Posted On: April 3, 2010
Jacksonville Bankruptcy Lawyer Clarifies Which Debts Can Be Eliminated Through Bankruptcy
A Jacksonville bankruptcy attorney is helping Florida residents better understand the bankruptcy process by spelling out exactly which debts can – or cannot – be discharged through a Chapter 7 bankruptcy or Chapter 13 bankruptcy.Florida bankruptcy can:
Eliminate credit card debt – Credit card debt is “unsecured” debt – which means it is not secured by a lien, like a house or car. Bankruptcy was specifically designed to eliminate unsecured debt; however, if you file for Chapter 13 bankruptcy, you may have to pay off a portion of your credit card debt over a three to five year period.
Eradicate unsecured debt – In addition to credit card debt, you may have other unsecured debt like medical bills that is eligible for discharge by filing Florida bankruptcy.
Remove some liens – In some instances, you can invoke certain procedures during bankruptcy to eliminate certain liens. Your Florida bankruptcy attorney can best advise you on this.
Stop credit collection activities – Probably one of the most welcome benefits for Florida bankruptcy filers is that a bankruptcy filing stops creditor harassment. In fact, creditors must cease all collection activities once bankruptcy is filed.
Stop foreclosure – A Chapter 13 bankruptcy can prevent foreclosure by forcing a lender to accept a repayment plan, but only if you can show you have enough income to adhere to that plan.
In general, Florida bankruptcy cannot eliminate tax debt, student loan debt, child support and alimony, or prevent a creditor from repossessing secured property. However, there are a few exceptions to these rules, so your best bet is to consult with a Florida bankruptcy attorney.
If you need more information about what filing Florida bankruptcy can –or cannot -- do for you, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
