Too Late to Restart Life? Explore Chapter 7 Bankruptcy!
You can never escape unpredictable turns that life might take if you mistrust yourself. One of the most commonly filed bankruptcy types is Chapter 7, sometimes known as liquidation bankruptcy. Even if you are at this point in life, there is hope! Let us see how things operate when it comes to filing Bankruptcy in orlando. As soon as you file for Chapter 7 bankruptcy, an appointed trustee will take control of your case.
This trustee will gather all of your assets and sell them for the best price in order to pay off your creditors after exempting any assets. You are going to pay off most of your debts if you obtain a discharge against this. The Chapter 7 bankruptcy income restrictions in Orlando will determine if you meet the requirements.
How Does One File For Bankruptcy Under Chapter 7?
- Submitting a petition to the judge
You must submit a petition to the bankruptcy court. The moment you submit the petition, all creditor collection efforts will come to an immediate stop. This means a temporary halt to all legal actions and debt collection calls. A filing fee of around $300 is also required in order to file for Chapter 7 bankruptcy.
Along with a comprehensive inventory of all your assets, debts, earnings, and outlays, this petition will also include an official plea to the court to file for bankruptcy. It is a very smooth and uncomplicated process.
- Getting a Meeting with a Trustee
You will choose a trustee to manage your case after submitting your petition. The job of your trustee is highly significant throughout the entire bankruptcy procedure. To ensure that the financial information you provide is accurate, they will first go over your petition and schedules.
Once completed, all non-exempt assets will be located and sold to settle debts with creditors. The trustee will allocate the proceeds from the asset sales to the appropriate creditors if there are several of them.
- Gathering of Debtors
You will get an invitation to attend the creditors’ meeting, commonly known as the 341 meeting, 30 to 40 days after filing your petition. The trustee and the creditor will ask you a number of questions during this meeting.
- Asset Allocation and Discharge
Certain assets, including your principal house or retirement savings, are exempt, and you will be permitted to retain them. If you have non-exempt assets, the trustworthy will sell them to pay off the creditors.
You will get a notice of distribution once the trustees have divided the profits from the sale of your non-exempt assets among the creditors. Following the filing of your petition, you will get a discharge that will eliminate the majority of your debts after four to six months.
How to Qualify For Chapter Seven?
- You Have to Make The Required Income
You must make less money than the state and family size median income levels in order to qualify for Chapter 7 bankruptcy. The bankruptcy court can quickly ascertain this by applying a formula. This formula will take your family size, costs, and income into consideration.
- You Need to Pass The Means Test.
You can be mistaken if you believe that writing lengthy responses on paper for an exam entails covering a certain subject. To find out if you have enough discretionary income to pay off your obligations, use the means test calculation.
You must prove that you do not have enough disposable income to pay off your obligations in order to pass the means test. In the event that you fail the means test, you will need to file for Chapter 13 bankruptcy as opposed to Chapter 7, which allows you to pay back your debt over three to five years.
- You Have Not Filed for Bankruptcy During the Last Eight Years
You cannot apply for Chapter 13 bankruptcy or Chapter 7 bankruptcy within the last six years in order to be eligible for Chapter 7 bankruptcy. The purpose of this waiting period is to stop people from abusing the bankruptcy system by filing for bankruptcy more than once.
