Are creditors hounding you with constant calls and letters to try to collect debts you can't pay? Chapter 7 bankruptcy comes with incredible relief – all contact from creditors by phone, letter, text or other method is brought to a complete stop – and that is just the beginning of the benefits you could enjoy.
What is Chapter 7 Bankruptcy in Fort Myers?
Chapter 7 is a federal program that was created to provide a fresh start for people who face overwhelming debt. The process is fast, requiring only about four to five months to complete. This is the most common form of bankruptcy filed in the USA, allowing many debts, if not all debts, to be discharged -- gone forever.
Eligibility for Chapter 7 Bankruptcy
This form of bankruptcy is often ideal for people who are struggling to make the monthly bills and need to get back in control of their finances. To determine if you are eligible, you are required to take a test, called the "means test." This test involves revealing every form of income for the past six months. If, after completing the means test, your income is less than Florida's median income, you will qualify for Chapter 7.
What are the Benefits of Filing Chapter 7 Bankruptcy?
Chapter 7 bankruptcy offers an incredible level of relief for people who are facing a crushing debt load. The benefits include:
- An "automatic stay" order that prohibits creditors from contacting you.
- Wage garnishment is halted.
- Your home, vehicle, or other property cannot be repossessed during the process.
- Most lawsuits will be halted.
- Your utilities cannot be cut off after filing.
- Most unsecured debt is discharged, gone forever.
Some debts can't be discharged, including spousal support, child support, some tax debts, some student loans, personal loans, personal injury judgment payments, or payments ordered for criminal restitution.
What is the Chapter 7 Process?
Filing Chapter 7 involves the following steps:
- A credit counseling course is required to be completed before filing.
- The bankruptcy petition is prepared and filed, listing all income, expenses, assets and debts.
- An automatic stay is issued that halts all collection actions.
- The case is assigned to a Chapter 7 bankruptcy trustee.
- The Trustee holds a meeting of creditors and will review your paperwork.
- Most, if not all, of your unsecured debt may be discharged.
Can You Keep Your Home and Car with Chapter 7?
Chapter 7 provides the opportunity for a fresh start by removing the crushing burden of bills you cannot pay. Your home and car will be protected as long as you pay all payments on time going forward, and we can exempt the equity. When the majority of your debts have been discharged, it makes it much easier to stay current with mortgage and car payments. Most people lose nothing in Chapter 7 – except debt!
