Common Chapter 7 Bankruptcy Questions
Our Daytona Beach Bankruptcy Attorney has Answers
If you are facing debt that you are no longer able to manage, you should consider filing for bankruptcy to get yourself out from under. While a bankruptcy could help you restore your financial integrity, you should fully discuss your options with a Daytona Beach bankruptcy lawyer before doing so. Below are some common questions regarding Chapter 7 bankruptcies. For further questions, please call The Law Office of Jeffrey A. Klein right away for help.
What is a Chapter 7 bankruptcy?
In a Chapter 7 bankruptcy, debtors are allowed to keep possession of certain
kinds of “exempt” property while the rest of your assets are
liquidated by a trustee. This trustee will then distribute the funds to
your creditors according to the provisions of the Bankruptcy Code. You
should be aware of which non-exempt property you could be losing before you file.
What is a discharge?
In a Chapter 7 bankruptcy, a discharge is the order signed by a bankruptcy
judge which declares all your eligible debt to be discharged. A discharge
order is a permanent injunction against a creditor whose debt is discharged
from trying to collect on the debt. The order is usually entered 110 days
after your Chapter 7 case is filed. Our Daytona Beach bankruptcy attorney
can advise you as to which debts can and cannot be discharged.
What are exemptions?
Exemptions are certain assets owned by the debtor which can be protected
from creditors and the Chapter 7 trustee. Exemptions do not apply to a
mortgage or lien voluntarily placed the asset by the debtor. Your attorney
can go over how to properly claim exemptions.
What is a redemption?
If an asset is exempt from liquidation, it can be purchased or redeemed
from the creditor by paying its present market value. You can pay the
amount in small installments or one lump sum as determined by the trustee
assigned to your case.
Are any debts unable to be discharged?
Yes—the most common debts are alimony, child support, certain property
settlement agreements, some income tax liabilities, sales tax liability,
IRS pay roll tax liability or trust fund liability, and many student loans.
Am I required to list all my assets and creditors?
Bankruptcy law requires you to make a complete disclosure of all debtor
assets and anyone to whom the debtor owes money. Bankruptcy schedules
are signed under penalty of perjury and the debtor will be asked to affirm
under oath that all their assets and debts were lawfully disclosed.
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