CHAPTER 7 BANKRUPTCY ATTORNEY ORLANDO
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Chapter 7 bankruptcy is the only legal method for discharging unmanageable and out of control debt. Chapter 7 bankruptcy is a process of liquidating a debtor’s nonexempt assets in order to pay off creditors. It is usually the choice of persons without a regular income, little to no assets and who have been unable to service their consumer debt. The typical Chapter 7 debtor has large unsecured debt (such as credit card debt or medical bills) and hardly any assets. One must pass a Means Test to be eligible for chapter 7 bankruptcy. And having a chapter 7 bankruptcy attorney Orlando is a good idea to help you through the process.
Filing chapter 7 provides you with a fresh start so that you can begin to immediately rebuild your finances and your credit score. Chapter 7 bankruptcy is an ideal solution for recovering from a financial hardship brought on by job and income interruption, divorce, uninsured medical expenses, or excessive credit card debt. If you have questions contact our chapter 7 bankruptcy attorney in Orlando today for a free consultation.
It is specially designed to help consumers eliminate unsecured debts such as signature loans, credit card accounts, medical debts, or other debts that are not secured by assets (such as a house or a car). For Orlando residents who have lost their home in foreclosure, it is the only legal method of eliminating a deficiency judgment, that may be entered against them after their house is sold in foreclosure for less than the loan amount.
Most people file decide to seek a discharge of their debts under Chapter 7 because they realize that it is unlikely that they will be able to pay off their debts within a reasonable period of time, if at all, based on their level of income. The fresh start provided by the bankruptcy enables them to keep the earnings from their hard work and begin rebuilding their wealth for a better financial future.
Declaring bankruptcy is not a decision you should make without careful consideration. There are many factors to consider, and it isn’t an easy decision.
If you have exhausted all your other avenues however, and you opt for this type of financial relief, you need to be aware of the stipulations required to discharge your bankruptcy.
Discharging a bankruptcy releases the debtor from most types of debts; the bottom line, once your bankruptcy is discharged, you won’t be forced to pay those debts. The discharge is a permanent legally binding order that stops any further actions on the part of lenders and collection agents.
Getting to that part is the entire point of a chapter 7 bankruptcy (a chapter 13 bankruptcy can discharge some debts, but many others won’t be, instead all or part of these will be part of a repayment plan. There can be a discharge, but only after the terms of the repayment plan are met).
The timing of a discharge is usually 4-6 months are the bankruptcy petition is filed.
After a chapter 7 discharge, the debts are eliminated permanently. After the bankruptcy court grants you a discharge, your creditors are barred from ever collecting the debt.
For any consumer bankruptcy, debtors must within 180 days before filing sign up for credit counseling and submit a certificate of completion. Only certificates from organizations authorized by the U.S. Trustee Program to provide credit counseling will be accepted.
Pre-filing counseling will usually include an assessment of your finances, a discussion on bankruptcy alternatives and the preparation of a personal budget. The counseling usually lasts for between 60 and 90 minutes. It can be conducted in person, online or over the phone.
Everyone who files for Chapter 7 bankruptcy will be required to take a ‘Means Test’. The goal of the test is to ensure persons with considerable income are not allowed to file for Chapter 7 bankruptcy. It’s a means of protecting creditors from individuals who would want to get off easy yet have the means to pay at least part of what they owe.
If a debtor’s average monthly income over the preceding six months is below Florida’s median income for a similarly sized household, they automatically qualify to file for Chapter 7 Orlando Bankruptcy Attorney. No further evaluation is required. Disabled veterans who incurred their debt while on active duty are exempt from the means test as well.
If the debtor’s income is above the state median, the testing becomes more complex. It requires a comparison of their basic monthly expenses (such as food, other household necessities, transportation and housing) to their average monthly income to determine the disposable income.
Income would not only cover the debtor’s salary (if employed) but any other sources including rental income, business income, dividends, interest earnings, pensions, unemployment income and any payment by someone else for their household expenses. If their disposable income is substantial relative to their debt repayments thus allowing repayment of at least a portion of the debts, they can only qualify for Chapter 13 bankruptcy.
Contrary to widespread belief, simply having a high income does not mean an individual will be automatically barred from Chapter 7 bankruptcy. The size of their financial obligations matters too.
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Some debts that cannot be discharged in a Chapter 7 bankruptcy:
- Most Taxes
- Child Support
- Student Loans
- Personal Injury Lawsuit Judgments Caused by Driving Under the Influence of Drugs or Alcohol
- Debts or Liabilities Arising out of Fraud or Intentional Wrongdoing
The filing of a bankruptcy petition puts an immediate stop to any action by a creditor against you, including foreclosure, repossession, wage garnishment, and harassing phone calls and letters. This is known as the automatic stay.
When filing with their district bankruptcy clerk, the debtor submits an official petition, financial history, schedules of liabilities and assets, schedules of income and expenditure, schedules of unexpired leases and contracts, and creditor mailing addresses. The schedules must contain accurate and complete information. A debtor risks being charged with perjury if some information is false or has been deliberately excluded. Both dischargeable and nondischargeable debts should be included.
CONTACT OUR CHAPTER 7 BANKRUPTCY ATTORNEY ORLANDO TODAY!
You deserve to have a healthy and prosperous financial life. Get your financial life back on track with the fresh start a successful bankruptcy can provide. Your best chance for success in this process is with an experienced chapter 7 attorney Orlando. CONTACT US to take the first step today.