Sometimes we face unexpected challenges in life and coping with the stress of unexpected financial hardships is one of the most difficult challenges many people face. The attorneys at The Storay Advocacy Group, P.A. understand most hard-working people do not intend to fall into the dire financial situations they sometimes find themselves in. If you are currently facing unexpected financial difficulties such as foreclosure, debt collections, or unable to pay some or all of your bill, then considering bankruptcy may be the solution and fresh start you need to get out from under your financial burdens. Our caring attorneys are here to help you determine if bankruptcy is right for you and to guide you through every step of the bankruptcy process.

Is Chapter 7 bankruptcy right for me?

Making the decision to file for bankruptcy is never easy. However, filing for bankruptcy is a solution that provides relief to many serious financial problems. Chapter 7 bankruptcy is the bankruptcy option with the quickest relief; the average case resolving within about three months. A Chapter 7 bankruptcy is in many ways easier than other bankruptcy chapters because most debts are completely discharged including credit cards, medical bills, balances on repossessions, short sales, signature loans, deed in lieu, and foreclosures.

In addition, it does not require an alternative repayment plan for the debtor to maintain. Instead, nonexempt property and assets may be liquidated and used to pay creditors. However, most people going through bankruptcy do not have the right assets to settle with creditors so many individual bankruptcy cases are closed without the trustee selling any assets belonging to the debtor.

Every client’s circumstances are unique, so you should speak with a knowledgeable bankruptcy attorney to help you determine if Chapter 7 bankruptcy is right for you.

What can I not have discharged in Chapter 7 bankruptcy?

You cannot use a Chapter 7 bankruptcy to dissolve taxes, student loans, child support, alimony, or court fees, fines, and penalties.

Will I be able to keep my house and car if I file Chapter 7 bankruptcy?

A major benefit to filing Chapter 7 bankruptcies is you can keep your home and vehicle. To keep your car, you will be required to sign a reaffirmation agreement, which is an agreement to continue to pay under the same or similar terms of your original vehicle purchase agreement. For a debtor to keep their home, they must be current on their mortgage payments or they must be able to reach a forbearance or modified agreement with their mortgage company. If the debtor is not current on their mortgage and not able to reach a forbearance or modified agreement with their mortgage company, then filing Chapter 7 bankruptcy will not stop the mortgage company from being able to foreclose on the home.

Who is eligible to file Chapter 7 bankruptcy?

The best way to determine if you are eligible to file for a Chapter 7 bankruptcy is to work with an experienced bankruptcy attorney who will review your individual conditions and needs and help you decide which form of bankruptcy is right for you. Your attorney will gather information about your monthly income and living expenses to help determine your qualifications. If you have little or no disposable income left after paying your living expenses each month, then you will likely qualify for Chapter 7 bankruptcy. If you have previously been granted a Chapter 7 bankruptcy within the last eight years, then you cannot file for Chapter 7 again, but you may qualify for Chapter 13 bankruptcy four years from the date of your Chapter 7 bankruptcy.

How Chapter 7 bankruptcy affects businesses

Businesses can file Chapter 7 bankruptcy but should only consider doing so when it is in their best interest to completely wipe the slate clean and start over. When a business files Chapter 7 bankruptcy, the trustee will usually sell all the company’s assets and use the profits to pay the business’s creditors. When the process of selling assets and paying creditors is complete, the business is then dissolved. If a business is considering filing bankruptcy but does not want to completely dissolve the business and start over, they may want to consider another form of bankruptcy such as Chapter 13.

What is the process for filing Chapter 7 bankruptcy?

The attorneys at SAG are here to guide our clients through every step of the Chapter 7 bankruptcy process. The process will begin with your confidential initial consultation with your attorney. Your attorney will gather all necessary information and aide you in determining the type of bankruptcy that is right for you. Once you have hired an attorney, you can then refer all creditors to your lawyer’s office to handle collectors. Then your attorney will file a petition with the local bankruptcy court, along with financial statements and other required documents. Once the bankruptcy petition has been filed with the courts, there will be an automatic stay placed meaning creditors are not allowed to continue to contact you about your debts, sue you, or garnish your wages. You will also be required to complete pre-bankruptcy credit counseling when filing under Chapter 7.

What happens after filing Chapter 7 bankruptcy?

One of the most common concerns among debtors is what will happen after they file Chapter 7 bankruptcy and when they can expect to reestablish good credit. Your credit report will reflect information about your bankruptcy for 10 years, but you can begin rebuilding your credit much more quickly during this time. After approximately 18 months of meeting your monthly expenses on-time, your credit rating should begin to improve.

Supportive bankruptcy attorneys provide individualized attention to each client while guiding them through the Chapter 7 bankruptcy process.

The bankruptcy lawyers at The Storay Advocacy Group, P.A. genuinely care for their clients and want to walk with them through every step of their bankruptcy process. It is our passion to help hard-working individuals and businesses through their most trying legal challenges and aide them in finding the solution that is right for them. To schedule your free and confidential legal consultation with one of our skilled bankruptcy attorneys call us at 813-502-5520 or contact us online. We look forward to working with you soon.