Central Florida Chapter 7
We Respond Promptly to Questions and Concerns.
If you have been worried about your finances for a long time, and even struggling to pay bills and debts, you will be greatly relieved to discharge most of your debt and start over. This is the advantage of Chapter 7, versus Chapter 13. Contact Us »
Chapter 7 is known as “liquidation” as opposed to “reorganization” of Chapter 13 and other forms of bankruptcy. It is the most common form of bankruptcy because it is a “fresh start.” Most debts are discharged and you can keep certain exempt property. Child support, certain taxes, and student loans are generally not dischargable. Secured debts are those attached to a piece of property such as a car or home. These items may have to be surrendered. Credit card-debt discharge may be possible, as it is unsecured by any property. Creditors must immediately stop attempting to collect debts, and must contact your attorney instead of you.
Ready To Respond to the Tough Challenge or Decision You Face
It has become somewhat more complicated — and slightly more difficult — to qualify, since the law was changed in 2005. Your household income must be under the median income for a household of the same size in the state in which you live. Contact us for assistance, and to see if you qualify under the means test.
Another disadvantage is that a Chapter 7 bankruptcy stays on your credit report for 10 years, as opposed to seven years for Chapter 13. You must undergo budget and credit counseling prior to filing.