Going into debt is never intentional, but it can happen to anyone. Unexpected expenses or layoffs can make it impossible for you to pay your bills, and the associated interest and late fees pile up quickly. Fortunately, you can stop the bill collectors’ calls and eliminate your debt through bankruptcy. If you are planning to file for bankruptcy, you need to consult a Jacksonville Bankruptcy attorney.
Bankruptcy is a process designed to provide protection and assistance to people who can’t afford to pay their accumulated debts. Two main types of bankruptcy are available: Chapter 7 and Chapter 13.
Chapter 7 bankruptcy, which is also known as “liquidation,” is a type of bankruptcy that requires you to forfeit your assets to pay as much of your debt as possible. The remaining debts are then discharged by the court. Some assets are protected from this process through exemptions, allowing most filers to keep their most important possessions.
Chapter 13 bankruptcy, on the other hand, doesn’t require you to turn over any of your possessions. However, you will be required to pay all your debts in full according to a payment schedule approved by the court.
Filing Chapter 7
In order to file for Chapter 7 bankruptcy, you must pass the means test. The purpose of this test is to determine whether your income is low enough to qualify for this type of bankruptcy. This test evaluates your “disposable” income, which is your total monthly income minus certain expenses, to determine whether you can file for Chapter 7 bankruptcy. If you cannot file for Chapter 7, you can typically file for Chapter 13 instead.
Hiring a Bankruptcy Attorney in Jacksonville
If you’re thinking about filing for bankruptcy, you need to hire a qualified attorney to help you through the process. Your attorney will be able to explain how bankruptcy works and help you decide which type of bankruptcy is best. An experienced bankruptcy attorney can also guide you through the filing process and help you make the decisions that provide you with the most benefit.
Attorney Gabriela Narvaez is happy to help you decide whether bankruptcy is the right choice for you. She handles primarily Chapter 7 cases.
Contact GNV Legal Services
To learn more about filing for bankruptcy, or to begin the process, please contact GNV Legal Services today to schedule an appointment.