Explaining the Pros of Chapter 7 Bankruptcy
bankruptcy does not mean that you are “ broke. ” alternatively, it means that your debts outweigh your assets. In chapter 7 bankruptcy, you can pay off your creditors by selling your non-exempt assets, which include :
- Your second residence
- A second vehicle that you own
- Your personal belongings, like jewelry, collections, and other valuable items
You can normally keep one vehicle, your sign of the zodiac, and versatile insurance policies that you have.
Pro: You Can Discharge Most of Your Debts
The Florida Bar says that you can discharge most of your debts if you qualify for chapter 7 bankruptcy. This means that creditors can not ask you for money, and you are not obligated to pay back certain things.
Pro: Chapter 7 Bankruptcy is a Relatively Fast Process
You want a fresh fiscal depart, and you want it nowadays. If you qualify for chapter 7 bankruptcy, it will only take a few months to complete. This is different from other filing chapters, which take anywhere from three to five years to resolve.
Pro: Chapter 7 Frees You From Future Obligations
When your assets have been liquidated, and you have a steady fiscal bridgehead, your debtors are not allowed to take your income or ask you for more money. The money you start earning after your case is over remains with you ; it does not go toward any unpaid debts. To consult with an have bankruptcy lawyer today, call 855-686-6752
The Cons of Filing for Chapter 7 Bankruptcy
Although there are many benefits to filing under chapter 7 bankruptcy, it is not for everyone. You might benefit from another file chapter ( like Chapter 13 ), depending on your situation. here are some cons to filing for chapter 7 bankruptcy in Florida :
Con: You Can Only File as an Individual
chapter 7 bankruptcy does not apply to businesses or organizations. It pertains to individuals and married couples. In some cases, spouses may even need to file separate cases.
Con: Chapter 7 Bankruptcy Does not Discharge All of Your Debts
Per the Florida Bar, Chapter 7 bankruptcy does not discharge the follow :
- Child support payments
- Some student debt
- Debts you incurred after filing for bankruptcy
- Criminal fines
- Most taxes
This chapter besides does not ensure that your co-signers do not have to pay off loans or debts, either.
Con: You Might not Pass the “Means” Test
To determine whether you are eligible for this file, you must pass something called a means quiz. Per the United States Bankruptcy Court, this test considers your dependents, department of transportation expenses, and early information about your finances. There are stern qualifications for whether you can file for chapter 7 bankruptcy. If you do not “ passing ” the means test, you might have to file for chapter 13 bankruptcy.
Con: Filing for Chapter 7 Bankruptcy is Public Record
once your case is resolved, the fact that you filed for bankruptcy will be accessible by anyone who wants to know. This could include future employers, investors, partners, and business people. While there is no shame in filing for bankruptcy, doing then could harm your future business prospects and impede your ability to secure loans.
Our Law Firm Can Determine what Chapter of Bankruptcy is Right for You
Filing for bankruptcy is nerve-racking. While trying to stay on clear of your finances, going through the filing process can quickly become a time-consuming attempt. Yet, with our team managing your case, you only have to look forward to getting a uninfected slate. We can :
- Determine which filing chapter applies to your situation
- Gather the documentation we need to file your case
- Manage communications with your creditors
- Explain your legal options
- Represent you at any meetings
There ’ s a draw of bureaucratic red tape and protocols that go into filing for bankruptcy. You don ’ t have to worry about it, though. Your bankruptcy lawyer in Florida can manage all of it for you.
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Call Bogin, Munns & Munns to Learn More
You are barely one phone call away from being free of debt. You can discuss the pros and cons of filing for chapter 7 bankruptcy in Florida with our team. Reach out to our team so we can get to work on your casing. predict or text 855-686-6752 or complete our Request a reference form