Chapter 7 Bankruptcy Lawyer in Jupiter, FL

How Does Chapter 7 Bankruptcy Work?

Step 1: Preparing Your Petition 

The first step to filing for Chapter 7 bankruptcy in Florida involves completing multiple bankruptcy forms that we will submit to the local bankruptcy court on your behalf.

These forms will require you to detail various important aspects of your financial situation, including:

• Current gross income and monthly living expenses
• Property ownership (personal and real property)
• Debts (creditors, types, amounts)

You must then complete two additional financial management courses. These courses, known as debtor education classes, are typically brief, covering basic principles of budgeting, etc.

Step 2: Submitting the Means Test

Chapter 7 is typically available only to certain individuals and spouses, known as “consumer debtors.” To determine your eligibility, the bankruptcy court uses a means test to “compare” your level of debt to your level of income.

You are eligible for Chapter 7 bankruptcy if you pass the means test by exhibiting:

• Very little or no disposable income
• A significant amount of unsecured debt
• A below-average income

Step 3: Filing a Bankruptcy Petition

With our help, you can then submit your petition to the local bankruptcy court, which will review the forms and determine your eligibility. Our Jupiter Chapter 7 bankruptcy lawyer can work to help you fill out your bankruptcy forms correctly, addressing any potential issues proactively.

It is important to remember that as soon as you submit the bankruptcy petition, you must immediately:

• Stop spending any more money on existing credit lines—open lines of credit can be seen as an abuse of the bankruptcy process.
• Stop making direct repayments to individual creditors—any impulse to repay creditors will only make it more challenging to discharge the debts in bankruptcy.

Step 4: Attending the Meeting of Creditors

A few weeks after you submit the bankruptcy forms to the court, we will arrange a formal meeting between you and the Chapter 7 trustee assigned to your case. This meeting, known as the "meeting of the creditors," is a crucial part of the process where your financial situation is presented and discussed. Individual creditors who are informed that you filed for bankruptcy are also welcome to attend these proceedings. Our attorneys will be present during this meeting, during which the trustee will review your bankruptcy petition and ask you questions about your financial situation, ensuring all information is accurately represented and disclosed.

Step 5: Completing the Debt Education Course 

Federal bankruptcy laws require you complete your debtor education course within 45 days of meeting with the creditors. Completing these courses is critical to obtaining the final discharge of your debts.

Step 6: Discharging the Debt 

After all the necessary papers are filed, the bankruptcy court will issue a no-lien discharge order that releases you from all obligations to the discharged debts. It's important to understand which debts can be discharged and what your responsibilities are post-discharge to effectively rebuild your financial future. Most individuals or small-business owners who file for Chapter 7 do not own property or assets that are potentially eligible to be liquidated. There are also several exemptions in place that many of our clients meet, including homestead exemptions that protect their residential properties, offering peace of mind while sorting financial liabilities.