Will chapter 7 bankruptcy Florida be good for you?
There are many reasons if a person wants to file for bankruptcy. We all know that how difficult it can be emotionally and socially, to file for bankruptcy. But to add to this, there are several law jargons related to bankruptcy. There are many different rules applicable to every different case and these are described in various jargons. The most common term which people in Florida instantly think of is the chapter 7 bankruptcy Florida.
So what is this chapter 7 bankruptcy law? Well this bankruptcy law is also known as a straight bankruptcy or a liquidation form of bankruptcy. A Chapter 7 bankruptcy Florida happens when the Court rules that a person, who is a Florida citizen, should be cleared of all his debts and is penalized by liquidating or taking away his assets which are not classified as an exempt.
Now what are exempt properties? The properties which are protected by the law and hence cannot be taken away from the debtor are classified as exempt properties of the debtor. An example is when a debtor’s home cannot be taken because the Florida Constitution protects the equity in the property. According chapter 7 bankruptcy Florida, some other properties which are also considered exempt are like interests in IRS approved retirement or pension plans and interests in insurance policies, money in the bank that have been accrued from the wages, government benefits, $1000.00 worth of equity in any automobile, $1000.00 worth of personal property. There are several other forms of exemptions also.
It is permissible to keep secured debts, which are allowed to go through bankruptcy untouched and unaffected. These secured debts are things like your home, your car and other personal assets that you have purchased such as appliances, jewelries etc. If in case the debtor decides not to maintain some of your secured debts, he is permitted to give up those properties and other debts that are connected with that submission.
Also, the debtor can hold on to one or two credit cards that are not affected by the bankruptcy. This process is termed as “affirmation” because you are literally reaffirming the debt. In simple words, the act of reaffirming your debt gives the impression to your creditor that you are responsible for paying your debts. Because you are keeping it, you are holding your ground conscientiously and your bankruptcy will offer you no security from it.
In most cases, clients typically maintain at least a single card, one that has the lowest balance. It is a practical call because a credit card is needed when you rent a car or book airline tickets and it always comes in handy in an emergency.
Basically, chapter 7 bankruptcy Florida gives most individuals the advantage of resolving their debts and eventually erasing the debts of their unsecured cards and medical bills and protects all of their belongings. A handful may lose some property but it rarely happens. A Chapter 7 method is an easy process and can be arranged in a matter of weeks, completed promptly and effectively.
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