Chapter 7

Chapter 7 is also called Straight Liquidation. In a Chapter 7, we can usually eliminate unsecured debts, such as credit cards, medical bills, repossession deficiencies, and signature loans, which allows you to get a fresh start, and financial independence.
Chapter 13 is also called Debt Consolidation, or the Wage Earners Plan. Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and allows you to make up the back payments in a 36 to 60 month plan. In a Chapter 13, we can also consolidate other bills, such as your car payment, whereby you may be able to only pay the value of the car, and not the loan balance. Other debt that can be consolidated includes tax debts, student loans, and child support or alimony arrears.

There is no specific dollar amount of debts to qualify for bankruptcy. I have filed bankruptcies for people who owe anywhere from $5,000 to $150,000 or more. The main requirement for filing a Chapter 7 bankruptcy is that you not have a great deal of excess income after the payment of regular living expenses, and that your gross income be under the Florida median income. For instance, if you have a very high monthly income and fairly low monthly expenses (not counting the credit card or other payments which would be eliminated in the bankruptcy), this may show that you have the ability to repay at least some of your debt in a Chapter 13 bankruptcy, and thus not qualify for a Chapter 7.

Yes. The most common non-dischargeable debts are student loans, alimony, child support, property settlement agreements, and certain income tax liabilities.

So long as your assets are within the exemptions provided by law, you should not lose any property. A partial list of these exemptions include: the home you are living in (unlimited value if owned more than 3.3 years, $136,750.00 equity if less than 3.3 years); up to $1,000 per person in equity toward one vehicle; up to $1,000 per person of personal property, which usually covers household furnishings and personal effects which can be valued at "garage sale prices"; all funds in retirement accounts, IRAs, 401-Ks, Annuities; social security income, disability income, wages if you are "Head of Household. If you don't have a homestead, you are entitled to an additional $4,000 wildcard exemption.

Yes. The bankruptcy laws require you to list all of your creditors, even if you intend to keep paying them after the bankruptcy. Bankruptcy schedules are signed under the penalty of perjury, and you will be asked under oath at the Meeting of Creditors if all debts were listed.

No. These type of transfers within two years of filing Chapter 7 bankruptcy will almost always be considered fraudulent, and could result in loss of your Chapter 7 discharge. You could also be subjected to criminal prosecution.

Yes. 85% to 90% of the people still qualify to file for Chapter 7 bankruptcy under the new bankruptcy laws. There are added requirements under the new laws such as providing copies of your tax returns, pay stubs, completing a budget with a consumer credit agency prior to filing bankruptcy, and completing a two hour financial management class after you file for bankruptcy. Otherwise, everything is basicly the same.

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