Chapter 7 of the Bankruptcy Code provides for “liquidation,” which is defined as the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.
In contrast to Chapter 13, a Chapter 7 bankruptcy case does not require the filing of a repayment plan. Instead, the bankruptcy trustee may gathers and sells the debtor’s nonexempt assets/possession and uses the proceeds to pay claim holders (creditors) in accordance with the Bankruptcy Code. Part of the debtor’s property may be subject to liens and mortgages that encumber it and make it available to other creditors.
Furthermore, the Bankruptcy Code allows the debtor to keep certain “exempt” property; however, the debtor’s remaining assets will be liquidated by a trustee. As a result, prospective debtors should be aware that filing a Chapter 7 petition may result in property loss.
What Assets Are Disposable In A Chapter 7 Bankruptcy?
When seeking a fresh start through Chapter 7 bankruptcy in Florida, it can be intimidating to come to terms with the process of liquidating assets & possessions in order to pay creditors. You can, however, put your mind at ease and have a reasonable estimate of what you may lose with the guidance and reassurance of an experienced Chapter 7 Bankruptcy Attorney. When you file for Chapter 7, you will be assigned a Chapter 7 bankruptcy trustee who will be in charge of valuing and liquidating assets that they determine are valuable enough to help pay off your creditors. The bankruptcy will be handled in Miami Gardens in accordance with Florida bankruptcy guidelines, which include a list of exemptions and options. These exemptions include the ability to keep your home, vehicle, and certain belongings as long as you meet the established guidelines.
While this may appear to be confusing at first, a Personal chapter 7 Bankruptcy Lawyer can break down the specifics that apply to your unique set of circumstances and explain the procedures you may take to keep important assets. Unless the property is exempt, you will generally be required to pay the bankruptcy trustee the item’s value or an agreed-upon price. Otherwise, the company will be liquidated.
Can I File Chapter 7 Bankruptcy Without Affecting My Marriage?
While each case is unique, there are some general principles that apply to the majority of cases we handle at Lee Law Firm.
As a general rule, if you and your spouse have separate debts, your decision to file for Chapter 7 bankruptcy will have no effect on them. A Chapter 7 Bankruptcy Attorney will assist in explaining each step of the process as you proceed and allowing you to make decisions as it continues during the initial determination of indebtedness and financial analysis.
We will determine what debt is shared and what is held separately even if you and your spouse are married during our meeting. The best case scenario is that there will be as little shared debt as possible, and we will be able to file without harming your spouse’s credit.
While you may be unsure of the specific guidelines that qualify in Miami Gardens, FL, the professionals are here to help you every step of the way. Because determinations are frequently complex, and the filing process even more so, it is best to seek the advice of an expert Bankruptcy Attorney as soon as possible, even if you are only considering taking action at this time. The next step is to schedule an initial consultation with our professional team as soon as possible to determine how best to proceed. However, time is important in fact the essence and creditors can become increasingly predatory as time passes, don’t wait and get the help you need right away.