This page was written, edited, reviewed & approved by Emil J. Fleysher following our comprehensive editorial guidelines. Emil J. Fleysher, the Founding Partner, has 15+ years of legal experience as a bankruptcy attorney. Our last modified date shows when this page was last reviewed.
Chapter 7 is a fresh start for your financial life. At Fleysher Law Bankruptcy and Debt Attorneys, we help clients throughout Florida get relief from crushing debt. Under Chapter 7, the majority of unsecured debts can be discharged. The bankruptcy court may sell some nonexempt property to pay creditors, but most people keep their essential belongings through exemptions.
What happens when you file bankruptcy Chapter 7? In this article, you'll learn about the bankruptcy process, how it affects your credit record, what property you can keep, and the differences between Chapter 7 and Chapter 13. We'll also cover which debts get discharged, the timeline, and what to expect. As Florida bankruptcy lawyers with over 20 years of experience, we know how to guide you through this legal process.
Filing for Chapter 7 bankruptcy lets you eliminate most debts through a court order. This eliminates the need to repay credit card balances, medical bills, and other unsecured debts that you owe money on. A bankruptcy trustee, appointed by the court, evaluates your assets to determine if any must be sold to repay creditors.
Most Chapter 7 filers keep all their property thanks to bankruptcy exemptions. These laws protect certain property from being taken. Florida exemptions are quite generous and include your home, car (up to a certain value), and personal property. At Fleysher Law, we make sure you understand what happens in the bankruptcy process before filing.
The journey through Chapter 7 bankruptcy involves several key steps after your case is filed with the bankruptcy court. Let's look at three important parts of the process that will shape your experience during this financial reset.
One of the first benefits you'll notice when filing for bankruptcy is the automatic stay. This legal protection starts the moment we file your case. Once the automatic stay takes effect, it stops collection efforts and legal actions, and even pauses foreclosure proceedings. It's like hitting a pause button on all your debt problems.
We recently helped a client facing foreclosure who was getting many collection calls daily. The day we filed her bankruptcy, those calls legally had to stop. Her mortgage company couldn't move forward with taking her house, and she finally got some breathing room. This relief from debt collectors is often when our clients first feel the weight lifting off their shoulders.
The bankruptcy trustee holds a crucial role in Chapter 7 filings. This person is appointed by the court to review your bankruptcy forms, look for nonexempt property, and make sure you're not hiding assets. The trustee works for the bankruptcy court to ensure the rules are followed.
Your trustee will check your paperwork against your tax returns and bank accounts to verify everything is correct. They may sell any nonexempt property to pay back some of what you owe. This means some of your debtor's assets could be used to satisfy remaining debts. Being honest with both your bankruptcy attorney and the trustee is essential.
If you try to hide assets, you could lose your right to have debts discharged or face criminal charges. We prepare you to work with the trustee so there are no surprises. Additionally, once the bankruptcy filing is in place, wage garnishments and other collection actions to recover money you owe will typically stop immediately.
About a month after filing, you'll attend the "341 meeting" or "meeting of creditors." Despite the name, creditors rarely show up. Instead, you'll meet with your bankruptcy trustee, who will ask questions about your debts, assets, and the information in your bankruptcy forms. This meeting usually lasts just 5-10 minutes.
The trustee will ask you to show your ID and verify your Social Security number. They'll ask if the information in your bankruptcy papers is true and if you've listed all your property. We prepare you thoroughly for this meeting, reviewing likely questions and practicing your answers. Our clients often tell us the meeting was much easier than they expected.
Filing for bankruptcy requires the following specific steps in the right order:
The entire bankruptcy process typically takes 3-5 months from filing to when the court discharges your debts. During this time, your bankruptcy attorney handles communications with creditors and the court while guiding you through each step.
Filing for Chapter 7 bankruptcy will appear on your credit report for 10 years from the filing date. It can lower your credit score, particularly if it was previously high. But if you were already behind on payments, the impact might be less severe.
The good news is that rebuilding your credit history after bankruptcy is possible and often happens faster than people expect. Many of our clients qualify for new credit cards within a year after discharge, and some can get mortgage loans within 2-3 years. The key is to start rebuilding right away by paying all bills on time, getting a secured credit card if needed, and keeping your debt levels low. Filing for bankruptcy lets you reset and rebuild your credit.
Florida's bankruptcy law includes generous exemptions that protect much of your property from being taken by the bankruptcy trustee. The most powerful is the homestead exemption, which protects your primary residence with unlimited value as long as you've owned it for at least 1,215 days. This means most Florida homeowners can file Chapter 7 without risking their homes.
Beyond your home, Florida law protects:
If federal exemptions were available in Florida (they're not), you might have different options. However, Florida's state exemptions are often more generous than federal exemptions, particularly for homeowners. We help clients use these exemptions to keep their property while eliminating debt.
Chapter 7 and Chapter 13 bankruptcy offer two different paths to debt relief. Here's a simple comparison to help you understand which might be right for you:
Chapter 7 Bankruptcy:
Chapter 13 Bankruptcy:
How They Handle Your Debts:
We help clients choose the right bankruptcy type based on their specific situation. Your income, assets, types of debt, and financial goals all affect which option works best for you.
