Chapter 7 Bankruptcy
Chapter 7 Bankruptcy is for people or businesses that do not have the ability to pay their existing debts. The purpose of filing Chapter 7 is to obtain a discharge of your existing debts.
If your debts are primarily consumer debts, (personal, family, or household debt) then your income must be no more than the State’s median income for your family size. If your debts are primarily business debts, then this is not a factor.
Under Chapter 7 Bankruptcy, you may keep your property up to a certain value, by claiming it as exempt. In Florida, exempt property includes:
- Primary residence (homestead exemption)
- Personal property to a value up to $1000 ($2000 for a married couple filing together)
- Automobile to a value up to $1000 (2 cars for a married couple filing together)
- Retirement and profit-sharing funds, if qualified
- Pre-paid college education funds
Under Chapter 7 bankruptcy, most of your debts will be discharged. Some debts are not discharged under the law, such as student loans, child support, certain back taxes, and debts arising from criminal conduct or fraud.
Orlando Bankruptcy Attorney Debra G. Simms will review your financial condition and explain the alternatives to help you determine if Chapter 7 Bankruptcy is the right choice for you. Our Orlando bankruptcy office is open during weekly office hours. We also offer evening and weekend hours. Contact us today for a consultation.