What is Chapter 7 Bankruptcy?
Deciding which Chapter of bankruptcy Florida Protection to file is a difficult decision. How do you know if Chapter 7 bankruptcy is the right choice for you? This is a liquidation bankruptcy that can be used by both individuals or businesses who owe more than they can pay off in a reasonable amount of time. Liquidation means that property owned by the person or company will be sold and used to repay debt. Any debt that is not paid off with the money from assets sold will be discharged. It will wipe out most of your unsecured debt, not including student loans or debt accrued from late child support. Here are a few questions to ask yourself to determine if Chapter 7 bankruptcy may be right for you. You should always consult a Lawyer for more information and to determine if this is the correct type of bankruptcy to file (Chapter 7 Vs. Chapter 13).
Are You Overwhelmed with Debt and Have Few Assets?
Chapter 7 bankruptcy involves a liquidation of most of your assets and dividing up the resulting money between your creditors. The less you own, the less you stand to lose by filing Chapter 7. You can expect to lose property, boats and expensive cars (usually over $1000). Tools that you need to continue working are usually protected from liquidation. A bankruptcy attorney can help you determine which assets you may be eligible to keep.
Are you unemployed and or burdened with outstanding medical bills you feel you will never be able to pay? These are the most common reasons for filing for Chapter 7 bankruptcy. Chapter 7 bankruptcy protection will eliminate all of these debts and give you a fresh start.
You should always contact a Bankruptcy attorney Jacksonville FL to determine if you need to file for bankruptcy, and ensure that you file everything correctly for the Chapter of bankruptcy protection that is best for your personal situation.
Jacksonville Bankruptcy Attorneys Explain Liquidation
There are two chapters of the U.S. Bankruptcy Code under which an individual can file. To be eligible for Chapter 7, a person must first take a means test proving that their disposable income is significantly lower than the national average (or nonexistent). If they do not have adequate or steady income, Chapter 7 bankruptcy could allow them to liquidate their non-exempt assets and possessions and apply it toward their debts. The remaining balance of the debt will then be discharged by the lender, allowing the consumer to find financial freedom once more.
Exemptions for Chapter 7 Bankruptcy in Florida
The bankruptcy code allows each state the option of listing exempt assets and property for Chapter 7 liquidation, which the state of Florida has done. You must have lived in the state of Florida for at least 730 days in order to use Florida’s exemptions, which include unlimited homestead exemption if you’ve owned the property for at least 1,215 days, personal property exemption of up to $1,000, motor vehicle exemption up to $1,000, and more. Learn more about your options under Chapter 7, as well as any alternatives to bankruptcy that may be more beneficial, by speaking with a Jacksonville bankruptcy lawyer from our firm.
Retain a Jacksonville Bankruptcy Lawyer
Contact our firm today to set up your complimentary consultation. The Law Offices of Justin McMurray, P.A. has served the Jacksonville area for 13 years and has handled thousands of cases for clients in need of debt relief. We can help you negotiate a loan modification or debt settlement or help you decide what chapter you can file under to eliminate your unmanageable debts. We offer affordable flat-rate fees and flexible payment plans, so don’t wait. Contact our firm today for the knowledgeable counsel you need!