Mounting debt quickly becomes overwhelming - causing unbelievable pressure and leading to all sorts of unintended results. If the creditors are calling and your debt is beyond control, you may need to file for bankruptcy. Orlando, Florida bankruptcy attorney Matt Tabakman can help. Call 407-926-0324 or contact us for a free initial consultation.
How Chapter 7 Bankruptcy Works
All legally dischargeable debts are forgiven in a Chapter 7 Bankruptcy. In exchange for that forgiveness, however, you must surrender any non-exempt property and forfeit the proceeds of that property to be divided among your creditors. Exempt assets are protected assets that individuals get to keep, and a lot of property is considered exempt by the Bankruptcy Court. Most individuals who file for Chapter 7 bankruptcy keep most of their property.
Know Which Assets Are Exempt
Exempt assets are property that individual Chapter 7 Bankruptcy filers get to keep - property that is not affected by the filing of a bankruptcy. Determining what property is exempt is complicated, and you should talk to your attorney about your particular property. In many instances, individuals are able to keep their home, depending on whether or not they are able to catch up with their mortgage payments to avoid foreclosure. If you own a homestead, you should be able to keep up to $1,000 worth of personal property plus $1,000 of equity in a car. If you don't own a home, you can keep up to $5,000 of personal property (including $1,000 of equity in a car). Bear in mind that these numbers refer to the current market value of your property. Your property would be worth much less at a garage sale than when you first bought it, so a lot of property can fit within the exemption limits.
Why Do Individuals File for Chapter 7 Bankruptcy?
While creditors and lenders would say that poor financial responsibility leads consumers to file Chapter 7 Bankruptcy, actually very few bankruptcies result from irresponsibile behavior. Most bankruptcies are triggered by forces beyond the individual's control, such as unexpected medical bills, loss of employment or changes in the economy.
Chapter 7 Bankruptcy might be a good option for consumers who don't have a large amount of non-exempt assets. Consumers with many assets, who don't wish to risk having to turn that property over to the Bankruptcy Court, might want to consider filing for Chapter 13 bankruptcy instead. Talk to your bankruptcy lawyer to find out which option is best for you. Attorney Matt Tabakman will assist you in determining whether Chapter 7 Bankruptcy is the right choice for you, and guide you through the entire process from start to finish. To schedule a free initial consultation, call for an appointment at 407-926-0324 or contact us.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
