More than Lawyers.

The decision shouldn't be easy,  but sometimes the hole you've dug is simply too deep.  The bills are piling up. The collection agencies are calling.  At night you lie awake, wondering how you're ever going to cope with your debts.

At what point does it make sense to file for bankruptcy?

There's no one-size-fits-all answer to that question. In purely financial terms, the answer depends on:

• Your current situation.

• Your future prospects.

For now, let's explore the purely financial and legal aspects of bankruptcy.

HOW THE PROCESS WORKS:

A bankruptcy filing halts, at least temporarily, all collection activities, from phone calls demanding payment to more serious actions including foreclosure, wage garnishment and levies against your bank accounts.

What happens next depends on the type of bankruptcy you file:

• In the most common type of filing, Chapter 7, your credit card balances, medical bills and most other unsecured debts are erased entirely. (Certain other unsecured debts, like student loans and recent taxes, typically can't be wiped out in bankruptcy.) Technically, some of your property could be taken and sold to satisfy your creditors; the types of property that could be taken vary by state. In some states, for example, only a small amount of home equity is protected from creditors, while in others like Florida and Texas the amount of equity that can be sheltered in a home is virtually unlimited.

• In Chapter 13 filings, you're allowed to keep property that might otherwise be used to pay your creditors. In return, you agree to a plan to repay at least some of your debts over the next three to five years. If you complete the plan, the remainder of your eligible unsecured debt is legally erased.

Under 2005 federal bankruptcy reform legislation, you may be required to submit to a "means test" if you file for Chapter 7 and your income exceeds the median for your area. If the means test determines you can afford to repay some of your debt, you'll be shunted into a Chapter 13 repayment plan.  The most common reasons for filing are job loss, catastrophic illness, divorce, business failure, high credit card fees and predatory lending.  Please don’t wait any longer, contact my office immediately and I will help you determine the best option available and answer questions such as:

          -  Will I lose my house?

          -  Can I stop foreclosure?

          -  What will happen to my credit?

          -  Can I stop repossession of my car?

          -  I do not feel comfortable filing for bankruptcy?

          -  Can I stop creditors from garnishing my salary?

          -  Can I stop threatening calls from collection agencies?

          -  My driver's license was suspended because of an accident.  Can it be reinstated in  

              bankruptcy?

Contact the Law Office of Maggie Jo Hilliard, P.A. at (904) 247-7600 today to schedule a consultation.