FAQs about Chapter 7 Bankruptcy

Orlando Bankruptcy Attorney | Chapter 7 Bankruptcy: FAQs

Orlando Chapter 7 Bankruptcy FAQs:

• What are the most common reasons for filing Chapter 7 Bankruptcy?
• What is the Means Test?
• Will my employer find out about my Chapter 7 Bankruptcy?
• What debts are not discharged in Chapter 7 Bankruptcy?
• What happens to my credit rating after Chapter 7 Bankruptcy?

Orlando Chapter 7 FAQs Overview:

What are the most common reasons for filing Chapter 7 Bankruptcy?
The most common reasons for consumer bankruptcy in Orlando and elsewhere are: unemployment; large medical expenses; marital problems and other large unexpected expenses. Most people do not just run up their credit cards irresponsibly with the expectation that you can just wipe out the debts in a bankruptcy.

What is the Means Test? 

The Chapter 7 Bankruptcy law is designed to make sure that Chapter 7 bankruptcy protection is given to those who need it most. The Chapter 7 means test is a formula applied to determine whether or not the consumer should have enough money available to make some minimal payment to creditors in a Chapter 13 bankruptcy plan. In most cases, those who want to file Chapter 7 Bankruptcy, can.

Will my employer find out about my Chapter 7 Bankruptcy?

Bankruptcy petitions are public records. However, under normal circumstances, unless your employer or landlord is a creditor, it will not know you filed a bankruptcy petition. If your employer or landlord is a creditor it must be listed as a creditor on the schedules and will receive notice of the bankruptcy proceeding.

What debts are not discharged in Chapter 7 Bankruptcy? 

The debts that cannot be discharged are: Debts for alimony and child support; Certain taxes, Debts for certain educational benefit overpayments or loans made or guaranteed by a governmental unit; Debts for willful and malicious injury by the debtor to another entity or the property of another entity; Debts for death or personal injury caused by the debtor’s operation of a motor vehicle while the debtor was intoxicated from alcohol or other substances; and Debts for certain criminal restitution orders. The debtor will continue to be liable for these types of debts to the extent that they are not paid in the chapter 7 case. Debts for money or property obtained by false pretenses, debts for fraud or defalcation while acting in a fiduciary capacity, and debts for willful and malicious injury by the debtor to another entity or to the property of another entity will be discharged unless a creditor timely files and prevails in an action to have such debts declared non-dischargeable.

What happens to my credit rating after Chapter 7 Bankruptcy?

The bankruptcy is a judgment and will be listed for a period of up to 10 years after the discharge. You can reestablish credit and get an "A" credit mortgage three to fours years after the discharge of bankruptcy. However, it may be very difficult to get a credit card until the bankruptcy falls off of your report.

Call our Orlando/Winter Park bankruptcy Law Firm at 407-647-8833 or contact us at our Orlando office to make an appointment for a free consultation.

BAKER LAW, PL serves the Central Florida and seven-county Orlando area, including the cities of Sanford, Lakeland, Lady Lake, Kissimmee, Maitland, Lake Mary, Oviedo, Winter Garden, Winter Park, Windermere, Lake Nona, Apopka, Mount Dora, Winter Springs, Longwood, North Orlando, South Orlando, East Orlando and West Orlando, Melbourne, Titusville, Cape Canaveral, Daytona Beach and New Smyrna Beach, and the counties of Orange, Seminole, Lake, Polk, Brevard, Volusia and Osceola.