What is Chapter 7 Bankruptcy?
Daytona Beach Chapter 7 bankruptcy will clear you from having to pay back your debt. A chapter 7 bankruptcy clears you of your debt obligations by liquidating your assets and using the money from the proceeds of the liquidation to pay off the balances that you owe to your lenders. Following the liquidation your lenders will forgive the rest of the debt and your debts with them will be reset to zero.
The assets that you can expect to be sold in liquidation are your home, vehicles, boats, and other designated assets. Your property that cannot be liquidated is your clothing, household furnishings, and any tools that you need for employment. There are other assets exempt from liquidation in the state of Florida, and a Bankruptcy attorney in Daytona Beach can tell you which of your assets are on that list.
There are certain requirements that must be met in order to qualify for a chapter 7 bankruptcy in Daytona Beach. You must be delinquent on your monthly bills and be able to prove that you do not have the disposable income available to pay them. Your level of income plays a pivotal role in whether you will qualify for a chapter 7 bankruptcy, or a chapter 13 bankruptcy. If your income falls below the median income in Florida, then you may qualify for a chapter 7, but if it is over the median then you will not be able to file chapter 7. Your monthly expenses are used to calculate the amount of disposable income you have by subtracting them from your monthly income. The lower the disposable income you have the less likely you are to be able to afford your debt obligations and the more likely you are to be eligible to file for chapter 7 bankruptcy. You can also take the means test to help determine your eligibility.
Filing chapter 7 bankruptcy will have a tremendous impact on your credit score and your financial future, so it is important to evaluate. With the help of bankruptcy lawyer you can figure out if bankruptcy is right for you, and which chapter of bankruptcy you are eligible to file. Contact the Law Offices of Justin McMurray P.A. to schedule a free consultation with a Chapter 7 Bankruptcy attorney in Daytona Beach today.