Orlando Debt Discharge Attorney
If you are struggling with debt you find difficult to repay, you may have already considered discharging your debt through bankruptcy. While bankruptcy should always be a last resort, it can provide a clean slate for those struggling financially. Filing Chapter 7 bankruptcy can allow you to discharge your debt, meaning you are no longer legally responsible for paying it. However, the Chapter 7 bankruptcy process is complex and not everyone qualifies. Below, our Orlando debt discharge attorney explains further.
What is Chapter 7 Bankruptcy?
By filing Chapter 7 bankruptcy, you can have a significant amount of debt discharged. Having debt discharged does not mean that it is forgiven or erased. It simply means you do not have to pay it and creditors and debt collectors can no longer contact you trying to collect it. Chapter 7 bankruptcy is also known as a ‘liquidation bankruptcy’ because you must sell some of your assets to cover a portion of your debt.
One of the biggest obstacles in Chapter 7 bankruptcy is passing the means test. The means test is an eligibility requirement that requires you to show that you cannot afford to repay your debt. Passing the means test is not easy. If you do not pass, you cannot file Chapter 7 and instead will have to file Chapter 13 bankruptcy.
Non-Dischargeable Debt in Chapter 7
If you are successful with your Chapter 7 case, you can discharge the majority of your debt. Common types of debts that are discharged in Chapter 7 include auto loans, credit card debt, medical debt, and more. Still, there are certain types of debts you cannot discharge through bankruptcy. These include:
- Child support and alimony payments,
- Student loans that are federally backed, unless you can show undue hardship,
- Fraudulent debts,
- Most tax debt,
- Loans or credit card purchases incurred just before filing for bankruptcy,
- Debt included in a previous bankruptcy filing,
- Debts incurred due to causing personal injury or death while driving impaired, and
- Criminal fines and penalties.
Florida’s Property Exemptions in Chapter 7 Bankruptcy
Each state provides certain exemptions for property that cannot be sold during the bankruptcy process and Florida is no different. The exemptions in Florida include:
- Up to 100 percent of the equity in a home if it meets certain requirements,
- Savings accounts for health emergencies, education, and hurricane disasters,
- Tax credits and refunds,
- Up to $1,000 in motor vehicle equity,
- Child support and alimony payments, and
- Up to $1,000 in personal property.
The above are just a few of the most common exemptions in Chapter 7 in Florida. A lawyer can explain what property of yours is exempt and guide you through the process.
Call Our Debt Discharge Attorney in Orlando Today
If you have significant debt you cannot afford to repay, there are legal options that can help. At Florida Law Advisers, P.A., our Orlando debt discharge attorney can explain what those are, determine if you are eligible for Chapter 7, and help you explore other options. Call us now at 1 (800) 990-7763 or contact us online to schedule a consultation and to learn more.