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« Bankruptcy Lawyers Home « How We Can Help with Bankruptcy and Debt Relief
Bankruptcy Attorneys and Debt Relief Experts That Can Help
As an experienced Jacksonville law firm that’s been specializing in bankruptcy for twenty years, we offer a variety of services based upon federal law, and other options based upon negotiations with your mortgage company, car lender, or creditors.
Bankruptcy is not right for every situation. We believe that if you can pay your debts, you should do so. But for many people, simply paying all their debts is not an option. You should understand your rights, and what options you have when it comes to bankruptcy.
When you come see us, we don’t assume that filing a bankruptcy case is right for you. Instead, we examine your situation- your job, your family obligations, your income, and your debts, and help you find the best solution you and your family. Contact us now to find out what options you have!
The Protective Wall of Bankruptcy- the “Automatic Stay”
Your right to use the United States bankruptcy laws is a powerful tool in dealing with your creditors and resolving disputes with them. If you file a bankruptcy case, you are immediately protected from your creditors- meaning the people or companies you owe money to. We like to describe that protection as a “wall”- with you on one side, and your creditors on the other side. In effect, the federal court acts as the “wall” standing between you and your creditors. That protective wall is one of the basics of bankruptcy protection, and is called the “automatic stay”. In this sense, “stay” means “stop”, because your creditors have to stop collection efforts. It’s “automatic” because it happens immediately when a bankruptcy case is filed- no separate order is required unless the debtor has filed two cases in the last year.
With a very few exceptions related to special domestic support obligations, your creditors cannot take any action to collect from you, or from your property, without first going to the federal court and getting permission. Most ordinary “unsecured” creditors (meaning those that do not have collateral for the debt) cannot ever get that permission, and the “wall” remains in effect.
With that protective wall in place, the person who filed the case enjoys the breathing room he or she needs to eliminate or restructure their debts.
The goal of most people or companies filing for bankruptcy is to get a “discharge” of their unsecured debts and to restructure their secured debt. A secured debt is one where the promise to pay is supported by collateral, like a mortgage on a home or a lien on a car or other property. If you are current on your secured debts, and mostly have unsecured debts like credit cards, signature loans, and medical bills, you probably would want to consider filing a Chapter 7 case. If you are behind on secured debts and your home or car lender is threatening foreclosure or repossession, then Chapter 13 bankruptcy may be a better option.
More About Filing for Bankrupcty...
Make A Fresh Start: How Will Bankruptcy Affect My Credit?
We see people with severe debt problems every day. We are often asked, “How will filing for bankruptcy affect my credit?”
The answer can be surprising. For most people considering bankruptcy because of a history of late payments, a foreclosure, or a repossession, the filing of a bankruptcy case is usually better for your credit than the alternatives.
For most of our clients, bankruptcy provides a fresh start and allows them to reestablish their creditworthiness so they can live prosperous financial lives.
To be frank, most people, although not all, who need bankruptcy relief already have low credit scores because of slow or late payments.
A bankruptcy filing is designed to discharge debts and allow you to make a fresh start. While a history of late payments and bad debt continues to drag your credit down, a bankruptcy case essentially “cleans the slate” and allows you to rebuild your credit relatively quickly through the responsible use of post-bankruptcy credit.
In fact, with responsible post-bankruptcy credit use, someone who filed bankruptcy is generally able to get new credit (including a car loan or mortgage) within a year or two, assuming their income is sufficient. In addition, if you’re married and most of your debt is in one partner’s name, one household member can file, and preserve the credit rating of the other.
Slow Down or Avoid Foreclosure on Your House
If your home is in foreclosure, you should consider filing a Chapter 13 bankruptcy, which will likely immediately stop the foreclosure process and allow you time to put together a plan to deal with the mortgage payments. You can file a Chapter 13 bankruptcy case to stop the foreclosure at any time before the house is actually sold at a judicial sale.
In addition, you may be able to get rid of a second mortgage lien entirely, if the value of your house is less than the amount of the first mortgage. For instance, if your house is worth $150,000.00 and your first mortgage balance is $160,000.00 and you have a second mortgage of $90,000.00, you can “strip” second mortgage lien off entirely, and have the $90,000.00 treated like credit card debt. Typically, you would pay a very small percentage on that debt, saving you tens of thousands of dollars.
The best way to avoid foreclosure if you’re behind make the payments on your home is to file a chapter 13 bankruptcy and propose a payment plan to pay off your past-due house payments. In many cases you will have up to 5 years to do this. This means that even if you owe a fairly large amount of past-due payments, your chapter 13 payment could be relatively small and affordable.
Protect Your Car, Truck, or Motorcycle from Repossession
If you are facing the threat of a repossession of your vehicle, you need to act quickly. Auto lenders tend to act much more quickly on past-due accounts than home lenders do, and can repossess your vehicle without first going to court.
In many instances, if you have had the vehicle for 2 ½ years, we can reduce the balance due on your vehicle loan. Even if we can’t reduce the balance, we can reduce the interest rate on your loan in a Chapter 13 bankruptcy case. The rules are complex, and your strategy will depend on the value of your car, how much you owe on it, whether there is a co-signer on the note, and a variety of other factors.
What you need to know is that if you file a bankruptcy case, you can almost always keep the car by making the regular payments.
Stop the Embarrassing and Harassing Creditor Collection Calls
Even if you don’t file a bankruptcy case, we can usually protect you from the non-stop collection calls. Constant phone calls and letters from creditors and collection agencies can cause a lot of stress.
If you file a bankruptcy case, the “automatic stay” of federal law forces creditors to stop calling. Credit card collection calls made to someone who has file bankruptcy is a violation of federal law. You can with bankruptcy, these will stop. Even better, you will have the opportunity to significantly reduce your debt obligations legally and eliminate most of them.
Reduce or Eliminate High Medical Bills
Sometimes a catastrophic illness or an unfortunate accident can completely ruin a family’s finances. Sometimes, a family has to pick and choose as to which bills must be paid first to keep afloat. Medical bills are almost always “unsecured debts” and can be completely wiped out in a Chapter 7 bankruptcy or Chapter 13 bankruptcy case.
Gain Time to Find New Job After Loss of Employment
Studies have indicated that a job loss is a very common reason for people to file for bankruptcy when the bills keep piling up. If you or someone in your family has lost a job and is feeling financial pressure, you should at least talk to an experienced bankruptcy lawyer who can explain your options in a calm and comforting way.
Find Out What You Stand to Lose By Filing Bankruptcy
While it is one of the duties of a trustee to sell assets in the estate, the trustee cannot necessarily reach all of your assets. There are many factors that must be examined before this happens. The type of bankruptcy has a lot to do with how much the trustee can seize. For example, a chapter 13 bankruptcy is a reorganization bankruptcy. Simply, the debtor keeps the majority if not all of his or her assets, and forms a repayment plan to satisfy interested creditors. Even in a chapter 7 bankruptcy filing, the debtor gets to keep many assets.
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