JT Simons
Community Involvement


(727) 372-4722 

 
 
Chapter 7 Bankruptcy

A Guide To Chapter 7 Bankruptcy

Bankruptcy is a legally declared inability of individuals or businesses to discharge their debts. A declared state of bankruptcy can be requested not only by creditors in an effort to get what they are owed but also by the insolvent individual or organization. If it is difficult to repay debts, filing for bankruptcy may be the right solution to debt problems.

Out of six basic types of under the Bankruptcy Code, Chapter 7 is a "liquidation" of nonexempt assets to pay debts. In a court-supervised procedure, a court appoints a trustee who liquidates the non-exempt assets of the debtor's estate and makes distributions to creditors. The Bankruptcy Code allows the debtor to keep certain exempt property; but a trustee will liquidate the debtor's remaining assets.

According to the amendments to the Bankruptcy Code enacted in to the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, if a debtor's income is in excess of certain thresholds, the debtor may not be eligible for Chapter 7 relief. Filing a petition under Chapter 7 automatically stays most collection actions against the debtor or the debtor's property, but potential debtors should realize that the filing of a petition under chapter 7 might result in the loss of property.

After Chapter 7 bankruptcy, one will no longer owe money on most unsecured debts including credit cards, unsecured loans, unpaid hospital, medical and utility bills and unpaid rent. But certain debts including state and federal taxes (unless they are more than three years old), child support required by law, alimony, government-backed student loans, debts due to fraud, fines, penalties and debts due to willful injury to another person or property are not eliminated by Chapter 7 bankruptcy.

Just a few months after the petition is filed, in most chapter 7 cases, the individual debtor receives a discharge that releases debtor from personal liability for certain dischargeable debts. Thus, Chapter 7 bankruptcy is designed to give the debtor a new start and a chance to live with sound financial management. Simons & Catey, P.A. can help you determine whether a Chapter 7 bankruptcy is the right option for you.

J.T. Simons Law Firm
Website Request
  • - -
 
 
 

We offer attorney and lawyer services in West Pasco County FL in the following towns:
Elfers
, Holiday, Hudson, Land O Lakes, New Port Richey, Odessa, Port Richey, Trinity
Sitemap

Copyright © 2012 J.T. Simons, PA
8040 Old County Road 54 - New Port Richey, FL 34653
(727) 372-4722