St. Augustine Bankruptcy Lawyer
Most people face financial difficulties at some point in their life. If you are one of the millions of people struggling to pay your bills due to illness, job loss, or something else, bankruptcy may be the answer. When filing for bankruptcy, it is best to work with a St. Augustine bankruptcy lawyer who can advise you of your legal options.
Types of Bankruptcy in St. Augustine
The vast majority of people who file bankruptcy file either Chapter 7 or Chapter 13. There are many differences between these two and the type you choose will not only affect the process, but also the amount of debt you have once your case is final.
Chapter 7 is the most common type of bankruptcy and it holds many benefits for borrowers. It is one of the fastest ways to file bankruptcy, as it usually only takes a couple of months. Chapter 7 bankruptcy is also very affordable and once your case is closed, you will no longer owe most or all of your debt to creditors. Chapter 7 does have some drawbacks, though. Borrowers must pass a means test in order to be eligible and in some cases, people do lose some assets.
In a Chapter 13 bankruptcy, borrowers do have to pay back some or all of their debt. The debt is restructured in a new payment plan, which typically extends between three and five years. Spreading the debt out over a certain amount of time makes the debt more manageable to repay. Chapter 13 does take longer, but there is also no risk of losing assets and borrowers do not have to pass a means test.
Debt Discharged During the Bankruptcy Process
Bankruptcy can discharge, or eliminate, many different types of debt. These include overdue utility bills, credit card balances, personal loans, medical bills, and more. If you are willing to forfeit your home or your vehicle, you can also discharge your auto loan or mortgage. These types of debts are considered secured loans because the actual property is used as collateral, meaning the lender can seize them if you do not repay the debt.
Unfortunately, not all debts are dischargeable during the bankruptcy process. Tax debt and child support are two types of non-dischargeable debt in bankruptcy. In some cases, student loans can be discharged during bankruptcy, but doing so is very difficult. Before filing, it is important to speak to a St. Augustine bankruptcy lawyer who can advise on whether your debt is dischargeable and the outcome you can expect.
Call Our Bankruptcy Lawyer in St. Augustine for a Free Consultation
Filing for bankruptcy is a great way to get a fresh financial start, but the process is not always easy. At the Law Offices of Carol M. Galloway, P.A., our St. Augustine bankruptcy lawyer can help you through the entire process and give you the best chance of a favorable outcome. Call us now at 904-694-5489 or reach out to us online to schedule a free consultation and to learn more.