Fort Lauderdale Bankruptcy Chapter 7

Use Liquidation Bankruptcy to Your Advantage

Have your credit card, loan, or mortgage payments become unmanageable? You may have fallen on hard times because of an illness, the need to take care of elderly parents, a stock market crash, or even a natural disaster. Alternatively, poor financial decisions you made in the past might have had devastating consequences for your current circumstances. Whether you are struggling because of misfortune or mistakes, LSS Law is here to provide dedicated and compassionate legal counsel.

Our bankruptcy attorneys support individuals in Fort Lauderdale and Miami who need a powerful solution to their crushing debt. If you have very few assets and an income that is too low to keep up with payments, Chapter 7 may be the right path for you.

Benefits of Filing Chapter 7 Bankruptcy in Florida

Starting the path to financial recovery can be challenging, but filing for Chapter 7 bankruptcy offers a range of benefits that can help you regain control of your finances and move toward a more stable future.

Some benefits of filing for Chapter 7 are:

Filing can lead you to a fresh start—certain debts may be eliminated completely.
The potential to keep future income or property after filing for Chapter 7.
No limit to the amount of debt you have.
Involves no repayment plan. After the debt is discharged, you no longer have responsibility for it.
Debt may be discharged in as little as 3 months.

To discover if Chapter 7 is the solution you are looking for, please call us at (954) 866-5356 today.

How Does Chapter 7 Work?

Chapter 7, also known as liquidation bankruptcy, is the most common type of bankruptcy in the United States, usually taking around 3–5 months to complete. During this process, a court-appointed bankruptcy trustee oversees the liquidation of the debtor’s non-exempt assets to pay off creditors. However, not all possessions will qualify for liquidation.

Non-exempt assets that will be liquidated typically include:

Cash
Stocks and bonds
Valuable possessions (e.g., heirlooms, expensive instruments, etc.)
Second vehicles/luxury cars
Vacation homes

Exempt assets that will not be liquidated can include:

Vehicles (unless they exceed a certain value)
Clothing, household appliances, and furniture
Pensions and public benefits
Tools for your professional trade
Certain portions of your equity (although the court may place a lien on your home)

During this process, you will likely need to complete bankruptcy counseling and a financial management course. You will also need to attend the Meeting of Creditors, at which you will explain your situation and why you need to file.

Who Can File Chapter 7 Bankruptcy?

To qualify for Chapter 7, you will need to pass the means test. The means test determines whether you are eligible for Chapter 7 by assessing your monthly income, expenses, and level of debt. If your income is too high, the court will decide if you are capable of paying your debt in full or, if necessary, reorganizing it through Chapter 13. Generally, you will pass the means test if your income is less than the median income of your state.

Chapter 7 may be best for you if you have a low income. You should either have a few non-exempt assets or be willing to lose them through liquidation.

Other Requirements for Chapter 7

You must be an individual, a married couple, or a small business owner.
You have not had a bankruptcy discharge via Chapter 7 in the last 8 years.
You have not had a recent bankruptcy discharge via Chapter 13 in the last 6 years.
You have not had a bankruptcy dismissal in the last 180 days.
You must attend a credit counseling course 180 days before your discharge.

Why Choose LSS Law for Chapter 7 Bankruptcy in South Florida?

Deciding whether Chapter 7 is right for you will be a challenge without years of experience and training. At LSS Law, our team is armed with the knowledge and resources needed to assist you during this trying time. If you are unsure whether bankruptcy is the best option, or if you need a dedicated advocate by your side, we are the team for you.

80+ Years of Combined Legal Experience

Call (954) 866-5356 to schedule a Strategy Session with our Chapter 7 attorneys in South Florida.

FAQ: Chapter 7 Bankruptcy In Florida

What are the Advantages of Filing for Chapter 7 Bankruptcy?

Chapter 7 bankruptcy offers a fresh start by discharging many of your unsecured debts, such as credit card debt and medical bills. It’s a relatively quick process, usually taking between 3-5 months. Additionally, you can protect certain essential assets through exemptions, allowing you to focus on rebuilding your financial future without losing everything.

Will I Lose All My Property When Filing for Chapter 7 Bankruptcy?

Not necessarily. While Chapter 7 is known as liquidation bankruptcy, exemptions under state and federal law allow you to keep specific essential assets, such as a primary residence, a modest vehicle, clothing, and household items. An experienced bankruptcy attorney can help you understand and maximize the exemptions available to you.

Can Chapter 7 Bankruptcy Stop Wage Garnishments and Creditor Harassment?

Yes, filing for Chapter 7 bankruptcy triggers an automatic stay, which puts a halt to wage garnishments, creditor calls, and collection efforts. This provides you with much-needed relief and a chance to regroup as you work towards financial stability.

What is the Role of a Bankruptcy Trustee in a Chapter 7 Case?

A bankruptcy trustee is assigned to your case to oversee the bankruptcy process. Their role includes reviewing your financial documents, liquidating non-exempt assets, and distributing proceeds to your creditors. They also ensure that your case adheres to bankruptcy laws and procedures.

How Can a Bankruptcy Attorney Help Me Through the Chapter 7 Process?

An experienced bankruptcy attorney can guide you through the entire Chapter 7 process, from determining if you qualify to assisting you in filing the necessary paperwork. They can help you understand your rights, maximize exemptions, and represent you during the Meeting of Creditors. An attorney’s expertise can make the process more manageable and less stressful.

Can Chapter 7 Bankruptcy Help Me with My Mortgage or Car Loan?

While Chapter 7 bankruptcy can discharge unsecured debts, it does not directly address secured debts like mortgages and car loans. However, it can free up funds by eliminating other debts, making it easier for you to make mortgage or car payments. In some cases, negotiating with your lender or loan servicer may lead to more favorable terms, making it more manageable for you to keep your home or vehicle.

How Long Does Chapter 7 Bankruptcy Stay on My Credit Report?

Chapter 7 bankruptcy remains on your credit report for ten years. Although it can have an initial negative impact, taking steps to rebuild your credit after bankruptcy can help you regain financial stability and access to credit in the future.

Extra Info: Chapter 7 Bankruptcy Income Limits In Florida

When considering filing for Chapter 7 bankruptcy in Florida, it’s essential to understand the income limits set by the state. These limits are determined through a process known as the “means test chapter 7 Florida,” which evaluates your financial situation to establish whether you qualify for this type of bankruptcy.

The means test consists of two primary components:

1. Comparing your income to the state median:

The first step in the means test is comparing your average monthly income for the six months preceding your bankruptcy filing to the median income for a similar-sized household in Florida. If your income is equal to or less than the state median, you are eligible to file for Chapter 7 bankruptcy.

2. Evaluating your disposable income:

If your income exceeds the state median, you’ll need to proceed to the second part of the means test. This portion involves a more detailed analysis of your income and expenses to determine your disposable income. If your disposable income is insufficient to repay a significant portion of your unsecured debts, you may still qualify for Chapter 7 bankruptcy.

It’s important to note that the Florida median income figures are subject to change periodically. As of 2021, the latest figures for median income per household size in Florida is:

Single individual: $50,641
Family of two: $61,619
Family of three: $67,717
Family of four: $81,091