Chapter 7 bankruptcy is known as liquidation bankruptcy because the borrower’s property is liquidated, or sold, and the proceeds are distributed among whom the creditor’s debt is owed. Chapter 7 is the most common type of bankruptcy, and exemptions apply that can help protect a borrower’s assets such as their home or vehicle. If you cannot pay your medical or credit card bills, or you are tired of endless phone calls and letters from debt collectors, this type of bankruptcy might be right for you. Below, our Pembroke Pines Chapter 7 bankruptcy lawyer outlines the process, the eligibility requirements, and more.
What is Chapter 7 Bankruptcy?
Documents for filing bankruptcy Chapter 7
Both businesses and individuals can file for Chapter 7 bankruptcy. Property classified as non-exempt is liquidated to repay the debt. However, many Chapter 7 bankruptcy cases are deemed no-asset cases, which allows borrowers to eliminate their debt without losing any assets. All states, including Florida, also outline certain exemptions that can protect property and those available in Florida are some of the most generous in the entire country. From start to finish, the Chapter 7 bankruptcy process takes approximately four months to complete.
What Debt is Eligible for Discharge in Chapter 7?
Filing for Pembroke Pine Chapter 7 bankruptcy is a great way to clean the financial slate and start fresh. A successful case by a Pembroke Pine Chapter 7 lawyer can eliminate many types of debt, including:
- Credit card debt
- Medical debt
- Old utility bills
- Payday loans
- Tax debt, in certain circumstances
- Personal loans
- Small business loans
- Vehicle repossession debts
Although you can eliminate much of your debt through a Pembroke Pines Chapter 7 bankruptcy case, the process will not discharge certain types of debt. These are as follows:
- Most student loan debt
- Alimony
- Child support
- Income tax debt
- Property tax debt
A Pembroke Pines Chapter 7 bankruptcy lawyer near you can advise on your case, the exemptions that apply, and the debt you are carrying that you can discharge.
Qualifying for Pembroke Pines Chapter 7 Bankruptcy
Regardless of the type of bankruptcy being filed, all borrowers must qualify to discharge or restructure their debt. A Pembroke Pines Chapter 7 bankruptcy has some of the strictest qualifying requirements, including the means test. The means test will compare your household income to the average income for a family of your size in Florida. Your average monthly income for the six months prior to your bankruptcy filing is taken into consideration during the means test.
The means test was added to the U.S. Bankruptcy Code in 2005 to limit abuse in the bankruptcy system. The purpose is to determine whether a borrower has sufficient disposable income to repay their debt. If you do not pass the first part of the means test, there is a second part you may qualify under. If you still fail the means test, you cannot file Chapter 7 but may qualify for another type of bankruptcy, such as Chapter 13 banruptcy.
You are also required to successfully complete a credit counseling course as part of the Florida Chapter 7 bankruptcy case. You will receive a certificate once you have completed the course, and this is submitted to the court.
When Should You File Chapter 7 Bankruptcy in Pembroke Pines?
When considering bankruptcy, many people first think of the bankruptcy process and the types of debt they can discharge. However, another important factor is when you file. The means test will examine your income for the six months before you filed bankruptcy. If you have just received a bonus at work, that will impact the calculation used during the means test, and it may mean you will not qualify even if you do not regularly receive a bonus.
Additionally, if you feel as though your debt situation is temporary, you may want to consider negotiating with your creditors instead of filing for bankruptcy in Pembroke Pines. You also should not use your credit cards for approximately four months before you file. Making large purchases soon before you file can hurt your case, and may result in it not being successful.
Just as there are times when you should not file, there are also certain times when it may be the right time. If you do not own property that is not exempt, and you are currently facing a civil lawsuit, a wage garnishment, license suspension, or you cannot repay your unsecured debt, filing Chapter 7 bankruptcy in Pembroke Pines now may be your best option. The sooner you file bankruptcy in Pembroke Pines, the sooner the harassing phone calls from creditors and debt collectors will stop.
How Often Can You File Pembroke Pines Chapter 7?
Unless there is a court order to the contrary, you can file Chapter 7 as many times as needed. Still, if you have previously discharged your debt in Chapter 7, you must wait eight years from the date of the last filing. If eight years have not passed, you may be eligible to file another type of bankruptcy, as each type has its own time restrictions.
How Much Does it Cost to File Chapter 7 in Florida?
As of 2023, the fee to file Chapter 7 is $338. You must pay the fee at the time you file. You may be able to ask for the fee to be waived if your income is more than 15 percent below the poverty line. In Florida, you can also apply to spread the fee out over a number of installments.
The credit counseling course you are required to take can be completed over the phone or online. Prices for the course range between $10 and $45, but some providers also waive these fees for low-income borrowers. Attorneys also charge different fees, but they are typically quite affordable and going through the process without legal representation can also cost you much more in the end. We have helped hundreds of bankruptcy clients through Chapter 7 in Florida. You can hear or read some of their testimonials to see how we can help you too.
Our Chapter 7 Lawyers in Pembroke Pines Can Help with Your Discharge
If you are carrying a large amount of debt you cannot repay, our Pembroke Pines Chapter 7 lawyers can help. At Loan Lawyers, our skilled attorneys can advise on all aspects of your case and give you the best chance of success. Call us now at (954) 523-4357 or contact us online to schedule a free case review and to learn more about your legal options.
Pembroke Pines Chapter 7 Bankruptcy Reviews
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