CHAPTER 7 BANKRUPTCY ATTORNEY IN ORLANDO
Offering Debt Relief Services Since 1971
Chapter 7 bankruptcy, often referred to as “liquidation bankruptcy,” is one of the most common forms of bankruptcy in Florida. In as little as three to five months, debtors have the chance to move on from their bankruptcy with a clean slate, free from the burden of overwhelming debt. If you have considered Chapter 7 bankruptcy as a debt relief option, please contact Mark & Brown, P.A. for a free initial consultation.
Is Chapter 7 right for you? Find out by setting up a free consultation with the Orlando bankruptcy lawyers at our firm. Call (407) 932-3933.
What are the Benefits of Chapter 7 Bankruptcy?
Typically, a simple Chapter 7 bankruptcy will last anywhere from three and five months, resulting in most, if not all, of your unsecured debt being discharged.
Just a few of the benefits of filing under Chapter 7 include:
- You can move on from your bankruptcy with a “fresh start”
- Your debts will be discharged in just a few short months
- The automatic stay will protect you from debt collectors
- There is no limit to the amount of debt you can have
Timeline for Chapter 7 Bankruptcy
Here are the timelines for Chapter 7:
- Before filing bankruptcy: You must complete a credit counseling course within 180 days before filing your Chapter 7 bankruptcy petition.
- Filling bankruptcy: Once you file, the automatic stay will go into effect. The court will assign an impartial trustee to oversee and examine your case.
- Creditors meeting: About 30 to 40 days after you file, you will have a creditors meeting (known as a 341 meeting). This meeting is usually brief. Creditors will have until 60 days after the meeting to object to discharge of your debts.
- Reaffirming debts: After your 341 meeting, you will have 45 days to reaffirm debts on assets you wish to keep (such as a car you are making payments on).
- Second credit counseling course: You need to complete your second credit counseling course within 45 days after your 341 meeting.
- Discharge of debts: If the federal bankruptcy approves your file, your debts will be discharged about three to four months after your creditor’s meeting.
You should refrain from incurring new debts while your bankruptcy is in process — and at least 90 days before filing — as the court may not discharge those debts.
Qualifying for Chapter 7 Bankruptcy
Since Chapter 7 bankruptcy allows for an immediate discharge of debt, most debtors are required to pass a means test before they can file. The means test will compare your average monthly income to the median income level for a household of the same size in Florida. If it is less than the median income level, you would qualify.
However, even if your monthly income exceeds the median income level for a household of the same size, you may still qualify. Next, the test would determine whether or not you have enough “disposable income” to repay your creditors—which is any left-over income that is not contributed to certain monthly expenses.
To learn more about the Chapter 7 means test, please click here.
Are You Ready for a Fresh Start? Call Today.
If you are ready to move on from your debt once and for all, reach out to the Orlando bankruptcy lawyers at Mark & Brown, P.A. for a free and confidential consultation. Our firm has been assisting debtors throughout Central Florida since 1971.