Chapter 7 Bankruptcy Lawyer-Orlando

Chapter 7 Bankruptcy is sometimes referred to as "liquidation bankruptcy."  It is a legal process by which most unsecured debts can be discharged, or wiped out. The filing of a Chapter 7 bankruptcy petition generally triggers an automatic stay in other litigation cases and creates a bankruptcy estate which is administered by the office of the United States Bankruptcy Trustee. It is generally known as liquidation because any non-exempt assets the debtor has may be taken by the trustee and sold to pay back a portion of the debt owed to the creditors of a petitioner.  However, in most Chapter 7 cases, the debtor has little if any non-exempt assets. Thus there is generally no liquidation of assets and as a result most unsecured debts are discharged.

Who Can File Chapter 7 Bankruptcy?

To file for Chapter 7 bankruptcy, you must qualify under the Chapter 7 means test. The means test first compares your income to the median income in your state. If your income is lower than the median income in your state, you can file for Chapter 7 bankruptcy. However, if your income is greater than the median income in your state, you must then calculate the Means Test to determine if you qualify for Chapter 7 bankruptcy. 

Conclusion:

In order to make the most of a bad situation, debtors must learn from bankruptcy and demonstrate greater financial responsibility in the future. A lawyer experienced in bankruptcy law is in a strong position to advise consumers not only before and during the bankruptcy process, but also after, guiding them through the necessary steps to improve their credit ratings and avoid future financial catastrophes.