Gregory & Clark, PLLC Articles Understanding Chapter 7 Bankruptcy

Understanding Chapter 7 Bankruptcy

By Gregory & Clark  Jan. 22, 2011 5:25p

Sometimes situations happen in life that are unexpected and it forces us to change how we are operating in life. An accident, an illness or loss of a job can be one of those situations that enforce change and that change may need to be declaring bankruptcy and starting over.

What Exactly is Chapter 7? 

Chapter 7 bankruptcy is a legal action (also known as liquidation) that one can take to discharge debt.  It is the most common form of bankruptcy and an individual, couple or business can file.  Many residents in Central Florida are taking advantage of Chapter 7 bankruptcy to be freed from overwhelming debt. It is used to eliminate mostly unsecured debt like credit cards, medical bills, department store bills and so forth. Prior to filing, you will be required to take what is called the " Means Test." This will determine your eligibility to file. Those who do not pass the means test will have the option to file a chapter 13 bankruptcy. A bankruptcy attorney can help you with this test to determine your qualifications.

Changes in Bankruptcy Law

Bankruptcy laws changed in 2005 and one of those changes now requires that all debtors take a credit counseling course before filing as well as a financial management course after the filing. Any failure to comply with this new rule and failing to file the certificates that prove completion of the courses will bar you from completing bankruptcy.

Most people want to take responsibility for their debt but there does come a point where one has to ask himself, "What action do I need to take in order to survive?"  A Chapter 7 will give you relief from creditors calling, legal threats and actions. Most of your debt can be discharged although there are a few types of debt that are exempt. Working with a bankruptcy attorney is necessary to gain an understanding of how to file and what debts are dischargeable and which are not.

Ensuring a Successful Bankruptcy

If you are experiencing severe financial stress and are considering filing bankruptcy in the Orlando area, you should contact an  Orlando bankruptcy attorney for help. At Gregory & Clark, we specialize in this area and can provide insightful and creative solutions to your specific situation. We will go over the details with you as to what your best options are to help move you into a better financial position both short and long term. 

Contact an Orlando Bankruptcy Lawyer in our office for a free consultation today.

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