What Happens Under Chapter 7?
When filing bankruptcy under Chapter 7, you must meet specific federal and state guidelines for income and assets. These are in place to help decide if this chapter or another is best for your particular case. You want the most help, and a chapter 7 lawyer orlando fl can provide you with options that suit your individual needs. If you opt to proceed under Chapter 7, be prepared to turn over all assets including:
- Recreational vehicles
- Cash retirement accounts
What Happens to the Debt?
Because Chapter 7 requires a surrender of your assets, it eliminates all your debt. This blank slate approach has a bit of a backlash - it stays on your credit longer. The minimum time Chapter 7 bankruptcy remains on your credit report is ten years. The reason behind this is because some creditors may not have gotten any payment, thus affecting your creditworthiness longer.
Declaring bankruptcy is not a decision to take lightly, but if it helps to remove the stress and strain of bill collectors and debt, it may be worth looking into. It is best to check out your own state's guidelines and perhaps even talking with an expert before taking the steps of moving forward.