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Chapter 7 Bankruptcy

Often referred to as “straight bankruptcy,” Chapter 7 bankruptcy is a process, organized under federal law, that provides consumers with the opportunity to discharge their unsecured debts. Common debts eliminated by filing for Chapter 7 bankruptcy include: credit cards, medical bills, personal loans and mortgage debts. When a Chapter 7 case is filed, all of the debtor’s property is temporarily under supervision of the bankruptcy court and a case trustee. Property that is considered “exempt” is retained by the debtor; conversely, property that is “nonexempt” is subject to sale by the bankruptcy trustee with the proceeds distributed to creditors. It is important to note that as a practical matter, most people are able to shed their unsecured debts through Chapter 7 with out losing any property. A typical Chapter 7 bankruptcy case usually lasts between 4 to 5 months. At the end of the process, the bankruptcy court issues a discharge that operates as a permanent injunction preventing creditors from seeking to collect on debts that were included in the bankruptcy.

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Can Creditors Garnish My Wages in Florida?

Last updated Sept. 21, 2017. Yes, Florida law does allow creditors to garnish your wages. However, a creditors’ right to garnishment, and the amount they’re entitled to garnish, hinges on whether you qualify as a “head of family” under Florida statute 222.11. The Florida statutes define a head of family as “any person who is…

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Chapter 7 Bankruptcy in Florida: What You Need to Know

Florida is known for a popular amusement park, warm weather, beaches, and its population of American alligators — the latter of which was designated as the state’s official reptile (and unofficial general state symbol) in the 1980s. In fact, Gatorade was named after the University of Florida Gators, where the sports drink was first developed….

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Should I Sign a Reaffirmation Agreement?

Signing Reaffirmation Agreements: A Good Idea? Your mortgage lender is demanding that you “reaffirm” a mortgage note on your residence in your bankruptcy case. Should you agree to do so? First the basics: There are two parts to your agreement with the mortgage lender regarding your residence. The first part is the note, your promise to…

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How Bad is Bankruptcy For Your Credit?

What stops people from filing for bankruptcy? Is it fear, pride or a belief that declaring bankruptcy is in some way unethical? If you stopped and asked 10 people on the street for the number one reason not to file bankruptcy, most would mention damage to their credit. How Bad is Bankruptcy For Your Credit?…

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Tax Refunds Must Be Disclosed on Your Bankruptcy

‘Tis the season when bankruptcy trustees are taking tax refunds. Potential tax refunds MUST be disclosed on your bankruptcy case, just like your couch and car. Not disclosing your state and federal tax refund is often a sure way to forfeit your tax refund, this means the trustee will get to keep your funds. The…

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