Chapter Bankruptcy Lawyers in Jacksonville, FL

If you’re struggling to manage unpaid debt, bankruptcy may provide much-needed relief. Under Chapter 7 bankruptcy, most of your unsecured debt is forgiven, allowing you a chance at a fresh start. Below, learn more about how a Chapter 7 bankruptcy attorney at Gahanian Law, PA can help you regain control of your finances.

What is Chapter 7 Bankruptcy?

Latin descent man and woman struggle to pay their monthly bills. They are calculating expenses versus budget income and are upset. Many invoices, laptop on living room coffee table. Children in kitchen background. Mid-adult age couple. Frustration among middle-class people. Great imagery for election season: home finances, recession, past due bills, mortgage, debt, stress, worry, taxes. Bankruptcy is a legal process where you get relief from your unsecured debts, such as credit card debt, medical bills, and personal loans. If all you have are exempt assets, your creditor may simply have to erase your debt.

Compared to a Chapter 13 bankruptcy, a liquidation bankruptcy is relatively fast; it may only take six months to complete the entire process. Because the process is quicker, it will also cost you less time and money.

Understanding the Process

For a Chapter 7 bankruptcy, you must show that you do not have the financial ability to pay your debts. The Bankruptcy code calls for an evaluation of your annual household income and then compares it to Florida’s median income for the same-sized family. This is known as the means test. Many factors can impact your eligibility and the means test requires complex calculations. For this reason, it’s best to consult with a Jacksonville FL bankruptcy lawyer before filing under Chapter 7.

The Role of the Trustee

Once you determine your eligibility and file the appropriate paperwork, your Chapter 7 bankruptcy case will begin. The court will appoint a bankruptcy trustee who will oversee your case. The Trustee’s job is to review the case for assets and to verify the accuracy of the bankruptcy forms that are submitted to the court

Why Should I File Chapter 7 Bankruptcy?

Chapter 7 bankruptcy is a relatively fast process that can eliminate much of your unsecured debt, including credit card, note loans, repossessed or voluntarily surrendered vehicle loans and medical bills. Chapter 7 is not for everyone. For instance, you may have assets that you can lose in Chapter 7. Or, you could be over the income guidelines. Using an experienced bankruptcy lawyer can help you through this process.

Do I Have to Liquidate My Property in a Chapter 7 Bankruptcy?

Under federal bankruptcy laws, you must sell all of your non-exempt property as part of a Chapter 7 bankruptcy in Florida. However, that doesn’t mean that you have to sell everything you own. In Florida, you can keep your exempt property, which may include:

Your home (Florida’s homestead exemption is one of the most generous in the country)
Up to $1,000 in personal property
Certain education, health, and hurricane savings accounts
Up to $1,000 in motor vehicle equity
A portion of your wages
Pension and retirement accounts
Public benefit payments, such as workers’ compensation payments
Alimony and child support payments

However, you can also use Florida’s bankruptcy exemptions if you meet the state’s residency requirements. Generally speaking, that means that you must have been domiciled in Florida for two years. Otherwise, you’ll need to apply your previous state’s bankruptcy exemptions.

When you work with an experienced Florida Chapter 7 bankruptcy lawyer, we will carefully evaluate your assets and financial resources. Our goal is to maximize your bankruptcy exemptions, ensuring that you don’t lose your exempt property during the liquidation process.

Bankruptcy Exemptions

Both federal and state laws determine which property your creditors can take and which property is protected. The protected property is referred to as exempt. This is a complicated determination that should only be made with the assistance of a competent attorney who focuses on bankruptcy.

How Does a Chapter 7 Bankruptcy Work?

When you file for Chapter 7 bankruptcy, you will submit a series of forms that identify your creditors, assets, and debts. Once you pay a filing fee and give the Bankruptcy Court these documents, it will initiate an automatic stay on your creditors’ collection efforts. That means that collections companies, credit card providers, and other creditors must immediately stop their harassing phone calls, letters, and legal actions. This stay will remain in place throughout your entire Chapter 7 bankruptcy.

For many people, the automatic stay provides welcome relief. Phone calls and lawsuits cease immediately and this is a huge source of stress for many people who are struggling.

Early on in the process, the court will appoint a bankruptcy trustee to your case. This individual will help liquidate your non-exempt property, issue payments to your creditors, and monitor your bankruptcy. Your Chapter 7 bankruptcy lawyer will communicate with the trustee, providing them with the necessary information and ensuring that the trustee treats you fairly at every step of the process.

During your bankruptcy, you or your chapter 7 attorney will need to attend meetings, respond or file motions, and submit necessary documents and information to the trustee. Because the bankruptcy process is highly technical, it’s in your best interest to work with an experienced Chapter 7 bankruptcy lawyer — otherwise, you could end up making costly mistakes that impact your case.

Once your non-exempt property is liquidated and your creditors are paid, the bankruptcy court will discharge or forgive any remaining debts that are included in your Chapter 7 bankruptcy. However, not all debt is dischargeable. For example, the court will not forgive your unpaid alimony or child support and certain tax debt. If you want to discharge your student loans, you’ll have to prove that they pose an “undue hardship.”

Why Should I File Chapter 7 Bankruptcy?

Do I Have to Liquidate My Property in a Chapter 7 Bankruptcy?

Your home (Florida’s homestead exemption is one of the most generous in the country)
Up to $1,000 in personal property
Certain education, health, and hurricane savings accounts
Up to $1,000 in motor vehicle equity
A portion of your wages
Pension and retirement accounts
Public benefit payments, such as workers’ compensation payments
Alimony and child support payments

Do I Have to Liquidate My Property in a Chapter 7 Bankruptcy?

Your home (Florida’s homestead exemption is one of the most generous in the country)
Up to $1,000 in personal property
Certain education, health, and hurricane savings accounts
Up to $1,000 in motor vehicle equity
A portion of your wages
Pension and retirement accounts
Public benefit payments, such as workers’ compensation payments
Alimony and child support payments

Bankruptcy Exemptions

How Does a Chapter 7 Bankruptcy Work?

For many people, the automatic stay provides welcome relief. Phone calls and lawsuits cease immediately and this is a huge source of stress for many people who are struggling.

Do I Qualify?

Not everyone qualifies for Chapter 7 bankruptcy. To be eligible, you must pass a complicated means test that evaluates your financial liquidity. If you have significant financial resources, you may have to consider a Chapter 13 bankruptcy. Because the means test considers a wide variety of factors, including your income, it’s best to consult with a Chapter 7 bankruptcy lawyer in Florida before you file.

At Gahanian Law, we can help you understand whether you qualify for Chapter 7 bankruptcy in Florida. We can also help you weigh your debt relief options and choose a path forward that best suits your needs and circumstances.

Consult With a Bankruptcy Attorney Today

Deciding whether or not to file for Chapter 7 bankruptcy is an important and potentially difficult decision. However, when properly planned and executed, bankruptcy is a powerful tool that can help you recover after a financial crisis. To learn more about your debt relief options, contact a bankruptcy attorney at Gahanian Law, PA.

We offer free, confidential consultations. Just as importantly, we pride ourselves on our practical and respectful approach. We treat our clients with the dignity they deserve and help them make the best possible decisions about their financial future. Contact us today to learn more.

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Gahanian Law, PA

3840-1 Williamsburg Park Blvd.
Jacksonville, FL 32257

904-441-6010

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