A bankruptcy discharge eliminates your legal obligation to pay many types of debt. Most credit card debt, medical bills, personal loans, old utility bills, and payday loans can be wiped out completely. Some older tax debts may even be eligible for discharge if they meet specific criteria. This freedom from debt gives you the fresh start that bankruptcy is designed to provide.
Not all debts go away in bankruptcy, though. These certain debts remain:
We carefully review your debts before filing to give you a clear picture of what will and won't be eliminated. This helps you decide if bankruptcy is right for your situation.
Credit card debt is frequently wiped out in Chapter 7 bankruptcy, making it a top choice for relief. When the court issues your discharge, you are no longer legally responsible for paying these balances. Credit card companies must stop all collection efforts and can never try to collect these discharged debts again. This relief can be life-changing if you're struggling with high-interest credit card debt.
Be careful about credit card use before filing for bankruptcy. Charges for luxury goods over $725 made within 90 days of filing or within 70 days of filing cash advances of $1,000 or more are considered to be fraudulent. This means these debts might not be discharged. Also, if you made charges knowing you would soon file bankruptcy, the judge decides this may be fraudulent. We advise stopping credit card use several months before filing.
A typical Chapter 7 bankruptcy case in Florida follows this timeline:
From start to finish, most Chapter 7 cases take 3-5 months. We work to move your case along efficiently while ensuring everything is done correctly. Throughout this process, you're protected by the automatic stay from collection actions, giving you peace of mind.
Filing for bankruptcy can feel overwhelming, but knowing what to expect makes it less stressful. Many clients tell us they put off filing because they felt ashamed. Remember that bankruptcy is a legal right used by millions of Americans each year. It exists to give honest but unfortunate debtors a second chance.
During the bankruptcy process, you must be transparent about your finances. This means disclosing all assets, debts, income, and financial transactions. While this level of financial exposure can feel uncomfortable, the process must work correctly. We provide support throughout this journey, helping you understand each step and advocating for your interests.
The practical aspects of bankruptcy filing involve several key considerations that can impact your experience. From understanding costs to avoiding common pitfalls, being well-informed helps ensure your case proceeds smoothly.
Filing Chapter 7 bankruptcy involves several costs:
At Fleysher Law, we offer reasonable payment plans to make filing for bankruptcy affordable. Everyone deserves the fresh start bankruptcy provides. Our fees are transparent – we'll tell you exactly what your case will cost before you commit. While some people try to file without an attorney to save money, this often leads to mistakes that can cost much more in the long run.
When filing for bankruptcy, several critical errors can derail your case:
These mistakes can lead to your case being dismissed, forcing you to start over and pay new filing fees. Working with an experienced bankruptcy attorney helps you avoid these pitfalls.
Working with a bankruptcy attorney makes the entire process simpler. We handle all the paperwork, ensuring your bankruptcy forms are filled out correctly. We communicate with your unsecured creditors, so you don't have to deal with collection calls. We prepare you for your 341 meeting and attend it with you, handling any questions that arise.
We know how to use bankruptcy exemptions to protect your property and provide free legal help throughout your case. Our expertise saves you time, reduces stress, and gives you peace of mind knowing your bankruptcy case is being handled properly. With Fleysher Law on your side, you can focus on moving forward while we take care of the legal details.
Chapter 7 bankruptcy offers several advantages:
The disadvantages include:
Despite these drawbacks, for most of our clients, the relief from debt far outweighs the downsides. We help you weigh these factors based on your specific situation.
The moment you file for bankruptcy, the automatic stay stops debt collectors from contacting you. They can't call, send letters, file lawsuits, garnish wages, or take any action to collect debts included in your bankruptcy. This protection gives you immediate relief from collection harassment.
If a debt collector contacts you after filing, let them know about your bankruptcy and give them your case number and attorney information. If they persist, they're violating federal law and the court order. Keep records of any contact attempts, including dates, times, and what was said. We can help you file a complaint with the bankruptcy court if collectors ignore the automatic stay. The court takes these violations seriously.
To qualify for Chapter 7 bankruptcy, you must:
If you have security interest debts like mortgages or car loans, you'll need to decide whether to surrender the property, redeem it, or sign a reaffirmation agreement. We can help you determine if you qualify for Chapter 7 and explore other debt-relief options if you don't. Our goal is to find the best solution for your financial situation.
Taking the first step toward financial freedom is just a phone call away. At Fleysher Law, we offer free legal help through bankruptcy consultations, where we'll review your situation and explain your options. Our experienced team has helped thousands of Florida residents eliminate debt and get a fresh start through Chapter 7 bankruptcy. We understand how stressful debt problems can be, and we're here to help. Call us today to schedule your free consultation. Virtual appointments are available for your convenience.
Emil specializes in consumer bankruptcy, debt settlement, and mortgage modification, offering a holistic approach to solving mortgage and debt problems. Emil listens to clients, understands their circumstances and goals, and helps them make the right choices by presenting all options and contingencies.
He is dedicated to helping South Floridians regain their financial freedom from overwhelming debt caused by high interest credit cards, bad mortgage loans, and uninsured medical expenses.
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