Chapter 7 Attorneys in South Florida
Serving Clients from Offices in Pompano Beach & Miami
Are you struggling with overwhelming debts? Chapter 7 may be the right choice for you. Consumer Chapter 7 bankruptcy is one of the most common forms of bankruptcy, and it can erase your dischargeable debts in an easy, straightforward way.
The professionals at Bilu Law are here to guide you through the consumer bankruptcy process. We can help you get the fresh start that you deserve.
For debt relief assistance,reach out to Bilu Law today. We offer free initial consultations!
What is Chapter 7 Bankruptcy?
Chapter 7 bankruptcy is also known as liquidation or "straight" bankruptcy. A private trustee is appointed to gather a debtor’s non-exempt assets and sell them to repay creditors a portion of what is owed.
This form of bankruptcy is typically used by individual debtors who have little to no income and with many unsecured debts.
The types of debts that can be wiped out in Chapter 7 bankruptcy include:
- Credit card charges
- Medical debts
- Past-due rent
- Personal loans
- Utility bills
The debtor can receive a discharge of the debts remaining, which means the creditors can no longer legally collect the monies that are owed. Additionally, the automatic stay from bankruptcy can put a pause on foreclosure proceedings.
Protect Property with Chapter 7 Exemptions
Many people worry about losing all of their property if they file for Chapter 7. However, there are many exemptions under Chapter 7 that can allow filers to protect most, if not all, of their property.
The state of Florida offers its own set of exemptions to qualifying residents. These exemptions include:
- Homestead - Unlimited amount of equity in qualifying homes
- Personal Property - Up to $1000 in items such as furniture, electronics, and more
- Motor Vehicle - Up to $1000 in the equity for a motor vehicle
- Wildcard - If you do not use your homestead exemption, you can exempt up to $4000 in personal property
These are just a few of the exemptions that exist when you file for Chapter 7. An attorney with experience in Chapter 7 filings can help you determine which property you can protect.
Qualifying for Consumer Chapter 7 Bankruptcy
Not all debtors qualify for Chapter 7. Before filing, you must first pass the Means Test.
The Means Test will look at your income in comparison to your state's median income for similar households. If your income falls under that median, you will automatically pass the Means Test. Otherwise, factors such as your essential expenses will be taken into account to determine your disposable income.
If you do not qualify for Chapter 7 due to your income, you may be able to instead file for Chapter 13 bankruptcy.
Let Bilu Law Help You With Chapter 7 Bankruptcy
If you are considering filing for bankruptcy, our team can help you determine if Chapter 7 is the right option for you. We can help you with property exemptions, dischargeable debts, and filing the needed paperwork. Our team is dedicated to helping you achieve debt relief and more forward in your life.
Contact Bilu Law online and request our free consultation that we reserve for prospective clients.