Are you struggling beneath the weight of overwhelming debt due to the crushing effects of the COVID-19 Pandemic or because of divorce, medical emergency or job loss? You may feel anxious and fearful as you think about filing for bankruptcy or other debt relief options. Rest assured, our bankruptcy attorneys are here for you to help you.
About Bankruptcy under Chapter 7
With nearly a million cases filed each year, bankruptcy is one of the most common types of federal litigation. You are not alone if you are filing for bankruptcy.
If your income is too low to repay your debts, you may be eligible to file for Chapter 7 bankruptcy, which is also known as a liquidation or a straight bankruptcy. This is the most common bankruptcy filing in the United States.
Filing under Chapter 7 of the U.S. Bankruptcy Code allows you to discharge, or wipe out, unsecured debts, such as credit card debt, medical bill debt, garnishments, car and boat repossessions, lawsuits. A discharge releases a debtor from personal liability and prevents creditors from collecting on that debt. The whole process usually takes several months to conclude. We are able to help many of my clients keep their homes and assets when they file under Chapter 7. This federal debt relief option offers a complete “fresh start” for people who are being crushed by debt.
Commencement of a Chapter 7 Bankruptcy
Voluntary bankruptcy cases commence when our attorneys file the Chapter 7 petition for you, together with an array of schedules of assets, debts and other information about your financial affairs. Since 2005, and as discussed in this website in more detail, in order to qualify for a Chapter 7, you will need to pass a means test, which is a formula to limit liquidation bankruptcy to people with legitimate needs and prevent those who can pay back their loans from discharging their debts. The means test is a simple calculation that compares your average monthly income earned over the last six months to your average allowed expenses. The balance is your “disposable income.” If this amount is too high to qualify for Chapter 7 bankruptcy, you may still qualify to discharge some debts, and pay back other debt in manageable payments by filing for Chapter 13 bankruptcy.
Our filing of your bankruptcy petition in Florida Federal Bankruptcy Court operates as an “order of relief”, without the requirement of further court action. The filing of your petition triggers an automatic stay stopping nearly every type of action a creditor might try to collect, including lawsuits, repossessions and telephone calls.
Discharge of Debt
In Chapter 7 cases, debtors are supposed to give up their assets in exchange for being released from liability for their debts. However, debtors have never been required to give up all of their assets. Through several avenues, including exemptions (such as homestead residential property), redemption and reaffirmation, our attorneys fight to make sure our clients keep a large share, if not all of their assets.
As your bankruptcy lawyer, our goal is to make sure you obtain relief from your debts through “discharge” of your debts. Discharge prohibits creditors from ever taking further action to collect the prepetition debts. This is why it is critical that you advise us of all debts, no matter how big or small, that you owe. Bankruptcy discharge provides you with a valid legal defense in any collection action brought by creditors. This is the essence of your “fresh start”.
Our Florida attorneys right fight in bankruptcy court for your financial freedom and your family’s well-being. We file bankruptcy cases in Broward, Palm Beach, Martin, St. Lucie and Okeechobee counties.