West Palm Beach Personal Bankruptcy
Different types of bankruptcy exist to accommodate the needs of different types of debtors and their unique financial situations. Whether geared towards personal debt or commercial debt, the types of bankruptcy we commonly hear about are simply named according to their placement in the bankruptcy code. Chapter 7 bankruptcy, also known as liquidation bankruptcy, is a legal action available to both individuals and corporate entities. Those who file federal Chapter 7 bankruptcy do so to discharge their debts through means of liquidation.
The process of filing Chapter 7 bankruptcy
When an individual debtor or troubled corporation files for Chapter 7 bankruptcy, a comprehensive list of all assets and liabilities associated with the debtor must be submitted, along with the:
- petition for bankruptcy
- schedule of current income and expenditures
- schedule of executory contracts and unexpired leases
- other paperwork required to claim bankruptcy
Contacting an experienced bankruptcy lawyer to keep your affairs in order is highly advised. A bankruptcy attorney has knowledge from previous similar cases that can give you a heads-up about what to expect throughout the entire bankruptcy process, providing you peace of mind at every turn.
After your petition for West Palm Beach Chapter 7 bankruptcy is filed, a trustee is appointed by the court to administer your bankruptcy estate. The trustee is responsible for liquidating your non-exempt property and distributing it based on the priorities in the bankruptcy code. The trustee can also identify potential sources that can be used to pay your creditors back for the debt you accumulated. In addition, the trustee can dismiss your case or deny you discharge from bankruptcy if fraud, perjury, or ineligibility on your part becomes evident.
Eligibility for Chapter 7 bankruptcy
To qualify for Chapter 7 bankruptcy, the current monthly income of a debtor must be less than the stated median or have allowed deductions to bring the debtor under the presumption of abuse. If you do not qualify but special circumstances justify your additional expenses or adjustments to current monthly income, you may still be eligible for Chapter 7 bankruptcy if you challenge the results of your means test. However, most debtors that do not qualify for Chapter 7 bankruptcy may elect to file for Chapter 13 bankruptcy instead.
Chapter 7 bankruptcy lawyer in West Palm Beach
The Law Office of Michael A. Kaufman, P.A. creates effective legal solutions for your debt at an affordable cost. To discuss your legal needs for your Chapter 7 bankruptcy, please contact Michael A. Kaufman, Esq. at 561-207-8391 today for a free consultation.