Chapter 7 bankruptcy is one of two primary options available to people who need debt relief under the bankruptcy code. If you file this type of bankruptcy, some of your assets will be liquidated to cover as much of your debt as possible. The court will then discharge the remainder of your qualifying debt, and you won’t be responsible for paying it anymore. However, chapter 7 bankruptcy isn’t available to every person who needs to file bankruptcy. In addition, it isn’t always the best option even when it is available. To determine whether chapter 7 bankruptcy is right for you, you need to consult a Florida Chapter 7 Bankruptcy Attorney.
Chapter 7 Bankruptcy Basics
Before you can file Chapter 7 bankruptcy in Florida, you may need to pass the means test. The means test is a test designed to ensure that you don’t have enough income to pay your debt. You will need to pass this test only if your income is higher than the median income for households of the same size in Florida. You may be exempt from this test if your debts are not primarily consumer debts, or if you are a disabled veteran who accrued debt while on active duty.
If you decide to file chapter 7 bankruptcy, you must turn over all of your non-exempt assets for liquidation. The court will distribute the proceeds from these assets to your creditors according to their priority, and the remainder of your eligible debts will be discharged. Keep in mind that certain debts cannot be discharged in bankruptcy. These debts include certain taxes, alimony, child support, student loans and fraudulent debts.
Hiring a Chapter 7 Bankruptcy Attorney in Florida
Filing chapter 7 bankruptcy in Florida is complicated, but hiring an attorney can help. A qualified chapter 7 bankruptcy attorney can help you make sure that you are able to keep as many of your assets as possible and that your case is completed quickly. Your attorney can also help you stay informed about your case as it progresses by providing updates and answering any questions you may have.
If you are considering chapter 7 bankruptcy in Florida, please contact RTB Law & Title, P.A. to schedule a consultation or learn more about this debt relief option.