Chapter 7

  • I Filed for Chapter 7 Bankruptcy. Will I lose my Assets?

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 7

    If you are facing an insurmountable level of personal debt, you may be considering Chapter 7 bankruptcy. Chapter 7 bankruptcy can result in the loss of certain of your assets, but in the vast majority of cases,  the filer’s exempt assets are mostly exempt and you can retain them. An experienced Bankruptcy lawyer will work with you to determine how you may be able to retain your assets in an ethical manner. Cash Any cash you have available, either on hand or in savings or checking accounts, is an asset of your Bankruptcy estate to which the Trustee can look to pay your creditors. However, there are so many exemptions that apply to these funds, that with careful ethical planning, you may plan your bankruptcy…

  • Best Practices to Do Prior to Filing for Bankruptcy

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7

    When you are facing an insurmountable level of personal debt, bankruptcy can be the way out. Although bankruptcy is not a legal process to take lightly, it is one to seriously consider if you feel like you cannot take control of your debt through other means. You can make the bankruptcy process easier for yourself by taking the time to educate yourself about all that the process entails. Use what you learn to prepare for your bankruptcy before you file. By taking the following steps before you file for Chapter 7 or Chapter 13 bankruptcy, you can make the process less stressful for yourself. Seek Credit Counseling By law, you are required to receive credit counseling from an accredited credit counseling agency before you can…

  • Eliminating Divorce Obligations through Bankruptcy

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7, Divorce

    Bankruptcy is a tool used by many to reduce debts that they cannot reduce on their own. Individuals struggling with personal debt can use Chapter 7 or Chapter 13 bankruptcy to discharge their debts. If you are considering filing for divorce, you might be worried about the costs involved with the divorce process and the debt you might face when the process is complete. Discuss your concerns with your lawyer to get a better sense of what you can expect from your specific case. Bankruptcy and the Automatic Stay When you file for bankruptcy, an automatic stay is enacted. This is a court order to your creditors to cease all collection attempts until the bankruptcy is finalized. Having an automatic stay in place to stop…

  • When you are Facing Bankruptcy, You Need to be Completely Honest with your Lawyer – No Matter How Embarrassing

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 7

    Your lawyer is a professional. When you work with a bankruptcy lawyer, you trust that lawyer to help you reduce your debt by advising you through each step of the bankruptcy process. Each bankruptcy case is unique, and a strategy that helps one individual get out of debt will not necessarily help somebody else. Because each bankruptcy case requires such specialized attention, clients need to be completely transparent with their lawyers to ensure that they receive effective, customized bankruptcy strategies. It can be embarrassing to discuss certain details of your financial or personal life with your lawyer. Although you might be tempted to conceal certain facts, this can actually harm your case. Be honest with your lawyer at all times. This is the only way…

  • Do I Qualify for Chapter 7 Bankruptcy?

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 7

    For individuals who are struggling with personal debt, such as credit card or medical debt, there are generally two bankruptcy options: Chapter 7 and Chapter 13. Each has unique demands for the bankrupt individual and unique benefits. Although many consider Chapter 13 to be the less austere because you may keep unlimited assets, you might be in a situation in which Chapter 13 is less helpful to you than Chapter 7 bankruptcy. Whether this is the case for you depends on multiple factors, such as the reason behind your debt and your income to debt ratio. Chapter 7 bankruptcy is only available to individuals or businesses in certain financial situations. To qualify for Chapter 7 bankruptcy, an individual with mostly consumer debt must pass the…

  • What Are Bankruptcy Exemptions?

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7

    When you decide to file for Chapter 7 or 13 bankruptcy, you may fear that you will have to surrender all your assets or be restricted to subsistence income. However, this is not the case.  There are some assets that the government has no interest in taking, and there are some which will fall under what the Bankruptcy Code calls exemptions. Florida maintains a list of exemptions, so that those who are forced to file can still retain most if not all of their possessions. State vs. Federal Exemptions In Florida, unlike in some other states, a filer may not use the federal government exemptions for his bankruptcy with rare and specific exceptions.  However, it is generally considered to be a better deal, as the…

  • Bankruptcy & Private School Issues

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7

    For a variety of reasons, many parents in the U.S. choose to send their children to private schools. It can be a good fit for some children, but it does come at a cost. These school costs can become an issue if one or both parents file for bankruptcy. While a lot will depend on your specific situation, it is important to be aware how bankruptcy courts view private school if you are seeking to discharge your debts. Chapter 7 Filings Those debtors wishing to file for bankruptcy under Chapter 7 may worry that private school education expenses may affect their eligibility to file for bankruptcy. Generally, the bankruptcy court does not consider private school a necessity and it may consider the funds spent on…

  • Will Bankruptcy Help With Divorce Obligations?

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 7, Divorce

    Sometimes, a divorce can trigger a financial crisis for one or both parties involved.  Adding divorce-related financial obligations like alimony or child support can cause significant problems, which may even lead to bankruptcy.  It is perhaps natural to wonder if filing for bankruptcy will eliminate any of these obligations. Support Obligations The U.S. Bankruptcy Code allows individual debtors to file under either Chapter 7 or Chapter 13 protection, depending on their income level and the nature of their debts.  Regardless of which chapter you file under, however, the Code is clear: support obligations are not dischargeable in bankruptcy.  Support obligations, by the Code’s definition, include nearly every expense associated with them: alimony, child support and lawyer fees, connected with alimony and child support. The rationale…

  • How Will My Bankruptcy Affect My Spouse?

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7

    Bankruptcy is a last resort for the overwhelming majority of people. If you are forced by circumstance to have to file, you almost certainly have a thousand questions about the future, and that load doubles if you are married. Many couples file for bankruptcy jointly, but this is not always the best choice, and either way, it is important to be aware of the potential effects on both your and your spouse’s financial future whether or not you choose to file jointly. Should We File Together? In some situations, it can actually be advantageous to file for bankruptcy as a couple, most often if your financial situations are comparable. If both of you are heavily in debt, it may simply save time and money to…

  • Considering Bankruptcy During Tax Time

    ByGoodblatt • Leo Hours Categories Bankruptcy, Chapter 13, Chapter 7, Debt Relief

    If you are like the numerous other Americans who file for bankruptcy protection every year, you may be concerned about the long-term implications of filing. Maybe you worry how you will be able to afford a bankruptcy lawyer, or how long it will take to rebuild after the initial financial crash. But one thing you may not be thinking about is your taxes. Before you file your returns, here is what you should know about bankruptcy and taxes. What happens to my tax refund if I file for bankruptcy? It is important to consider what type of bankruptcy you are filing. In general, however, the bankruptcy court is concerned with making sure your creditors get paid as much as possible, while allowing you the protections…