What can chapter 7 do for me?
Filing a chapter 7 bankruptcy gives you the protection of the "automatic stay." The automatic stay will immediately stop all collection activity and most lawsuits. It will also ease most debt related stress by halting:
- Collection phone calls and other creditor harassment,
A Chapter 7 bankruptcy completely cancels your qualifying debts. These debts include personal loans, credit card bills, repossession deficiencies, medical bills and most court judgments. In most cases, income taxes more than three years old may also be included. Debts which are not covered by bankruptcy include:
- student loans (unless you can prove "undue hardship,"),
- alimony and support payments,
- fines and debts incurred due to involvement in criminal activity
- sales and withholding tax
To qualify for a chapter 7 you must pass the means test and surrender all of your non-exempt assets to the trustee. Florida residents generally can exempt $1,000 in personal property, $1,000 equity in a vehicle, and their house. If you don't own a house you can exempt $4,000 in personal property.
In a Chapter 7 you can usually keep your current car loan or mortgage if you can afford to keep up the payments. If you don't want to keep your house or car you can choose to give it up and not have to pay anything.
If you are struggling under the burden of unmanageable debt, talk to David Holland Law about your options. We can advise whether or not you qualify for a Chapter 7 and whether this is the most appropriate solution for your particular circumstances.
The type of debt you have as well as your financial goals should be taken into account when determining your best course of action. If you do not qualify for Chapter 7, you may qualify for Chapter 13 or one of the many alternatives to bankruptcy which can help you to come out from under the weight of heavy debt.
At David Holland Law we are committed to helping individuals in need gain a fresh start. Although your situation may seem hopeless now, you do have options. We can provide you with the information you need.