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 and you should consult with a bankruptcy law firm in Tampa before taking action. Additionally, there are legal requirements for Chapter 7 bankruptcy in Florida which must be satisfied in order 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 because the debtor (borrower) may be ordered by a bankruptcy court to sell certain assets as one of the requirements 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).
Financial Requirements for Chapter 7 Bankruptcy
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 Requirements for Chapter 7 Bankruptcy
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. We will help ensure your rights are protected, keep you well-informed every step of the way, and help you receive the utmost protection bankruptcy can offer. To schedule a free consultation with a bankruptcy lawyer in Tampa call us today at 800 990 7763