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If you are struggling to make the monthly payments to your creditors, consider filing for bankruptcy. Depending on the type of debt you have, after your bankruptcy is complete all of your debt may be erased. However, before you file for bankruptcy, discuss your financial situation with a bankruptcy attorney in Jacksonville. A bankruptcy attorney in Jacksonville will examine your financial situation and help you decide whether filing for bankruptcy is right for you.
If you decide to file for bankruptcy, your bankruptcy attorney in Jacksonville will inform you whether you should file for Chapter 7 or Chapter 13 bankruptcy. Whether you file for Chapter 7 or Chapter 13 bankruptcy will depend on your bankruptcy goals and if you are eligible for both types of bankruptcy. For example, if you do not have a significant number of assets that you would like to keep, your bankruptcy attorney in Jacksonville may recommend that you file for Chapter 7 bankruptcy. However, to be eligible to file for Chapter 7 bankruptcy after the changes to the Bankruptcy Code in 2005, you must either earn less than the median income for the state of Florida, or satisfy the means test. The means test is a calculation that your bankruptcy attorney in Jacksonville will perform that examines the amount of disposable income you have remaining each month after paying all necessary expenses. The smaller the amount of disposable income you have, the more likely you are to be eligible to file for Chapter 7 bankruptcy in Jacksonville.
However, if you have regular and reliable income for at least 6 months prior to filing for bankruptcy and you would like to keep your assets, you should consider filing for Chapter 13 bankruptcy. Regular and reliable income is important when determining your eligibility for Chapter 13 bankruptcy because you will develop a repayment plan for your Chapter 13 bankruptcy. The income can come from any source including from a salary, pension or Social Security disability benefits. Your bankruptcy attorney in Jacksonville will assist you in developing your Chapter 13 repayment plan. Most repayment plans take 3 to 5 years to complete. However, you must submit your repayment plan for approval from the bankruptcy court prior to staritng your monthly payments. After you obtain approval, you will make monthly payments to your Chapter 13 bankruptcy trustee. Then, the bankruptcy trustee will disperse the funds to your creditors that are included as part of your Chapter 13 plan.
The bankruptcy discharge signifies the end of your bankruptcy case. A bankruptcy discharge means that the debts that are part of your bankruptcy case will no longer be enforceable by your creditors. In other words, the debts are essentially erased. If you file for Chapter 7 bankruptcy, you will receive a bankruptcy discharge 3 to 4 months after you file for bankruptcy. However, in a Chapter 13 bankruptcy, you must wait until you have completed your repayment plan to receive a bankruptcy discharge. Filing for bankruptcy can be a confusing process, and you may have many questions about the bankruptcy procedure. Therefore, contact a bankruptcy attorney in Jacksonville to answer any questions you have or visit the United States Bankruptcy Court’s website in Jacksonville http://www.flmb.uscourts.gov/. If you are considering filing for bankruptcy without the assistance of an attorney, visit http://www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyResources/FilingBankruptcyWithoutAttorney.aspx for additional information regarding how to file for bankruptcy on your own.