Jacksonville Bankruptcy Lawyer
Financial struggles can be overwhelming, and when debt becomes unmanageable, bankruptcy may be a viable solution. A Jacksonville bankruptcy lawyer can guide individuals and businesses through the complex legal process of filing for bankruptcy, helping to eliminate or restructure debt. Understanding bankruptcy, common issues, and how to rebuild financial health after filing can empower those facing financial hardship. Nowack & Olson, PLLC is here to assist with every step of the process, offering experienced legal guidance to help you regain control of your finances.
Understanding the Most Common Types of Bankruptcy
There are several types of bankruptcy, but the most common for individuals and businesses include:
Chapter 7 Bankruptcy – Liquidation
Chapter 7 bankruptcy is the most frequently filed type, designed to discharge unsecured debts like credit card balances and medical bills. It involves the liquidation of non-exempt assets, with proceeds used to pay creditors. Many filers qualify to keep essential assets, such as a home or car, under Florida’s generous exemptions.
Chapter 13 Bankruptcy – Debt Repayment Plan
For those with a steady income who wish to keep their assets, Chapter 13 provides a structured repayment plan. This type of bankruptcy allows debtors to reorganize their debts and make manageable monthly payments over three to five years. At the end of the repayment period, certain remaining debts may be discharged.
Chapter 11 Bankruptcy – Business Reorganization
Primarily used by businesses, Chapter 11 allows companies to restructure debts while continuing operations. It enables businesses to negotiate repayment terms with creditors while keeping the doors open. In some cases, individuals with very high debt levels may also file for Chapter 11.
Common Bankruptcy Issues
Means Test and Eligibility
Not everyone qualifies for Chapter 7 bankruptcy. The means test evaluates income and expenses to determine eligibility. Those who exceed income limits may need to file under Chapter 13 instead.
Impact on Credit Scores
Filing for bankruptcy affects credit scores, often lowering them significantly. However, for many, the drop is temporary, and responsible financial habits can help rebuild credit over time.
Protecting Assets
Florida law provides strong asset protection, including homestead exemptions that allow filers to keep their primary residence in many cases. Understanding what assets are protected and which may be at risk is crucial when considering bankruptcy.
Co-Signers and Joint Debt
When a debt has a co-signer, bankruptcy can impact their financial liability. While Chapter 13 may protect co-signers under certain conditions, Chapter 7 generally does not, leaving them responsible for the debt.
Debt and Credit Repair After Bankruptcy
Bankruptcy provides relief from overwhelming debt, but financial recovery doesn’t end with the court ruling. Steps to rebuild credit include:
- Obtaining a secured credit card to demonstrate responsible use
- Making on-time payments for all remaining bills and obligations
- Monitoring credit reports for errors and disputing inaccuracies
- Keeping debt balances low and avoiding unnecessary borrowing
Rebuilding credit takes time, but many individuals see improvements within a few years post-bankruptcy.
Foreclosure and Bankruptcy
Foreclosure is a major concern for homeowners struggling with debt. Bankruptcy can provide a solution in different ways:
- Chapter 7 may temporarily delay foreclosure, but it does not provide a long-term solution.
- Chapter 13 allows homeowners to catch up on missed mortgage payments over time while keeping their property.
If foreclosure proceedings have already started, an automatic stay is issued upon filing for bankruptcy, halting the process temporarily. This can provide critical time to explore options and prevent the loss of a home.
Bankruptcy Attorneys Serving Throughout Jacksonville
- Downtown Jacksonville
- San Marco
- Riverside
- Mandarin
- Southside
- Arlington
- Northside
- Ortega
- The Beaches
- Avondale
Jacksonville Bankruptcy FAQ
How long does bankruptcy stay on my credit report?
Chapter 7 bankruptcy remains on credit reports for 10 years, while Chapter 13 stays for seven years. However, credit can begin improving long before that.
Can I keep my house and car if I file for bankruptcy?
Florida’s homestead exemption protects primary residences in most cases. Vehicle exemptions also apply, though limits exist. Chapter 13 is often the best option for those looking to keep their home while catching up on payments.
Will bankruptcy eliminate all my debts?
Bankruptcy can discharge many unsecured debts, but certain obligations—such as student loans, most taxes, and child support—are generally not dischargeable.
How soon can I qualify for a new loan after bankruptcy?
While bankruptcy initially lowers credit scores, many individuals qualify for car loans and even mortgages within a few years of filing, especially if they rebuild credit responsibly.
Can bankruptcy stop wage garnishment?
Yes, filing for bankruptcy triggers an automatic stay, which halts wage garnishment and other creditor collection efforts. Some debts, like child support, may still be collected.
Do I need a lawyer to file for bankruptcy?
While it is possible to file without an attorney, bankruptcy laws are complex. A lawyer ensures proper filing, maximizes asset protection, and increases the chances of a successful discharge.
How do I know if bankruptcy is the right option for me?
If debt is unmanageable, minimum payments are difficult to make, or creditors are pursuing legal action, bankruptcy may be a viable solution. Consulting with a Jacksonville bankruptcy attorney can provide clarity on the best path forward.
How Nowack & Olson, PLLC Can Help
The bankruptcy process is complex, and professional guidance is essential. Nowack & Olson, PLLC provides:
- Personalized Case Evaluations – Reviewing your financial situation to determine the best bankruptcy option
- Comprehensive Legal Representation – Handling all filings, court appearances, and creditor communications
- Debt Negotiation and Settlement – Exploring alternatives to bankruptcy when appropriate
- Foreclosure Defense – Protecting your home and guiding you through repayment options
With years of experience helping clients in Jacksonville, Nowack & Olson, PLLC is committed to providing knowledgeable and compassionate legal support.
