The Guidance To Liquidate Your Debt Through Chapter 7
In general, people file Chapter 7 to eliminate credit card debt, medical bills, judgments, repossessions, mortgage deficiencies, and certain personal taxes. A Chapter 7 bankruptcy also allows you to surrender a house or a car that is worth less than the balance of the mortgage or loan and to terminate a lease early without repercussion.
If you are considering Chapter 7, I can help you. As the founder of Mark S. Steinberg, P.A., I have helped clients throughout Florida liquidate their outstanding debts through strategic bankruptcy petitions for more than 30 years.
Chapter 7: What To Know
Once you file bankruptcy, creditors and their collections agents must stop calling you and mailing you bills. Any pending lawsuits and wage garnishments will also stop. But Chapter 7 comes with conditions:
- First, some debts cannot be discharged in Chapter 7. This includes student loans, child support, alimony and recently assessed taxes.
- Second, you can only file Chapter 7 bankruptcy if you meet a minimum income test.
- Third, if you qualify under the income test, you can only keep a limited amount of belongings. Any belongings in excess of the limits may potentially be taken by the bankruptcy trustee to pay a portion of your debt.
The bankruptcy will stay on your credit report for 10 years. However, during that time your credit score will generally improve because the bad credit is no longer used as one of the determining factors. Before long you will be able to get a new credit card and even auto financing. Chapter 7 is usually the best choice if you have very few belongings, a limited income, and a large amount of unsecured debt. It is an excellent way for people in that situation to get a fresh start in life.
Learn More About Chapter 7 Today
You deserve wise counsel from an experienced bankruptcy lawyer. I provide free, confidential initial consultations in which you can discuss your situation. To set up an appointment, please call my Miami office at 786-744-4746 or send me an email.
I am a debt relief agent. My firm helps people file for bankruptcy relief under the Bankruptcy Code.