Chapter 7 bankruptcy
What is Chapter 7 bankruptcy?
Chapter 7 Bankruptcy is often called the “fresh start” provision of the bankruptcy code because it allows you to wipe out all of your debt. In a Chapter 7, we show the Court that you are unable, based upon your budget, to pay the debt that currently hangs over you.
Chapter 7 is the most known type of bankruptcy. It involves the use of income and liquidation of all nonexempt assets to repay as much debt as possible. In return, the court forgives the business or individual of any and all remaining debt. In many cases, a person may go through chapter 7 bankruptcy without losing any assets, espescially if the person has no assets, or if those assets have been deemed to be exempt. This is generally the fastest way to file for bankruptcy and can be over qquickly in short order with the assistance of a skilled Florida bankruptcy chapter 7 attorney.
What property is exempt from sale under Chapter 7 relief?
Due to Florida bankruptcy laws, there are a lot of different assets that can be exempted from the liquidation process in chapter 7 bankruptcy. Some of those exemptions include the person's house, retirement accounts, benefits and many other personal or business assets. Debtors may also be allowed to keep automobiles and personal possessions such as jewelry or gifts, and can even keep money saved in the bank from wages. In many cases, an individual or business may be allowed to undergo the bankruptcy process without losing anything at all. There are a lot of complicated details that may determine what can and cannot be excluded from liquidation, however, so be sure to consult a chapter 7 bankruptcy before moving forward.