Most Americans struggle with some level of debt, especially credit card debt. While most people feel hopeless as they struggle to keep up with interest through minimum payments each month, there is another solution: bankruptcy. Bankruptcy has largely been misunderstood and can actually be the most viable solution for many people’s financial problems. Below are some of the most common questions we get about bankruptcy at John K. Turner Law.
Q: What is bankruptcy?
A: Bankruptcy is a legal option for people struggling to pay their bills. Bankruptcy proceedings take place in federal court and allow people to get a fresh start. Filing for bankruptcy will also stop creditors from calling you to collect on debts, until you get your financial situation sorted out in your case.
Q: Who can file for bankruptcy?
A: Individuals, married couples, and commercial businesses are all eligible to file for bankruptcy. There are different Chapters that one would file for depending on the circumstances, including Chapter 7, Chapter 11, and Chapter 13.
Q: How can bankruptcy help me?
A: Bankruptcy works by removing your legal obligation to most or all of your debts, giving you a fresh financial start. It immediately stops wage garnishment, restores utility service, and stops debt collection harassment. It can also prevent foreclosure on your house and provide you with an opportunity to get caught up on missed or late payments.
Q: What type of debt will bankruptcy wipe out?
A: For the most part, bankruptcy will erase most, if not all, of your debts. Some exceptions include money owed for alimony or child support, certain taxes, debts resulting from malicious behavior (drunk driving, for example), or student loans owed to a school or government body (unless the debt is causing an undue hardship).
If you want to learn more about a Florida bankruptcy, contact us at John K. Turner Law for a free consultation. We would be happy to review your case and determine if bankruptcy is a reasonable option for you.