Chapter 7 Bankruptcy May be the Right Choice, Depending on the Circumstances
Brandon, FL (Law Firm Newswire) January 10 , 2013 - Every bankruptcy filed in the U.S. today is different.
“No two bankruptcy cases are alike, even though a debtor may think their friend or relative is in the same boat as they are,” said Reginald Osenton, a Brandon bankruptcy lawyer. “Often, although their situations may appear similar, there are significant differences that would mean each person needs to file under a different Chapter to declare bankruptcy.”
If they choose a Chapter 7 bankruptcy, often referred to as a liquidation or straight bankruptcy, a trustee is appointed to sell all non-exempt assets to pay creditors. The court-appointed trustee then distributes the funds according to priorities laid out in the bankruptcy code. Chapter 7 may only be filed if a debtor meets certain requirements.
Debtors may file Chapter 7 if they are not able to file Chapter 13. They must not have any other bankruptcy discharges in the past six to eight years.“If you are not certain whether you qualify, talk to a bankruptcy attorney and get more information before proceeding,” suggested Osenton.
Chapter 7 bankruptcies are not easy to deal with, as there is a mountain of paperwork and some very personal questions that need to be answered before moving forward. The debtor needs to explain where they live, the cost of living there, how much they make from their job, their debts, what property they feel is exempt, how much property is owned, their spending habits and anything else that is relevant to the Chapter 7 process. Once that has been sorted out, the process of filing is initiated.
When a debtor files for a Chapter 7 bankruptcy, an automatic stay is issued that holds off the vast majority of creditors. It prevents repossession, loss of welfare benefits, utility cut offs, wage garnishment and removal of funds from the debtor’s bank account. All property and debts are then placed under the care and control of the bankruptcy court and a trustee.
Once in bankruptcy proceedings, the debtor may not sell property, or give it away, or even pay their debts. They also may not enter into any other financial interactions without first obtaining the permission of the court. Even though the appointed trustee examines the property under bankruptcy protection, there is usually not much they can find that can be sold.
Osenton Law Office, PA
500 Lithia Pinecrest Road
Brandon, Florida 33511
Call: (813) 654-5777
- When debtors agree to surrender property, they must follow through
When filing bankruptcy, “surrender” means “surrender.” That is the message from Tampa bankruptcy judge Michael G. Williamson in a recent Florida bankruptcy case, in which Lisa Metzler of Gibsonton declared bankruptcy in 2012. She was delinquent on her mortgage and had no way to pay it or her other debts. She agreed to surrender her […]
- Studies Show Divorce’s Ill Effects on Children, but Risks Can Be Mitigated
Everyone who gets married hopes to stay that way forever. But despite everyone’s best efforts and intentions, sometimes divorce really is the only solution. For childless couples, divorce is a decision that does not greatly impact anyone but the couple themselves. Of course, the same cannot be said of parents who divorce. Divorce can have […]
- Detroit Bankruptcy Represents Largest Municipal Case in U.S. History
Bankruptcy is most often used as a way for individuals and businesses to either discharge debts or reorganize them into a more manageable payment plan. But governments, particularly cities and counties, can declare bankruptcy as well for the same reason: unmanageable levels of debt. Municipal bankruptcies are fairly rare. They have happened at the rate […]
See other news sources publishing this article. BETA | Tags: brandon bankruptcy attorney, brandon bankruptcy attorneys, brandon bankruptcy lawyer, brandon bankruptcy lawyers, brandon lawyers, tampa bankruptcy attorney, tampa bankruptcy attorneys, tampa bankruptcy lawyer, tampa bankruptcy lawyers