How Chapter 7 Bankruptcy Provides A Fresh Financial Start
The current decline in the national economy has resulted in high unemployment, reductions in work hours and lowered real estate values for honest, hardworking Americans. Many upstanding individuals are now facing overwhelming debt as a result of these issues, despite their best efforts to remain on top of their finances. Chapter 7 bankruptcy provides filers with the ability to proactively address unmanageable debt and create a fresh chance for financial freedom. Here are some of the major ways that bankruptcy proceedings help people accomplish this.
One of the worst aspects of unpaid debt is creditor harassment. Many people receive multiple calls from collectors on a regular basis, which can be exceptionally stressful. Chapter 7 bankruptcy speaks to this problem directly, as debtors receive an automatic stay-essentially an immediate halt-on most collection actions as soon as they file. This provides a welcome respite for many filers, as it gives them the opportunity to sort through their financial issues without the stress of harassing creditor calls.
Chapter 7 bankruptcy proceedings provide debt discharges in an overwhelming number of cases. This means that debtors are released from liability on applicable debts, and also that creditors cannot engage in collection actions on those debts. Often, a discharge order will be issued by the bankruptcy court in approximately 90 days.
In exchange for debt discharge, filers’ assets are collected and liquidated by a trustee, who will then use those funds to settle debts with creditors. Filers, however, may be able to keep certain assets if they are eligible for exemption. Florida’s exemptions include:
· Motor vehicles and personal property subject to certain limits
· Education savings
· Child support and alimony
These exemptions allow filers to hold on to some of their most valued assets, such as their homes, furniture and cars. This can be very empowering, as filers can bring themselves out from under their debts without displacing their families or losing assets that they have worked for years to build.
Chapter 7 bankruptcy clearly offers many benefits for those who are currently in substantial debt. Taking advantage of all available avenues of assistance, however, requires a technical knowledge of bankruptcy laws and proceedings. The DiTocco Law Group has guided many people in the Fort Lauderdale area through bankruptcy proceedings, and possesses the legal knowledge help you take advantage of all the benefits to which you are entitled. If you are considering filing for Chapter 7bankruptcy in Fort Lauderdale and would like to discuss your situation with a bankruptcy lawyer, give the DiTocco Law Group a call today. Consultations are free, and it could mark the first step toward your fresh financial start.