When filing for bankruptcy, there are a few things you should know. One of the things you should keep in mind is that there are different types of bankruptcy, including Chapter 7 and Chapter 13. Also, there are some alternative ways to file for bankruptcy.
Chapter 7 bankruptcy process is a way to eliminate debts that you cannot pay. In this process, a bankruptcy trustee reviews your finances to decide whether you qualify for bankruptcy. You will also need to pay a filing fee. The cost of this process averages around $350.
The filing process can take four to six months. Before you file, you must prepare a creditor matrix. This matrix will contain the names and addresses of your creditors. Consult an experienced bankruptcy attorney serving Jacksonville to help you navigate this process.
Your creditors may object to the discharge of a debt. For example, your creditor can say that you lied on your credit application. Also, your creditors can ask you to prove that you can’t afford the debt.
If you don’t qualify for bankruptcy, you can still restructure your debt payments with a Chapter 13 plan. However, this will only be possible if you can prove that you can’t meet your monthly obligations.
In this case, you may be able to keep some property. Depending on the circumstances, you could keep your home, car, and some retirement funds. But, it’s important to note that you will lose some other necessary goods.
Creditors may also try to collect restitution from you. However, this is illegal.
Before you can file for bankruptcy, you must complete a credit counseling course. These classes can be completed over the phone or online. You must also complete a means test.
If you are filing bankruptcy, you will have to make a decision about whether your debt is dischargeable. While some debts are automatically dischargeable, others are not. For instance, debts related to child support are non-dischargeable.
When you are considering filing for bankruptcy, it is a good idea to check with a lawyer or accountant for advice on non-dischargeable debts. The court can deny your bankruptcy petition if you do not fully disclose information.
Non-dischargeable debts include alimony, student loans, legal fines, tax debt, and money owed to certain tax-advantaged retirement plans. They can also include debts incurred in a willful or malicious act, such as injury to another person or property.
Debts that are not dischargeable are called “non-scheduled.” These debts are not listed in the bankruptcy petition. Instead, the bankruptcy trustee reviews the list of liabilities and determines whether they are dischargeable.
Certain debts are not dischargeable because of federal law. Private employers are prohibited from discriminating against a debtor based on filing for bankruptcy. Likewise, governmental units may not discriminate with respect to hiring, firing, or franchises.
If your debt is non-dischargeable, the court can order you to pay it in full. However, you can negotiate an affordable payment plan after your bankruptcy is filed.
You can get a copy of your discharge order from the clerk’s office of the bankruptcy court. After your case has been closed, it will take longer to retrieve your order.
There are a wide variety of alternatives to filing bankruptcy. These include defense litigation, debt settlement, and business wind-down. But, which one is the best?
The answer to this question will depend on the situation. It is best to consult an attorney. He or she can evaluate your financial situation and help you make a smart choice.
Taking the time to consider your options could mean the difference between getting out of debt and staying that way. A credit counselor can also help you. However, this is often a waste of time.
The most popular alternative to filing bankruptcy is debt consolidation. This means combining several debts into one loan with a lower interest rate.
While this may sound like a slap in the face to your creditors, it can save you money in the long run. For example, you can get a loan for about half the amount of your current debt and only pay a monthly fee.
Other less well known bankruptcy alternatives include the assignment of bankruptcy estate (ABC), or a business wind-down. ABCs are a more cost effective solution, as they don’t incur the fees associated with bankruptcy.
Similarly, the assignment of a bankruptcy estate is a streamlined process for liquidating a company. In this scenario, the distressed company transfers all of its assets to a trusted third party.