requirements for Chapter 7 bankruptcy

If you are struggling to keep up with your expenses, you should consider filing for Chapter 7 bankruptcy. Chapter 7 gives borrowers the opportunity to eliminate debt and regain their financial health with a  fresh start. However, bankruptcy is not right for everyone. Before filing you should consult with a bankruptcy law firm in Tampa. Additionally, there are legal requirements for Chapter 7 bankruptcy in Florida. In order to be eligible, the requirements must be satisfied to obtain the fresh start Chapter 7 can offer.

Liquidation Requirements for Chapter 7 Bankruptcy

Chapter 7 bankruptcy is also known as a liquidation bankruptcy. In Chapter 7, the debtor may be required to sell certain assets as a requirement for Chapter 7 bankruptcy. Fortunately, not all of a debtor’s assets will be subjected to liquidation by the bankruptcy court. Florida bankruptcy law provides exemptions for many of the assets a debtor might own. If an asset is exempt from liquidation the borrower will not be required to sell the asset. An experienced bankruptcy attorney in Tampa should be well aware of all the exemptions available to a debtor and limit the amount of assets a borrower may have to liquidate in a Chapter 7.

Typically, individual consumers with large amounts of unsecured debt file for Chapter 7. However, Chapter 7 is not reserved solely for individual consumers, partnerships and corporations that have a place of business in the U.S. may also be eligible for Chapter 7. See 11 USC 101. However, railroads, banks, credit unions, and insurance companies are specifically exempt from Chapter 7 relief.

Requirements to Refile Chapter 7 Bankruptcy

Bankruptcy law also restricts how often a debtor can file for Chapter 7. Under current bankruptcy law, a debtor that previously filed for Chapter 7 relief must wait eight years before being eligible for Chapter 7 again. The wait time for eligibility was increased from six years to eight years as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).

The Means Test

The BAPCPA enacted many requirements for Chapter 7 bankruptcy, including the means test. The purpose of the Means Test is to reserve Chapter 7 bankruptcy protection for individuals who truly need it. The Means Test requires that applicants earn an income below a specified amount as one of the requirements for Chapter 7 bankruptcy. The Means Test must to be completed on Bankruptcy Form 22A and signed by the debtor. Further, the Form 22A must include a verification that the information provided in the Form is true and correct under penalty of perjury. The Means Test is a multistep process that can be confusing and intimidating to debtors filing for Chapter 7 without the aid of a bankruptcy lawyer. For more information on how the Means Test works contact a Tampa bankruptcy lawyer.

Credit Counseling Requirement

Requirements for Chapter 7 bankruptcy also include credit counseling classes. Chapter 7 debtors are required to complete a credit counseling class within the 180 days immediately preceding the bankruptcy filing. The class can be done on an individual basis or conducted in a group setting. Moreover, the course can take place by telephone, internet, in person, or even in your attorney’s office with your bankruptcy lawyer present. Once the course is complete the debtor will need to file a statement of compliance with the bankruptcy court. The statement should include either a certificate or a statement that the debtor received the briefing but does not have a certificate.

Bankruptcy Law Firm in Tampa

At Florida Law Advisers, P.A. we understand that filing for bankruptcy can be a very confusing and intimidating process.  That is why we work so hard to make the process as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you get  an experienced Tampa Tampa bankruptcy lawyer by your side throughout every phase of the bankruptcy process. To schedule a free consultation with a bankruptcy lawyer in Tampa call us today at 800 990 7763

2 replies
  1. ANTHONY G.
    ANTHONY G. says:

    would like to find out if I am eligible for Chapter 7 Relief to avoid foreclosure for HOA fees. I negotiated with the law firm for a payment arrangement but the firm refuses to send me a copy of the agreement to review unless I pay the agreed funds first. In the meantime they stated they would send a copy but have backed out and refuse to send the agreement.

    Reply

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