What is Chapter 7 Bankruptcy and What Does It Cover
When you file for Chapter 7 bankruptcy, your assets are liquidated to pay your creditors, and the court issues a bankruptcy discharge to sever any contract between you and a creditor. You are no longer obligated to pay discharged debts, and the creditor can’t pursue action against you.
Chapter 7 bankruptcy will discharge most debt, including:
- Business debts
- Medical bills
- Most attorneys’ fees
- Personal loans
- Most civil court judgments
- Credit card balances, including overdue and late fees
- Overpayments to government programs, such as Social Security and welfare
- Past-due rent
- Collection agency accounts
- Unpaid taxes and penalties
- Past-due utility bills
- Most auto accident claims
Will Bankruptcy Proceedings Stop Foreclosure?
When you file for bankruptcy in Florida, the court will order an automatic stay that prevents creditors from continuing collection efforts, which includes the mortgage holder. However, the automatic stay does not apply in some situations, so speaking with an experienced Orlando bankruptcy attorney is crucial to ensure that bankruptcy proceedings will stop foreclosure in your case.
How Many Times Can You File for Bankruptcy?
You can file for bankruptcy as many times as you want. However, you typically must go through a waiting period before filing a new case. The waiting period depends on the type of bankruptcy you previously filed and the type you want to file afterward.
- You must wait eight years to file a new Chapter 7 bankruptcy case if you previously filed for Chapter 7
- You must wait two years to refile for Chapter 13 bankruptcy if you previously filed for Chapter 13
- You must wait six years to file for Chapter 7 after having previously filed for Chapter 13
- You must wait four years to file for Chapter 13 after previously filing for Chapter 7
How Long Does Bankruptcy Take in Florida?
The duration of your bankruptcy case will depend on the type you file. The process of filing and going through Chapter 7 bankruptcy can take up to a year. When you file for Chapter 13, the process typically takes three to five years, depending on your repayment plan.
How Long Does Bankruptcy Stay on My Credit Report?
You can expect Chapter 13 bankruptcy to stay on your credit report for seven years. Chapter 7 bankruptcy should come off your credit report after 10 years.
Can You Rent After Bankruptcy?
Because bankruptcy remains on a person’s credit report for seven to 10 years, renting an apartment or house can be challenging because a potential landlord can see the bankruptcy during a background check. However, bankruptcy does not automatically bar a person from renting a home or apartment. A Florida bankruptcy lawyer can give you some strategies for improving your chances of renting after bankruptcy.
Can Student Loans Be Included in Bankruptcy?
Federal student loans can be discharged in bankruptcy only if you file a separate action (called an adversary proceeding) and demonstrate to the bankruptcy court that repaying your loans would cause undue hardship.
How Our Orlando Lawyers Help with Bankruptcy
An Orlando bankruptcy lawyer from Florida Law Advisers, P.A., can assist you with multiple parts of your case, including:
- Determining your eligibility for bankruptcy
- Advising you of your options and whether you should consider filing Chapter 7 or Chapter 13
- Explaining the difference between discharged debt and debt you still owe
- Protecting your legal rights
- Communicating with your creditors
- Helping you find a way to keep the assets you don’t want to liquidate
What is Chapter 13 Bankruptcy and What Does It Cover?
Chapter 13 bankruptcy is often more desirable to debtors because it doesn’t require them to liquidate their assets to repay their debts. Instead, they can pay their debts in installments over three to five years. It often allows debtors to save their homes from foreclosure.
Chapter 13 typically discharges unsecured debts, such as:
- Credit card balances
- Medical bills
- Unsecured personal loans
- Some obligations under leases and contracts
Chapter 13 does not discharge the following secured debts:
- Mortgages
- Alimony and child support payments
- Federal student loans
Contact Our Orlando Bankruptcy Attorneys Today
You deserve a chance to free yourself from debt when the burden becomes too much. Bankruptcy could allow you to start over and work toward a better financial future. Call an Orlando bankruptcy attorney from Florida Law Advisers, P.A., now to discuss your bankruptcy options during a free consultation.