactics by creditors
Discharge
Once a bankruptcy case is successfully completed, the consumer receives a discharge from the bankruptcy court. The discharge releases the debtor from the legal liability of any of the debts included in the bankruptcy. Creditors are left with no legal cause to contact you or pursue debts listed in the bankruptcy documents. For those debts that are not dischargable (ie: student loans, certain tax liabilities, child support payments), a repayment plan can sometimes be established.
Debt Workout
A debt workout is accomplished by negotiating with creditors so that the creditor agrees to accept less than what is owed. Many debts can be settled for a percentage of the amount owed by paying a lump sum. It is also possible to negotiate repayment terms other than the terms contained in the original agreement, like a reduction in interest rate or an extended repayment period.
Contact us today
Our Jacksonville bankruptcy lawyers are available to discuss your bankruptcy needs immediately. Please do not hesitate to contact King & Dolaghan, P.A. today. If you have any questions regarding business bankruptcy, personal bankruptcy, foreclosure prevention or creditor law call our Jacksonville bankruptcy law firm at 904-387-9886 for a free consultation.
