The bankruptcy process is the mechanism that is developed in federal court following bankruptcy laws established in the United States, to protect and assist individuals or businesses in solving problems of payments to other institutions known as creditors.
Chapter 7 is part of the bankruptcy law that allows for a person to discharge specified debts by filing a case in the bankruptcy court, turning over all non-exempt properties and assets to a court appointed trustee, and following the rules set by the court. A person who files for a Chapter 7 bankruptcy is called a debtor.
Someone who qualifies for a Chapter 7 bankruptcy meets certain criteria. Any person whose current income is sufficient to repay a large portion of his or her debts should not file for Chapter 7, as the court may dismiss the case as an abuse of Chapter 7. In addition, if you have previously filed a bankruptcy within a certain period of time, or if the court believes you are committing fraud against your creditors, you will not be able to file a Chapter 7 bankruptcy. It is important to contact our bankruptcy lawyers. They can help you recognize if you are a good candidate for Chapter 7.
If an individual discharged debt under a Chapter 7 bankruptcy within the past eight years or under a Chapter 13 bankruptcy within the past six years, then the debtor is ineligible for Chapter 7. If a debtor failed to meet the credit counseling requirements, the individual will not be eligible to file Chapter 7. In addition, if the debtors income is high enough to repay a portion of their debt, he or she will not be able to file.
Before you file bankruptcy, you must complete a credit counseling course pre-approved by the bankruptcy court, including 180 days of bankruptcy petition, and present evidence to the court that the course has been passed. There are free agencies in Miami for credit counseling. You can contact Gallardo Law Offices for more information on credit counseling.
Chapter 7 eliminates almost all debts, but there are some that remain after the bankruptcy discharge, such as: student loans, fines due to government agencies, child support and spousal support or alimony debts.
Chapter 7 cases are filed in the office of the clerk of the Bankruptcy Court in the district where the debtor resided or maintained a place of business for the larger portion of the 180 days prior to filing.
You must stop using credit cards if you are considering filing bankruptcy. The judge presiding over your case will review all of your debts and can establish recent purchases as fraudulent activity.
Yes, you can get new credit cards. You will be able to restore your credit again long before you finish the set payments; you only need the approval of the bankruptcy court. In some cases, it might happen that the interest on loans is higher due to a bankruptcy. You can find more information in our website www.GallardoLawFirm.com, in the section on credit and bankruptcy.
Yes, they may, using the same set of forms.
Husband and Wife should file jointly if some of the debts are owed by both. If both spouses are listed for any of the debt and only one of them files for Chapter 7, creditors may attempt to collect payments on those debts from the spouse that did not file bankruptcy.
It is illegal for any employer, either public (government) or private, to discriminate against a person in regards to employment if that person has filed for Chapter 7 bankruptcy. It is also illegal for any government agency to discriminate against a person when seeking any license, permit, or any similar documentation because the person seeking such documents has filed for Chapter 7 Bankruptcy.
Under federal law, certain properties and assets can be declared exempt and cannot be seized by creditors. A debtor may keep exempt property. It is only necessary for a debtor to turn over non-exempted property to the trustee.
A trustee is a court appointed officer responsible for gathering a debtors nonexempt property, selling it, and using the funds received to pay off creditors. The trustee also has certain administrative duties, including the responsibility of making sure debtors follow through with the obligations in their bankruptcy case.
The length of a Chapter 7 Bankruptcy case depends on how the trustee takes to gather and sell a debtors assets, and perform his other case duties. If the debtor has no assets or property determined to be nonexempt for the trustee to gather, the case will more than likely be closed soon after a notice of discharge is received by the debtor.