Chapter 7 Bankruptcy in Florida | Process Explained
Chapter 7 Bankruptcy
Chapter 7 bankruptcy provides immediate relief to your financial problems. First, all collection activities will stop and you will be able to relax. This is accomplished immediately upon the filing of the Chapter 7 bankruptcy petition because a Chapter 7 bankruptcy triggers the automatic stay. This means that you won't get those annoying phone calls anymore, and the mail won't be stuffed with collection letters. In fact, you should have a very clear picture of your finances and will be able to start building for the future.
A Chapter 7 bankruptcy not only stops the phone calls, but will also provide immediate relief for all debt collection, lawsuits, wage garnishment, vehicle repossession and even foreclosure proceedings. However, in a Chapter 7 bankruptcy, some of these protections are temporary and will expire with the end of the automatic stay, so you careful planning with an experienced chapter 7 bankruptcy attorney is a must.
When most people think of bankruptcy, it is a Chapter 7 bankruptcy that comes to mind. The basic idea in a Chapter 7 bankruptcy is to wipe out or discharge your debts in exchange for you giving up your non-exempt property to the bankruptcy trustee to be sold, with the money distributed to your creditors. However, most people find that even in a Chapter 7 Bankruptcy, they can keep almost all of their property because of Florida's homestead and bankruptcy exemptions.
Do you Qualify for a Chapter 7 Bankruptcy:
To determine if you qualify for a Chapter 7 Bankruptcy the court will look at your total household income as well as allowed expenses and the type of debt that you are seeking to discharge. It is a myth that you have to be completely broke to file a Chapter 7 bankruptcy in Florida. Moreover, you are not precluded from filing a Chapter 7 if you own property, own a vehicle or other assets. There are many factors that determine if you qualify for Chapter 7 Bankruptcy so our Chapter 7 bankruptcy attorney will evaluate your situation and make that determination for you.
Even if you otherwise qualified for a Chapter 7 bankruptcy, a bankruptcy court may dismiss your case if it thinks you've tried to cheat your creditors or conceal assets. Red flags typically occur when you transfer assets to friends or relatives, run up debts immediately before filing, concealing property or money and generally being untruthful or deceptive in any filing with the court. Another benefit of hiring a Chapter 7 bankruptcy attorney is the pre-bankruptcy planning that will maximize the benefit of the Chapter 7 and prevent common mistakes that would disqualify you from chapter 7 bankruptcy relief.