Chapter 7

Can I still file a Chapter 7 bankruptcy with the change in bankruptcy laws?
Yes. 85 percent to 90 percent of the people still qualify to file for Chapter 7 bankruptcy under the new bankruptcy laws. There are added requirements under the new laws, but otherwise everything is basically the same.

What is the difference between a Chapter 7 and Chapter 13?
Chapter 7 is called a "Straight Liquidation." In a Chapter 7, we usually eliminate unsecured debts, such as credit cards, medical bills, repossession deficiencies and signature loans. Chapter 13 is a "Debt Consolidation," or "Wage Earners Plan." Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and it allows you to make up the back payments in a 36- to 60-month plan.

Do I qualify for a Chapter 7 bankruptcy?
There is no specific dollar amount of debts to qualify for bankruptcy. The main requirement for filing a Chapter 7 bankruptcy is that you not have a great deal of excess income after the payment of regular living expenses and that your gross income be under the Florida median income.

What is non-dischargeable debt?
The most common non-dischargeable debts are student loans, alimony, child support, property settlement agreements and certain income tax liabilities.

Will I lose any property?
So long as your assets are within the exemptions provided by law, you should not lose any property.

Do I have to list all my creditors?
Yes. The bankruptcy laws require you to list all of your creditors, even if you intend to keep paying them after the bankruptcy. Bankruptcy schedules are signed under the penalty of perjury, and you will be under oath at the Meeting of Creditors.

Can I transfer ownership of my assets to someone else prior to filing bankruptcy so I don't lose them in bankruptcy?
No. These types of transfers within two years of filing Chapter 7 bankruptcy will almost always be considered fraudulent and you could also be subjected to criminal prosecution.

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