What is Chapter 7 Bankruptcy?

Written By: Emil FleysherNovember 12, 2021

Our office receives many calls and inquiries from potential clients looking for information about Chapter 7 Bankruptcy. If you’re confused about the rules, options, benefits, and pitfalls in Ch. 7 Bankruptcy you are not alone. Before submitting your Ch. 7 case to the bankruptcy court, you should have a firm understanding of what to expect. You've got questions, and we've got answers. We’ve provided some important things you should consider before filing your Ch. 7 bankruptcy case in Florida.  

Chapter 7 Bankruptcy

The goal of Chapter 7 bankruptcy is to wipe out the honest but unfortunate debtor’s unsecured debt. And, to provide a clean slate. From the initial case filing to the final discharge. The entire process for Chapter 7 bankruptcy typically takes 90 to 120 days. At the Law Office of Emil Fleysher, P.A., our attorneys have extensive knowledge and expertise in resolving both basic and difficult bankruptcy cases.

In a Chapter 7 bankruptcy, you can keep exempt assets; your homestead (primary residence), any retirement or pension accounts, up to $1,000 in automobile equity, up to $1,000 in personal property, and for filers who do not own their home, up to $4,000 in a wild card exemption that can be applied to whatever property the debtor chooses. Once your case is filed, a trustee is appointed to review your documents, finances, and assets. If the trustee determines that you have assets that are unexempt and can be sold to make a meaningful distribution to your creditors, those assets can be taken and sold (or you can arrange to redeem or buy them back from the trustee).

If the trustee determines there are no assets to sell, the case comes to a conclusion and is classified as a no-asset case. Approximately 60 to 90 days later, the Bankruptcy Court will enter your discharge. Any debts listed in your bankruptcy petition will be forever forgiven. Moreover, creditors will get prohibition from ever contacting you about those debts again.

Why Consider Chapter 7 Bankruptcy?

It is usually recommended to file Chapter 7 bankruptcy if you are unsure about being able to pay your bills. We typically advise clients to file Chapter 7 bankruptcy when their debts exceed half of their annual income and they do not risk losing any important assets. Our team at Fleysher Law excels at helping clients navigate the minefields of Chapter 7 Bankruptcy and avoid unpleasant surprises. All aspects of your case go through examination to ensure that you understand your rights and options for resolving your debt. When done right, filing Chapter 7 bankruptcy puts you on a fast track to a fresh start.

Are You Eligible for Chapter 7 Bankruptcy?

The types of debtors in Ch. 7  bankruptcy range from wage earners, to unemployed workers, to sole proprietors or independent contractors with personal liability on business debts, married couples filing jointly, married persons filing individually without their spouse, etc. No matter your situation, to file for Ch. 7 Bankruptcy you must pass the means test to qualify for Ch. 7 Bankruptcy. The Means Test is there to determine whether or not you have the means to repay at least some fraction of your debt in a Ch. 13 reorganization plan. The Means Test factors in your gross income, your household size, your living expenses, and the average median income in your geographic area to determine whether you pass or fail. If you pass the Means Test and have not received a bankruptcy discharge in the last 8 years, you should qualify for a Ch. 7 Bankruptcy discharge.

Call The Law Offices of Emil Fleysher, P.A.

So, are you ready to get the facts on filing for Ch. 7 bankruptcy? If so, contact us now to speak with an experienced bankruptcy attorney from The Law Offices of Emil Fleysher, P.A. Call us today at 888-886-0020 to schedule a consultation.

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