The Chapter 7
Bankruptcy Process
Chapter 7 Bankruptcy Process
Automatic Stay
From the instant we file your Chapter 7 bankruptcy case, the bankruptcy code provides for an automatic stay. This stay strictly prohibits your creditors from continuing to make collection attempts against you. The automatic stay is the first step in Chapter 7 Bankruptcy Process. The automatic stay immediately stops all collection activities from creditors. For instance, the automatic stay will stop foreclosure sales, prevent car repossessions, halt all lawsuits (both new lawsuits and pending lawsuits, including eviction lawsuits), end the wage garnishments and put an end to those stressful and harassing collection calls and collection letters you may have been receiving or expecting.
Assign Trustee
Soon after we file your Chapter 7 bankruptcy case, the clerk of court will randomly assign a Chapter 7 trustee to administer your “bankruptcy estate”. The trustee’s role is to administer your bankruptcy case and review your bankruptcy schedules. Generally, to better understand your finances and look for non-exempt assets in your Chapter 7 bankruptcy. The Chapter 7 trustee will sell certain property that the bankruptcy code does not protect. And will use the proceeds to repay your creditors as funds are available (or we can help to negotiate a mutually agreeable, short-term payment plan with the trustee on your behalf, which could allow you to keep even your non-exempt assets).
The Chapter 7 trustee will also arrange and conduct a meeting between you and your creditors. This meeting is called the meeting of creditors or a 341 meeting. (Both of these terms are used interchangeably and refer to the same meeting). Where you’ll go to the federal bankruptcy courthouse in your county and answer questions about your property, debts and other financial matters.
Exempt property is the list of property you can protect from sale or turnover to the trustee in bankruptcy. . And the type of property you can exempt along with the total dollar value that you can exempt varies by state. Some states will let you choose between their and the federal bankruptcy code’s laws of exempt property. A debtor that files for bankruptcy in Florida is usually confined to using Florida’s state exemptions to protect their property. However, that is not always the case. (If you have lived outside of Florida over the past two years, or own property outside of Florida, you may not be entitled to Florida exemptions).
The Chapter 7 bankruptcy process typically lasts about 3 months, starting from the time you file your Chapter 7 bankruptcy petition until the bankruptcy court grants you an Order of Discharge.
Order of Discharge
At the end of a successful Chapter 7 bankruptcy process, approximately three months after you initially file the Chapter 7 bankruptcy, the bankruptcy court will enter an Order of discharge. This order discharges your dischargeable debts (meaning you need not pay those creditors anymore).
Some debts may not be dischargeable in bankruptcy. And your property may secured other debts in collateral form. Examples of nondischargeable debt typically includes child support, alimony, unpaid court fees, some tax debts and most student loans debts. Examples of secured debt typically includes car loans and home mortgages.
Our goal at Florida Bankruptcy Advisors is to obtain this Order of discharge for you. Which essentially allows you to have all of your dischargeable debts legally forgiven (tax-free) by the end of bankruptcy process. The Order of discharge effectively prohibits the creditors to whom you owed money before filing for bankruptcy from ever trying to collect from you or from reporting your debt to a credit bureau. The Chapter 7 discharge most commonly prevents credit card companies, doctors, hospitals and lawsuit plaintiffs from ever collecting from you, or trying to collect from you, ever again.
Will You Qualify for Chapter 7?
We understand what you're going through and want to help.
Call Now for a FREE Phone Consultation with an Experienced Bankruptcy Attorney to learn more about how bankruptcy may help you.