Chapter 7 Bankruptcy Riviera

For people in dire situations, Chapter 7 bankruptcy is a considerable option for getting out of debt. Under Federal Law it is defined as a process by which you are discharged, or completely freed, from the obligations of paying outstanding debts. If you are granted Chapter 7 bankruptcy, all debts, save those federally protected, and relinquished from your responsibility.

How Chapter 7 Works

Filling out a petition to local courts is the first step in seeking Chapter 7 bankruptcy. Upon submission, an exhaustive list of assets, liabilities, income, expenditures, and contracts involving co-debtors along with any other forms of financial engagement must accompany the application. A competent bankruptcy attorney can help you prepare these documents. Florida bankruptcy law does permit a husband and wife to file jointly, although separate filing is also permissible. Once the appropriate papers are submitted, an “automatic stay” goes immediately into effect. This statute stops all forms of collection acts against you. Jointly filed petitions must contain the necessary information for both parties.

The court clerk assigned to your case will organize a “meeting of creditors,” to which all interested parties-debtors, creditors, and an impartial trustee-must attend. During this time, the applicant discusses his financial situation at length with his creditors. Judges are not in attendance.

Discharge Legal Overview

Florida Chapter 7 Bankruptcy law is very complex. It is advisable to seek legal aid before filing. This act ensures a smooth application process. When done right, a large majority of Chapter 7 bankruptcy cases are granted within 90 days of the first “meeting of creditors.”

Declinations are rare. The reasons for why a judge declines a liquidation request vary from case to case. For the most part, applicants who fail to clearly explain his reason for filing bankruptcy, commit perjury, fail to obey court orders, or conceal pertinent information can have their case dismissed.

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 Riviera bankruptcy law specialists at the Eric N. Klein & Associates, P.A. firm would like to hear from you today. Contact them at 561-353-2800.

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