We understand that you may not know where to turn for assistance when your debt is mounting, and you are struggling to meet long-term financial obligations.
We will work with you to put an end to constant collection calls and letters. If you are facing uncontrollable debt or abusive creditors, the team at YEB Law can help you get your financial affairs back on track through negotiation or bankruptcy options such as Chapter 7. *
One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a “fresh start.” The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations. Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.
*Only in Florida
Overall, the process to file a Chapter 7 Bankruptcy Petition includes, but is not limited to, the following steps:
- Preparation: Preparation of the Voluntary Petition, Schedules, and Statement of Financial Affairs
- Automatic Stay: The automatic stay provided by 11 U.S.C. §362 stops most collection efforts by creditors against you during the bankruptcy process. *There are exceptions to this rule. For example, secured creditors, such as mortgage lenders, can seek relief from the automatic stay to continue with collection efforts against the real property.
- Assignment: The case is assigned to a Chapter 7 Bankruptcy Trustee (the “Trustee”). Between 21 and 40 days after the Bankruptcy Petition is filed, a Section 341 Meeting of Creditors is held with you, your Bankruptcy attorney, and the Trustee. The Trustee will ask general questions to you, under oath, regarding your Bankruptcy paperwork and other matters related to your assets and liabilities.
- Discharge: A discharge releases individual debtors from personal liability for most debts and prevents the creditors owed those debts from taking any collection actions against the debtor. Because a Chapter 7 discharge is subject to many exceptions, debtors should consult competent legal counsel before filing to discuss the scope of the discharge. Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of Chapter 7 cases. In most cases, unless a party in interest files a complaint objecting to the discharge or a motion to extend the time to object, the bankruptcy court will issue a discharge order relatively early in the case – generally, 60 to 90 days after the date first set for the meeting of creditors.