Are You A Good Candidate For Filing Chapter 7 Bankruptcy?
In this form of bankruptcy, all assets are liquidated with a few exemptions for income required to survive. While Chapter 7 is not available for partnerships or corporations, Chapter 7 is available to all individuals no matter how much debt they have, and it does not matter if they are solvent or insolvent. You are solvent if your assets exceed your liabilities. You may qualify for filing Chapter 7 bankruptcy if:
- You are unable to meet even minimum payments on debt.
- Credit cards and other personal loans never seem to go away (or go down).
- You are being hounded by creditors.
There are several benefits to filing Chapter 7, primarily the discharge of most of your debts and perhaps lower stress in your life. A creditor cannot hound you anymore after your debt has been discharged.
What Debts Do Not Qualify For Chapter 7 Discharge?
The debts that you do not list on your petition for bankruptcy will not be discharged. For example, if you forget to list a credit card debt on the petition, it will not be included in your Chapter 7 bankruptcy discharge. In addition, Chapter 7 does not discharge certain debts, such as:
- Court ordered obligations such as alimony and child support
- Certain taxes
- Debts involving educational benefit overpayments; loans made or guaranteed by a government agency
- Debts accrued for willful or malicious injury by you to another entity or to the property of another entity
- Legal debts for death or personal injury caused by your operation of a motor vehicle while under alcohol or other substance intoxication
- Debts due to criminal restitution orders under Title 18 of the United States Code
The bankruptcy courts are very strict with regard to actual assets claimed. Any attempt to hide income or assets can be subject to bankruptcy fraud and could eliminate any discharge.
A court trustee will be assigned to manage the debtor’s estate with the power to investigate any and all aspects of the filing, from both a debtor’s as well as a creditor’s point of view.
Contact Us For Assistance
Chapter 7 is not an option for everyone. To learn more about your bankruptcy options, contact Brown & Associates Law & Title, P.A., in Tampa. Our experienced team can be reached online or by calling 813-289-8485.
Brown & Associates Law & Title, P.A., is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.