Chapter 7 and Chapter 13 Bankruptcies:
I have been practicing in the areas of Chapter 7 and Chapter 13 Bankruptcies since 1989, in both Florida and Oklahoma, and am Federally licensed in the Middle District of Florida and the Western District of Oklahoma.
Payment plans for attorneys fees are available. Please call my office to discuss a payment plan that fits your budget. You may be eligible for a waiver of the Court filing fee or eligible to pay the filing fee in installments if your income is low. 941-750-8383 or via email through my contact page for more your your free consultation.
ARE YOU CONSIDERING FILING BANKRUPTCY? DO YOU KNOW YOUR OPTIONS?
TRUSTEE’S BANKRUPTCY INFORMATION
BANKRUPTCY LAW IS A FEDERAL LAW. THIS GIVES YOU SOME GENERAL INFORMATION ABOUT WHAT HAPPENS IN A BANKRUPTCY CASE. THE INFORMATION HERE IS NOT COMPLETE.
WHEN YOU FILE BANKRUPTCY:
You can choose the kind of bankruptcy that best meets your needs:
Chapter 7 – A trustee is appointed to take over your property. Any property of value will be sold or turned into money to pay your creditors. You may be able to keep some personal items and possibly real estate depending on the law of the state where you live.
Chapter 13 – You can usually keep your property, but you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors. The Court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan.
If you have already filed bankruptcy under chapter 7, you may be able to change your case to another chapter.
Your bankruptcy may be reported on your credit record for as long as ten years, that is up to the credit reporting agency. It can affect your ability to receive credit in the future.
WHAT IS A BANKRUPTCY DISCHARGE AND HOW DOES IT OPERATE?
One of the reasons people file bankruptcy is to get a “discharge.” A discharge is a Court order which states that you do not have to pay most of your debts. Some debts cannot be discharged. For example, you cannot discharge debts for –
– most taxes;
– child support:
– most student loans;
– court fines and criminal restitution; and
– personal injury caused by driving drunk or under the influence of drugs.
This discharge only applies to debts that arose before the date you filed. Also, if the Judge finds that you received money or property by fraud, that debt may not be discharged. It is important to list all your property and debts in your bankruptcy schedules. If you do not list a debt, for example, it is possible the debt will not be discharged. The Judge can also deny your discharge if you do something dishonest in connection with your bankruptcy case, such as destroy or hide property, falsify records or lie, or if you disobey a Court order. You can only receive a chapter 7 discharge once every eight years. No one can make you pay a debt that has been discharged, but you can voluntarily pay any debt you wish to pay. You do not have to sign a reaffirmation agreement or any other kind of document to do this.
Some creditors hold a secured claim (for example, the bank that holds the mortgage on your house or the loan company that has a lien on your car). You do not have to pay a secured claim if the debt is discharged, but the creditor can still take the property.
WHAT IS A REAFFIRMATION AGREEMENT?
Even if a debt can be discharged, you may have special reasons why you want to promise to pay it. For example, you may want to work out a plan with the bank to keep your car. To promise to pay that debt, you must sign and file a reaffirmation agreement with the Court. Reaffirmation agreements are under special rules and are voluntary. They are not required by bankruptcy law or by any other law. Reaffirmation agreements –
– must be voluntary;
– must not place too heavy a burden on you or your family;
– must be in your best interest; and
– can be canceled anytime before the Court issues your discharge or within 60 days after the agreement is filed with the Court, whichever gives you the most time.
If you reaffirm the debt and then fail to pay it, you owe the debt the same as though there was no bankruptcy. The debt will not be discharged and the creditor can take action to recover any property on which it has a lien or mortgage. The creditor can also take legal action to recover a judgment against you.