Chapter 7 Bankruptcy Lawyers in Fort Lauderdale
Working Liquidation Bankruptcy to Your Advantage
Have your credit card, loan, or mortgage payments become unmanageable? You may have fallen on hard times because of an illness, the need to take care of elderly parents, a stock market crash, or even a natural disaster. Alternatively, poor financial decisions you made in the past might have wreaked devastating consequences on your current circumstances. Whether you are struggling because of misfortune or mistakes, LSAS Attorneys are here to provide dedicated and compassionate legal counsel.
Our Chapter 7 Bankruptcy attorneys support Fort Lauderdale individuals and businesses who need a powerful solution to their crushing debt. If you have very few assets and an income that is too low to keep up with payments, Chapter 7 may be the right path for you.
How Does Chapter 7 Work?
Chapter 7 is the most common type of bankruptcy in the United States and typically takes 3-5 months. It is also called liquidation bankruptcy because the court-appointed trustee uses the filer’s assets to pay creditors. However, not all of your possessions will qualify for liquidation.
Non-exempt assets will be liquidated. These typically include:
- Stocks and bonds
- Valuable possessions (e.g. heirlooms, expensive instruments, etc.)
- Second vehicles/luxury cars
- Vacation homes
Exempt assets will not be liquidated. Your exempt assets may include:
- Vehicles (unless they exceed a certain value)
- Clothing, household appliances, and furniture
- Pensions and public benefits
- Tools for your professional trade
- Certain portions of your equity (although the court may place a lien on your home)
During this process, you will likely need to complete bankruptcy counseling and a financial management course. You will also need to attend the Meeting of Creditors, at which you will explain your situation and why you need to file.
Who Can File Chapter 7 Bankruptcy?
To qualify for Chapter 7, you will need to pass the means test. The means test determines whether you are eligible for Chapter 7 by assessing your monthly income, expenses, and level of debt. If your income is too high, the court will decide you are capable of paying your debt in full or, if necessary, reorganizing it through Chapter 13. Generally, you will pass the means test if your income is less than the median income of your state.
Chapter 7, therefore, may be best for you if you have a very low income. Furthermore, you should either have few non-exempt assets or be willing to lose them through liquidation.
Call Our Fort Lauderdale Team to Begin
Deciding whether Chapter 7 is right for you will be a challenge without years of experience and training. LSAS Attorneys are armed with the knowledge and resources we need to assist you during this trying time. If you are unsure whether bankruptcy is the best option, or you need a dedicated advocate by your side, we are the team for you.
Call (954) 280-5066 to begin with a complimentary consultation with our Chapter 7 Bankruptcy lawyers in Fort Lauderdale.
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