CHAPTER 7
Wipe the Slate Clean!
Chapter 7 bankruptcy allows people the ability to wipe the slate clean of debt and move on with their lives. Overwhelming mortgage debt can be completely wiped out in exchange for handing over
the house to the bank, without consequences of taxable “forgiven debt,” or collection attempts on a
deficiency judgment.
Here Are the Facts…
It is often referred to as a “liquidation” bankruptcy, but the fact is that most often there is no
property that can be liquidated to pay to creditors. This is because you are granted certain exemptions of real and personal property that essentially doesn’t count as an asset. It is important to know how to properly apply these exemptions in order to avoid losing property or having to pay money into the bankruptcy estate.
We Can Help!
The Volusia County bankruptcy attorneys at Abeles & Karle, PLLC
will help you to determine if Chapter 7 bankruptcy is right for you, and guide you through each step of the process.
The Chapter 7 Process
A chapter 7 bankruptcy filing starts with the filing of the Petition. You will gather information regarding your assets, income, and expenses. We will prepare the Petition and meet with you to carefully review and sign it. Once you have completed the required credit counseling course, the Petition is then filed electronically with the bankruptcy court.
About 30 to 40 days after filing the case, we will meet again at the 341 meeting. The 341 meeting is an informal conference with you and the bankruptcy trustee. The trustee is an individual assigned by the court to verify the information in your petition, and to determine if there are any unexempt assets which could be liquidated for creditors. The Trustee will put you under oath to ask if the information in the Petition is true, correct, and complete. They will ask a few questions regarding future assets that you may have, such as from a personal injury lawsuit or inheritance. Typically, the meeting takes about 3 minutes. Then it is just a matter of waiting on the bankruptcy court to issue the Order of Discharge in about 60 to 90 days.
