Palm Coast Chapter 7 Bankruptcy Lawyer
Chapter 7 bankruptcy is one of the most common types of bankruptcy filed in Palm Coast, and throughout the country. Through a Chapter 7 bankruptcy, you can discharge most or all of your debt, depending on the type of debt you are carrying. You will have to pass a means test to show you do not have enough income to repay the debt, and some of your assets may be sold to repay a portion of the debt owed. Many people who file Chapter 7 though, do not lose any property at all. A Palm Coast Chapter 7 bankruptcy lawyer can help you through the process and give you the best chance of a favorable outcome.
How Does Chapter 7 Bankruptcy Work?
Every bankruptcy case starts with filing a petition with the bankruptcy court. A judge will immediately issue an automatic stay, which prevents creditors and debt collectors from contacting you, trying to collect on the debt, or taking legal action against you. From there, you will have to take many steps during the bankruptcy process.
One of the first steps is the means test, which is a standardized form that shows that your income is below the state average. The form is filled out when you file bankruptcy. A trustee will be assigned to your case once the petition is filed and will oversee the process. This includes presiding over the 341 meeting, also called the creditor’s meeting. Creditors are not required to attend this meeting, but it does provide them with an opportunity to ask questions about your financial situation. You are required to attend.
You should also work with a Palm Coast Chapter 7 bankruptcy lawyer who can advise you about any property that is exempt from being sold. Non-exempt property may be sold to repay creditors, but Florida law outlines many exemptions borrowers can use to protect certain assets. You will also have to attend a credit counseling course that will help you better manage debt in the future. After reviewing your exemptions and your debt, a judge will make a decision on what debt you can discharge.
Non-Dischargeable Debt in Palm Coast
While a Chapter 7 bankruptcy does allow you to discharge much of your debt, there are some types that bankruptcy will not discharge. These include:
● Support payments, including child support and alimony
● Federal student loans, with the only exception being if it is creating an “undue hardship”
● Fraudulent debt
● Credit card purchases or loans valued at $1,150 or more that was incurred 60 days prior to filing
● Tax debt
● Fines and penalties resulting from a criminal case
● Any debt listed in a prior bankruptcy filing
● Any debt caused by a DWI that caused personal injury or death
Call Our Chapter 7 Bankruptcy Lawyer in Palm Coast for Legal Advice
Filing Chapter 7 bankruptcy can provide a fresh financial start, but you may face certain obstacles along the way. At the Law Offices of Carol M. Galloway, P.A., our Palm Coast Chapter 7 bankruptcy lawyer can help you overcome them while advising you of your legal options every step of the way. Call us now at 904-694-5489 or contact us online to schedule a free consultation.