If you are one of the millions of people trying to survive 2020, no doubt you have been pressed financially and may be receiving calls from creditors, or even having to decide what to do when extension plans complete their courses. It may seem insurmountable at times but, fortunately the law is here to protect and in as little as ninety days (90) you could be breathing easier.
Under federal law, bankruptcy will supersede and rule over state collection laws and may offer you relief. There are a few forms of bankruptcy; most common is the “Chapter 7” relief. This law (CH.7) was designed to give natural persons a fresh start and if you are a Florida resident of length, your home is protected as well as your retirement.
Chapter seven commonly wipes out outstanding debts such as medical bills, personal loans, bank loans, credit card balances, judgements, lawsuits and the like through a process called discharge. There are some things that you will always be responsible for and won’t be discharged; these fall into child custody payments, student loans (although courts are looking into this more), and taxes. Also, anything done through fraud won’t be discharged. Whereas, the court recognizes people fall on hard times, it lacks understanding if one just racks up bills intentionally only to declare bankruptcy after, but, there are a lot of nuts and bolts to this.
Most people don’t realize that to file for bankruptcy, one needs to make very extensive disclosures about the assets and liabilities that are on hand. Additionally, some property that you may have could end being sold to satisfy certain debts. This sale is handled through the personal role of a trustee. What property gets sold or even if it so does, depends on what type of creditor you are seeking relief from. There are a few types of creditors, such as secured creditors, un-secured creditors, and lienholders.
Once a person initiates a bankruptcy petition to the court several things happen and probably the most relieving one depending on circumstance is receiving no more debt collection calls. The courts have recognized what is called an “automatic stay” and this prevents harassment of any kind or further attempts to collect money from you. The courts take any violations of the automatic stay very seriously.
Since each situation is unique, an experienced bankruptcy attorney is strongly recommended. There are several forms to initiate the process and knowing your rights and what is protected in your rights is so vital.
We at Harnage Law are experienced, knowledgeable and take pride helping others in bankruptcy proceedings and can help you gain relief from debt.