Chapter 7 Bankruptcy
What Is Bankruptcy?
Bankruptcy is a process that is allowed by the federal law, and administrated through federal Courts (as opposed to state courts), designed to allow businesses and consumers eliminate certain debts, refinance and restructure other debts, and generally reorganize financial affairs to allow for a financial fresh start.
Two Types Of Bankruptcy For Consumers
For most consumers who are fighting foreclosure in Florida, federal bankruptcy law permits two types of bankruptcy filings – Chapter 7 and Chapter 13. Individuals do not choose which type of bankruptcy they want, as much as they either qualify for Chapter 7 or they qualify for Chapter 13. The qualifications are based on a number of factors, but a general rule of thumb is that if an individual earns less than the average income of the county in which he or she lives are eligible to file for Chapter 7 bankruptcy, whereas individuals earning more than the average income in their county must file for Chapter 13 bankruptcy.
Chapter 7 Bankruptcy Basics
Chapter 7 Bankruptcy allows a homeowner, facing foreclosure in Florida, who make less money than the average income in their county to discharge (erase) debts, financial obligations, bills, and stop collectors from calling and harassing them. Depending on a homeowner's income, it may allow a homeowner to keep most of his or her home, assets and personal property, while at the same time giving a homeowner a financial fresh start without being dragged down by certain past debts.
Bankruptcy filing also provides a temporary, short term “stay” or a pause to any debt collection litigation, such as foreclosure. But it is important to know that merely filing for bankruptcy will not completely stop foreclosure proceedings.
Chapter 7 Is Not For Everyone: Hire Efficient Foreclosure Defense In Florida!
Here's where having information on Chapter 7 Bankruptcy Information helps: Chapter 7 Bankruptcy is not for everyone - and not everyone is eligible. There are also consequences involved with a Chapter 7 Bankruptcy filing – for instance, your credit score can be adversely affected, there may be negative repercussions if the homeowner later applies for a new job or credit, and a bankruptcy will stay on your record for 10 years. Certain debts will remain, such as student loans, child support and alimony payments. And debts secured by assets, such as your home mortgage loan or a car loan, will remain as well; if the bankruptcy Court determines that you cannot afford to continue to make payments on theses secured assets, the bankruptcy Court may order they be liquidated.
Discuss Your Options With The Best Foreclosure Attorneys In Florida Today
Chapter 7 Bankruptcy exemptions and filing is complex, but it can provide a homeowner with powerful tools and options to save their home and make a fresh start with their lives. It is important to discuss the pros and cons of a Chapter 13 Bankruptcy to determine if it may be a suitable option for you. Call the experienced attorneys at the Byrne Law Group today at 813-413-6565 to discuss your case and your options!