Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is what is commonly referred to as “a straight liquidation” designed to be a quick an orderly court-supervised procedure by which a trustee (hypothetically) collects all the assets of the debtor, reduces them to cash, and makes distributions to the eligible creditors.
Liquidation is always subject to the debtor’s right to retain certain exempt property and the rights of secured creditors. Your states exemption laws or federal exemption laws outline all specific asset exemptions available to individuals seeking Bankruptcy protection.
Because there is usually little or no non-exempt property (or practically speaking all property can be protected), most chapter 7 cases, do not result in an actual liquidation of the debtor’s assets but instead only result in the discharge of most of debtor’s financial obligations.
Generally, in Florida, a debtor may be able to protect 100% of equity in their primary residence in any bankruptcy chapter.Chapter 7 cases are commonly referred to in Bankruptcy law as: “no-asset cases.”
In most chapter 7 cases, the debtor receives a complete discharge of all dischargeable debts related to the debtor. Therefore, Debtors are released from personal liability for certain dischargeable debts like credit cards, medical bills, civil judgments, wage garnishments and most other loans.
In Chapter 7, a debtor can generally modify theor mortgage through the MMM portal, rescind contracts, surrender secured assets and discharge any debts that may normally arise as result of most contracts however certain debts may not be discharged.
Normally, the debtor can expect to receive a discharge three to four months after the Chapter 7 bankruptcy petition is filed.
DebtCrushers, your Miami Bankruptcy Lawyers, can help you and your family find the best solution to resolve your financial hardships and get out of debt quickly. Call us today for a free consultation.