Orlando Chapter 7 Bankruptcy Attorney

Is Chapter 7 Bankruptcy Right for You?

The pressure of mounting debt can quickly become overwhelming. If creditors keep calling and your debt is growing faster than you can pay it back, you may need to file for bankruptcy. With over 25 years of bankruptcy experience, attorney James H. Monroe can help. Call 407-872-7447 or contact us online for a free initial consultation.

How Chapter 7 Bankruptcy Works

In Chapter 7 bankruptcy, all of your legally dischargeable debts are forgiven. In exchange you must surrender all your all of your "non-exempt" assets and forfeit the proceeds to be divided among your creditors. However, many assets qualify as "exempt." Exempt assets are protected assets that individuals get to keep. Most individuals who file for Chapter 7 bankruptcy do not end up surrendering assets.

Know Which Assets Are Exempt

Exempt assets are assets individuals get to keep and are not affected by the filing of a bankruptcy. The rules of exemption are complicated. Your exemptions will depend on whether or not you own a home, the length of time for which you have owned the home and the length of time you have lived in the State of Florida. In most instances, individuals are able to keep their home, often depending on whether or not they are able to catch up with their mortgage payments to avoid foreclosure.

If you own a home or "homestead," you are able to keep up to $1,000 worth of personal property. If you don't own a home, you can keep up to $5,000 of personal property. Bear in mind that these numbers refer to the "auction" value of your assets. Your assets would be worth much less at auction than when you first bought them. Most retirement plans are also protected and exempt from creditors.

Why Consumers File for Chapter 7 Bankruptcy?

While bankruptcy laws have changed over the years, the needs of citizens filing for bankruptcy have not. Contrary to the assertions of lenders, very few bankruptcies result from financial irresponsibility. Nearly all bankruptcies are triggered by forces beyond the individual's control, like unexpected medical bills or hard economic times.

Chapter 7 bankruptcy is a good option for consumers who don't have a large amount of non-exempt assets. If you have many assets, you may want to consider filing for Chapter 13 bankruptcy instead. Talk to a bankruptcy lawyer to find out which option is best for you.

Attorney James H. Monroe in Orlando, Florida has over 25 years of bankruptcy experience. He is certified in bankruptcy law by the American Board of Certification. He has the experience and knowledge it takes to help you move beyond your debt and get a fresh start. To schedule a free initial consultation, call for an appointment at 407-872-7447 or contact us online.