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Parkland Chapter 7 Bankruptcy Attorney

Debt looms over the heads of millions of Americans like a dark, perpetually raining cloud. Late payments incur added fees and interest, which, over the months and years, can become larger than the original expenditure. It is impossible for many families to recover from serious debt, as their budgets are already stretched thin. Many families are forced to take on second, third, or even fourth jobs, or cancel critical expenses, such as medical insurance. Finding a higher paying job or working an additional 20 hours a week are not viable options in most cases—Chapter 7 bankruptcy is. The Parkland Chapter 7 bankruptcy attorneys at the Law Offices of Barry S. Mittelberg assist individuals and families with filing for bankruptcy to get a fresh start.

How Common is Chapter 7 Bankruptcy?

In the 12-year span between 2005 to 2017, 8.7 million Americans filed for Chapter 7 bankruptcy—the most common type of bankruptcy according to the U.S. Courts. There are close to half a million Chapter 7 bankruptcies filed each year. Chapter 7 bankruptcy is a popular choice because it allows the debtor to get a fresh start much more quickly than Chapter 13, which can take up to five years for a payment plan to conclude. Chapter 7 bankruptcy can be used to dispel medical expenses, payday loans, credit card debt, and more.

Unsecured Debt

Chapter 7 bankruptcy can only be used to discharge unsecured debt. Unsecured debt is debt that is not secured by an underlying asset, such as your house. If you fall behind on mortgage payments, for example, the bank can take your house from you. The same is true for your automobile if you have defaulted on your monthly auto payments. Unsecured debt includes medical bills, credit card debt, utility bills, student loans, most lines of credit, payday loans, and most other types of debt or loans.

The Basics of Chapter 7 Bankruptcy

The moment you file a petition for Chapter 7 bankruptcy, an automatic stay is put in place, which notifies all of your creditors that you have filed for bankruptcy. The automatic stay prohibits creditors and debt collectors from continuing their efforts to collect during bankruptcy. The stay stops wage garnishment, foreclosure, repossession, lawsuits, and other collection practices. Upon filing for Chapter 7 bankruptcy, your attorney will work with you to compile a list of assets and debts. A bankruptcy trustee will determine what assets, if any, should be sold off to pay back creditors. Liquidation of assets is not always necessary, as in some instances a “no asset case” may apply. Next, a quick interview, that typically lasts around five minutes, with the trustee is all that it takes to discharge your unsecured debt.

Call Our Law Offices Today to Find Out if Chapter 7 Bankruptcy is Right For You

Only individuals with household incomes of less than the median income for their family size are eligible to file for Chapter 7 bankruptcy. This comes to around $46,000 for a single-person household and $74,000 for a Florida family of four, according to the Census Bureau. Our Parkland Chapter 7 Bankruptcy attorneys here at the Law Offices of Barry S. Mittelberg can help you get started today. Call us at 954-752-1213 for a free consultation.

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