Chapter 7 considerations

On behalf of Furr & Cohen, P.A. posted in chapter 7 on Friday, July 22, 2016.

When filing for bankruptcy, you need to do your research. You want to make absolutely sure that this is the right decision for you. While Chapter 7 is a largely popular form of personal bankruptcy, is it a fit based on your primary needs and objectives?

Let’s explore. With Chapter 7 bankruptcy, a trustee is assigned to your case. That trustee can and will take whatever nonexempt property is necessary to generate the income to satisfy your arrangements with your creditors. Some debts will not be discharged, and you will still be obligated to pay those. Debts that are not discharged are usually any child support obligations, tax debts and student loans. Also, if you have debts with cosigners who are not filing bankruptcy, then they may be held liable.

Alternatively, with Chapter 7 bankruptcy, most debts are discharged. You also get to keep your income. The only money you may lose is various settlements or inheritance that comes to you within approximately six months of filing bankruptcy. And that’s it; there is not a repayment plan, and all debts you are able to discharge are discharged, without regard to amount, within roughly 90 days.

As you do your research, it would be beneficial to put in a call to a local bankruptcy law attorney. Florida has laws regarding possible exemptions that your attorney may be able to help you with. When making the decision to file for bankruptcy, enlisting the help of an attorney may be the difference in retaining ownership of the things you value most while eliminating the maximum amount of debt. Your attorney may be able to work with you to ensure you truly get the clean slate you need.