June 18, 2024

politics of law

Politics and Law

Is Bankruptcy Right for Me?

3 min read

What Is the Best Way to File for Bankruptcy?

If you’re struggling with overwhelming debts and want to get back in control of your finances bankruptcy may be the solution you need. While bankruptcy has many advantages, it’s a decision you should not take lightly. You should speak with an experienced Jacksonville attorney if you’re wondering “Is bankruptcy the right choice for me?”. They can help you weigh all your options.

What Are the Benefits of Bankruptcy?

  • Bankruptcy Can Eliminate Debt

The best thing about bankruptcy is that you can eliminate a large portion of your debt. Although bankruptcy won’t eliminate all your debt, it will give you some breathing space.

  • Bankruptcy can temporarily stop foreclosure or repossession

The automatic stay that is granted the moment you file will prevent foreclosure and repossession. This stay will prevent your creditors from collecting any money on your assets. This stay is only temporary. To stop repossession or foreclosure, you will need to either pay your debts or go through bankruptcy.

  • Bankruptcy can stop wage garnishment

Once you have filed for bankruptcy, all wage garnishments must cease. This is only a temporary fix. Once the stay has been lifted, creditors may begin garnishing your wage if you have a lot of non-dischargeable debts or if you don’t meet the bankruptcy requirements.

  • The Bankruptcy will stop creditor harassment

The constant harassment by creditors can be the most frustrating part of crushing debt. By filing for bankruptcy, you can stop the harassment. If your creditors want to contact you, they will have to talk to your lawyer.

What Type of Bankruptcy Is Right for Me?

There are two types of bankruptcy that an individual can choose from:

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is the fastest and most common type of bankruptcy. Chapter 7 involves selling assets to pay creditors. If you have a lot of exempt property and assets that are protected by exemptions or if your debt is mostly dischargeable, then you might want to file for Chapter 7. Dischargeable debt includes credit card bills, medical costs, and personal loans.

You must pass the Means Test to qualify for Chapter 7. This test looks at your income and determines if you have enough to pay off your debts.

Chapter 13 Bankruptcy

Chapter 13 is often referred to as “reorganization bankruptcy” and allows you to restructure debts into a reasonable repayment plan over a period between three and five years. Any remaining debt will be discharged at the end of your repayment plan.

You will most likely qualify for Chapter 13 if you don’t qualify for Chapter 7. In essence, Chapter 13 requires a regular income since you will have to continue making payments until the plan is over. It is a good option if your debts are mostly non-dischargeable and you want to keep a lot of non-exempt assets.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Jacksonville! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.

The information provided on this website does not, and is not intended to, constitute legal advice; all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user, or browser; the ABA and its members do not recommend or endorse the contents of the third-party sites.

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