Chapter 7 Bankruptcy Mangonia

Sometimes things are tough; the economy struggles, there aren't enough hours at work, and it's hard to make ends meet, much less pay off the mounting debt. When times are desperate, it is appropriate to use whatever means necessary to solve the pressing solutions at hand. Chapter 7 bankruptcy frees you from the obligation of paying your debts via unprotected asset liquidation.

How Chapter 7 Works

In order to file for bankruptcy, one must first file a petition to the local courts. You must include with your petition a list of all assets, liabilities, income, expenditures, and contracts involving co-debtors, along with any other forms of financial engagement. If you are unsure of how to prepare the documents or exactly which documents are appropriate for submission, seek legal aid from your personal bankruptcy lawyer. Married couples may file jointly. Immediately, an “automatic stay” goes into effect, which stops creditors from making attempts to collect on debts. Jointly filed petitions must have information for both debtors.

The court then assigns a clerk to your case, and then sets up a "meeting of creditors” as well as informs the creditors of the “automatic stay.” Every entity involved in the bankruptcy case must be in attendance of the meeting; this means, the debtor(s), the creditors, and an impartial, independently-assigned trustee. During this meeting, the group discusses the financial situation of the debtor in great detail. Judges are not in attendance.

Discharge Legal Overview

Florida Chapter 7 bankruptcy law is very complex. To ensure a worry free experience, be sure to consult with legal aid. It is within 90 days of the “meeting of creditors” that a large portion of chapter 7 bankruptcy cases are granted discharge.

Though rare, declinations do happen. A judge may decline or dismiss a case for a number of reasons. Debtors who fail to clearly explain the reasons for filing bankruptcy; commit perjury; fail to obey court orders; or conceal pertinent information may have their case denied.

The information provided on Federal Bankruptcy law is accurate up to the date of publishing. It should not be taken as legal counsel or authority. It should not be used as a substitute for the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. Please visit your local library for a more in-depth and authoritative source of information.

The Mangonia bankruptcy law specialists at the Eric N. Klein & Associates, P.A. firm would like to hear from you today. Contact them at 561-353-2500.

Portions reprinted from the office of the US Department of Justice.