All posts tagged: Chapter 7 Bankruptcy

What is Chapter 7 Bankruptcy?

What is Chapter 7 Bankruptcy?

Chapter 7

Chapter 7 is known as the “liquidation bankruptcy’’ because it discharges most of your unsecured debt. That includes credit card debt, medical bills and personal loans.

It’s the quickest, simplest and most common type of bankruptcy. About 63% of the 774,940 bankruptcy cases filed in 2019, were Chapter 7.

An even more encouraging bankruptcy statistic: 94.3% of Chapter 7 filings had their debts discharged. You must pass a “means test’’ to qualify for Chapter 7 filing. The means test examines financial records, including income, expenses, secured and unsecured debt. You must qualify under income limits that vary by state. There are also debt requirements. For better or worse, some people don’t have enough debt to qualify.  As a rule of thumb, I generally do not file bankruptcy for clients with less $10,000 in unsecured debt (credit cards).  You might be forced to sell any non-exempt assets, although important assets like home, car (provided you don’t have a lot of equity in the car), equipment for work, are exempt and can be retained.  Although if you are a risk of losing that asset, we will have you file a Chapter 13 Bankruptcy Instead.

Generally, the Chapter 7 process can be completed in three to four months.

Bankruptcy Myths

Filing for bankruptcy can be a traumatic experience, particularly for people who believe some of the “myths’’ that supposedly surround the process.

Some of the myths include:

Losing Everything — Actually, the majority of Chapter 7 filings are “no-asset cases,” meaning the debtor gives up no possessions. The law allows you to retain basic assets necessary for day-to-day life, like your house, car, computers or other equipment needed for you to work. These are called exemptions. Beyond that, it’s likely that creditors won’t want the possessions that aren’t covered under exemptions.

Relief from ALL Debts — As a general rule, debts you are deemed personally responsible for – taxes, alimony, child support, student loans – won’t be forgiven. Some consequences can’t be erased.

Paying off Debts Is a Better Decision — Maybe. But maybe not. If your debts are more than 50% of your annual income — and you can’t see a way to pay them off within five years — bankruptcy is the best choice to achieve a long-term, debt-free life.

Bankruptcy Is a Personal Failing — It’s not an admission of failure or a character flaw. Filing bankruptcy is a financial remedy, especially if unforeseen events occur in your life. Things like job loss, meltdowns in the real estate market and especially medical emergencies, aren’t easy to predict. The fact is, medical bills account for more than half of the bankruptcies in America.

Bankruptcy Will Ruin Your Financial Future — Yes, credit will be difficult to obtain. Yes, higher interest rates will be a given for the 10 years the bankruptcy is expected to remain on your credit report. But in time, there is a way back. Many people have prospered after taking the short-term hit that comes with filing for bankruptcy.  We have many clients that are able to buy a home within 2 years from receiving their Chapter 7 Discharge.

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Steven Wallace, EsqWhat is Chapter 7 Bankruptcy?
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Mortgage Forbearance Options Explained

Mortgage Forbearance Options Explained

Here is an excellent video outlining the Mortgage Forbearance Options under the CARES Act.

For more information, please contact the experienced bankruptcy attorneys at The Wallace Law Group with a convenient office location in Boynton Beach representing clients in Boynton Beach, Delray Beach, Boca Raton, West Palm Beach, Greenacres, Wellington, Fort Lauderdale, Coral Springs, Deerfield Beach, Parkland, Hollywood, Weston, Aventura, Miami, Miami Beach.The Wallace Law Group, PL.

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Steven Wallace, EsqMortgage Forbearance Options Explained
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Florida Unemployment Claims Exceeds 1 Million

Florida Unemployment Claims Exceeds 1 Million

As a result of the COVID-19 pandemic and Florida’s Safer at Home Order, according to the Florida Department of Economic Opportunity, the state has received 1,025,657 unique unemployment claims and has so far paid 452,526.  The Miami Herald Article going into further detail.

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Steven Wallace, EsqFlorida Unemployment Claims Exceeds 1 Million
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Free Bankruptcy E-Book

Free Bankruptcy E-Book

Attorney Steven Wallace is proud to make available his Free Bankruptcy E-Book

Personal Bankruptcy: How You Can a Fresh Start

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It is very important to hire an experienced bankruptcy attorney to assist you in determining whether it would be proper to file a Chapter 7 (liquidation) or a Chapter 13 (repayment plan for wage earners). For more information, please contact the experienced bankruptcy attorneys at The Wallace Law Group with a convenient office location in Boynton Beach representing clients in Boynton Beach, Delray Beach, Boca Raton, West Palm Beach, Greenacres, Wellington, Fort Lauderdale, Coral Springs, Deerfield Beach, Parkland, Hollywood, Weston, Aventura, Miami, Miami Beach.

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Steven Wallace, EsqFree Bankruptcy E-Book
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Florida Moratorium on Foreclosures and Evictions

 Florida Moratorium on Foreclosures and Evictions

COVID-19 Economic Fallout

On April 3, 2020, in response to the COVID-19 pandemic, Florida Governor Ron Desantis signed Executive Order 20-94 which halted all Foreclosure Actions and Residential Tenant Eviction Actions for Non-Payment of Rent for 45 days.

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Steven Wallace, EsqFlorida Moratorium on Foreclosures and Evictions
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Demystifying Bankruptcy—Part 3

Chapter 7 Bankruptcy|Chapter 13 Bankruptcy|Boynton Beach Bankruptcy Attorney|Boynton Beach Bankruptcy Lawyer

Demystifying Bankruptcy—Part 3

This blog entries will dispel common myths and educate you on the general process of bankruptcy in Florida.

QUESTION: Will I Lose My Car if I file Bankruptcy?

For many people, their car is their prized possession.  The decision to file Chapter 7 bankruptcy (liquidation) or Chapter 13 reorganization often is determined by your vehicle(s).

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Steven Wallace, EsqDemystifying Bankruptcy—Part 3
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Demystifying the Bankruptcy Process-Part 1

Boynton Beach Chapter 7 Bankruptcy Attorney | Boynton Beach Chapter 13 Bankruptcy Attorney

Demystifying the Bankruptcy Process-Part 1

Many clients and prospective clients contact us and ask common questions based on advice from their relatives or a “friend of a friend.”  These blog entries will dispel common myths and educate you on the general process of bankruptcy in Florida.

QUESTION: Will I lose my Home if I file Bankruptcy in Florida?

There are two types of consumer bankruptcy: Chapter 7 (Liquidation) and Chapter 13 (Reorganization for Wage Earners).  One of the benefits of consumer bankruptcy is that it allows extraordinary relief that cannot be accomplished outside of bankruptcy.

Chapter 7 Bankruptcy

First, Florida allows an unlimited exemption for your homestead property which allows you to protect from creditor (and Bankruptcy Trustee) claims.

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Steven Wallace, EsqDemystifying the Bankruptcy Process-Part 1
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