Dealing with debt can be a tumultuous and frustrating experience. Perhaps creditors are harassing you about payments you cannot make, or you are struggling with a low income that will not allow you to get your debt under control. You may have had a personal or family emergency that caused debts to rack up, and confronting your debts can be frightening and expensive.
Any individual struggling with debt will face many unique challenges in their situation. While some incorrect societal negative connotations surround it, bankruptcy is often one of the best legal tools when dealing with insurmountable debts. When it comes to bankruptcy law, you will want an expert who can help you navigate a path toward declaring bankruptcy and a team familiar with all the specifics of Chapter 7 regulations and rules on insolvency.
The team of attorneys at Badgley Law Group have the collective expertise of years of experience representing clients in Clermont, FL, navigating declaring bankruptcy. We approach our clients’ cases with compassion and understand that dealing with your debts can be stressful. That’s why we are standing by to get you the information you need in your bankruptcy case to get you back on track to your financial goals and living a debt-free life. Our team at Badgley Law Group can handle the details and guide you through the steps necessary to file for Chapter 7 bankruptcy.
While there are six variations of how to file for bankruptcy, Chapter 7 is one of the two most common and widely used forms. When filing a petition for Chapter 7 bankruptcy, repayment is not handled with a continued payment plan but instead through the filer’s nonexempt assets as the collected payment. With Chapter 7 bankruptcy, the debtor will have non-life essential possessions, such as vacation homes, family heirlooms, or expensive cars, taken by a bankruptcy trustee who will then sell these items or assets to assist in paying back creditors. It is also possible that a portion of the debtor’s property could be taken in more extreme cases.
The main reason for a debtor to file for bankruptcy under Chapter 7 is for the debtor to receive a fresh financial start, with new opportunities to recover financially. In Chapter 7 bankruptcy, liability for any debts that have been discharged is removed from the debtor if they are an individual, though this does not apply to larger debtor parties such as a business or partnership.
While an individual under Chapter 7 bankruptcy filing will typically have their debts discharged, this is not guaranteed, as in the case of discharges on a lien on property or other debts that do not qualify for discharge.
If you are looking to file for bankruptcy under Chapter 7, Badgley Law Group is here to help you defend your rights and protect key essential assets in your case.
If you are an individual, business or corporation, or even partnership that has insurmountable debts, you likely qualify for Chapter 7 bankruptcy, meaning this is one of the easiest forms of bankruptcy to qualify for. Chapter 7 indicates that any of these parties or organizations are eligible for relief regardless of the debt size, as well as whether the party with debts is solvent, has assets left after debts are paid, or is insolvent, meaning their debts are not paid off even after the selling of assets.
The debtor party would lose eligibility to file under Chapter 7 if the bankruptcy petition was dismissed because the debtor failed to appear in court or follow through with the court’s orders, though this will disqualify any filed bankruptcies, not just Chapter 7. Similarly, the file can be rejected if the debtor specifically dismissed any other potential bankruptcy cases that individual creditors reached out to in an attempt to settle the debt through acquiring assets.
To qualify and file under Chapter 7, the debtor will also need to have received credit counseling from a qualified agency within at least 180 days of the filing. This requirement can be ignored in cases where the trustee discovers that a qualified agency is unavailable to the debtor. Typically, in this case, this credit education course is replaced with a specified debt management plan, which is then filed in court.
There’s a common misconception that a debtor needs to be entirely destitute or broke to seek Chapter 7 or other options for bankruptcy. In reality, to qualify for bankruptcy, you only need to pass a minimum amount threshold of debt. Typically, the other qualifying factor involved here is an inability to repay specific debts and any lawsuits and threats such as repossessions or wage garnishments.
To start a Chapter 7 case, the debtor will begin by reaching out to the bankruptcy court and filing a petition with local bankruptcy court authorities. Debtors will also file schedules of their financial information, like their annual income, liabilities, and assets, as well as any specific contracts and leases that might apply.
As part of the filing process, debtors will also need to provide their trustees with tax transcripts as well as the tax return from the previous year. If any tax returns were filed over the duration of the case, these returns would also need to be included. This is also when you will file your debt repayment plan, as well as any other documentation or certificates received from your credit counseling.
When processing the official bankruptcy forms, you’ll need to make sure you also have lists detailing any and all creditors and the amounts owed and claimed by these creditors. Along with the debtor’s tax information, they will also need to include lists of any property they own, as well as a detailed budget of their monthly living expenses. Whether filing jointly or separately, married individuals will need to include their spouse’s information in these filings, as well.
Upon filing a claim for bankruptcy under Chapter 7, any collection actions must stop attempting to collect against any assets or property of the debtor immediately. This stay (stoppage of collection attempts) is not permanent, as it will often only cover a short period of time but is in place for all creditors to be informed of the bankruptcy claim.
If you are discharged under Chapter 7 bankruptcy, it means that you are released from any personal liability over the majority of your debts, and this further prevents any creditors from taking any additional funds from you over the discharged debts. Remember, Chapter 7 limits which specific debts can actually be discharged. Dischargeable debts include any type of unsecured debts like credit cards or payday loans, while things like student loans and tax debts do not typically apply for Chapter 7.
While you can file for bankruptcy on your own, a Clermont bankruptcy attorney can be a key ally in navigating some of the oddities and nuances of filing for Chapter 7. You can seize a number of advantages with the help and expertise of a Clermont bankruptcy attorney by avoiding pitfalls like an improper categorization of debts, fully understanding your options while filing for Chapter 7 bankruptcy, and even ensuring your paperwork and deadlines are properly followed.
When you hire Badgley Law Group, our expert team is here to help you deal with the number of specific rules and regulations and fight for the discharges you deserve.
A: Typically, around 96% of debtors that file under Chapter 7 receive discharges. This makes Chapter 7, if applicable to your debts, one of the more successful options at your disposal when filing for bankruptcy.
A: Once your filing has reached its conclusion, your debt will be discharged, which means that you are released from any personal liability as well as specifically applicable debts.
A: While a majority of debts are typically discharged from a successful Chapter 7 bankruptcy filing, there are specific debts, such as taxes or student loans, that are often not removed. It also does not end a lien on a property.
A: To calculate your Chapter 7 means, you will add up any income from the prior six months and then divide that number by 12 to help find your salary or annual income. This will include salary and wages, any tips, as well as commissions and bonuses.
If you are in need of a Clermont Chapter 7 bankruptcy attorney, Badgley Law Group is here to approach your case with the compassion and attention to detail you need and make filing for bankruptcy less daunting. Our expert team is standing by to help you maximize any possible benefits that bankruptcy offers. Reach out to get your Chapter 7 bankruptcy filing questions answered. Contact us today to schedule your consultation with a Clermont bankruptcy attorney.