Chapter 7 Bankruptcy Lawyer in Altamonte Springs: The Ins and Outs of Chapter 7
The word bankruptcy doesn’t carry with it the same negativity and shame that it once did, and that’s a good thing. It means that more people are likely to be willing to get the help they need when they have serious debt and no seeming way to get out of it. This is a good option that could be a perfect choice for many people who are struggling right now. Those who are interested will want to get in touch with a Chapter 7 bankruptcy lawyer in Altamonte Springs to see whether it might be the right solution.
What Is Chapter 7?
Another term often used for Chapter 7 is a liquidation bankruptcy, and it allows people to clear away many of the various unsecured debts they have accrued. When you find that you are behind on your bills and you can’t pay for your monthly payments and your living expenses, it could be in your best interest to file for Chapter 7, which can help to give you something of a fresh start on your finances.
Of course, this doesn’t mean that it’s all good news. This is a big step to take, and when you do, there is a chance you may have to give up some of your possessions. There is also the fact that it can affect your creditworthiness for years. This doesn’t mean you won’t get loans after a while, but you may not get favorable interest rates for quite some time. You will have to work toward building a stronger credit score again.
If you are already in a financial situation where you are having trouble with paying your bills each month, though, it is quite likely that your credit score has already been taking a serious hit.
How Does Chapter 7 Bankruptcy Work?
When you file for Chapter 7, an automatic temporary stay will be placed on your debts. This means that the creditors have to stop collecting payments from you. It means that any wage garnishment is going to stop. It also stops creditors from repossessing property, foreclosing on your home, turning off utilities, evicting you, and more. The court takes possession, and a trustee is appointed to the case.
The trustee will review your finances to determine whether you can qualify, and in cases where there is nonexempt property, they may sell it to help pay off creditors. They will also set up the creditor meeting at the courthouse, where you will answer some basic questions regarding your case and your finances. Your Chapter 7 bankruptcy attorney in Altamonte Springs can help to get you ready for this meeting and can attend the court date with you.
Who Qualifies for Chapter 7
To qualify, you will need to have an average monthly income over the past six months that is less than the median income for the same-size household in Florida, or you will have to pass a means test. If you have only a small amount of disposable income, you should qualify. If you have a lot of disposable income, you may need to file for Chapter 13 bankruptcy instead.
Other qualification requirements include not filing Chapter 7 in the past eight years or Chapter 13 in the past six. If you tried to file for bankruptcy before and the case was dismissed, you have to wait for at least 181 days before you attempt to file again.
How Long Does It Take?
Chapter 7, from start to finish, doesn’t take too long to complete. From the start of credit counseling until the court discharges your debts will usually take between four and six months. However, this can vary based on each individual case. Instances where more documentation or paperwork is needed, for example, could make it last a bit longer.
How Long Does Chapter 7 Stay on Your Record?
A Chapter 7 bankruptcy will stay on your record for up to 10 years, which means it has the potential to affect your credit for a long time. This is one of the reasons that a lot of people only use bankruptcy as a last resort. As troublesome as this might sound, though, it doesn’t mean you won’t be able to get credit cards or loans. Over time, your score will improve, and the bankruptcy will not be seen as being as large of a problem for some creditors.
Find Your Chapter 7 Bankruptcy Lawyer in Altamonte Springs
You want to find and work with the top attorneys for the job, so consider working with Orlando Law Group. You can call (407) 512-4394 to get in touch and to learn more. We have experienced attorneys who are ready to answer your questions and handle your case from start to finish.
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