Chapter 7 Bankruptcy Information for Florida Residents
Jacksonville Chapter 7 Attorney
Chapter 7 of the United States Bankruptcy Code describes liquidation
bankruptcy. By filing under this chapter, you have the opportunity to get a fresh
start and become debt-free. The trustee will sell any of your assets and
pay the creditors with the proceeds. Certain types of debt cannot be discharged,
however, such as:
- Fraudulent debts
- Certain taxes
- Child support
- Student loans
In most cases, Chapter 7 has the potential to completely wipe out most,
if not all, of the filer's debts. If you would like to pursue this
type of bankruptcy, speak with our
Jacksonville lawyers from the Albaugh Law Firm.
We Help Determine Your Eligibility with the Bankruptcy Means Test
The bankruptcy means test evaluates a debtor's income compared with
the official median income for households in the state of Florida. If
your current monthly income (CMI) is higher than the median income in
the state, the means test will apply a complex expense formula to determine
whether you are eligible to file under Chapter 7. If you fail the means
test, you may still be eligible to file for
Chapter 13 bankruptcy. If your income is less than the state's minimum, you will likely
be eligible to file under Chapter 7.
If you are eligible for Chapter 7, you will then have to decide whether
it is the best option for your circumstances. This decision will first
require a strong understanding of the bankruptcy laws in Florida. The
court forgives individuals their debts by taking assets that are not exempt.
One special provision in the state is that the court cannot take a debtor's
home because the equity in a home is protected under the Florida Constitution.
Your secured debts, such as your home, vehicle, and a certain amount of
secured purchases, also can be exempted. If you want legal guidance through
what is often a complex process,
contact our firm at once!