Posts made in July 2020

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Filing for Chapter 7 Bankruptcy: The Pros and Cons

Many people have experienced financial hardship and have had to consider declaring bankruptcy. If you have found yourself in this situation, then you need to know the pros and cons of a Chapter 7 bankruptcy versus Chapter 13. A Chapter 7 bankruptcy is known as a “liquidation bankruptcy,” and while it is always best to consult with a Chapter 7 attorney in West Palm Beach, FL, to get the full picture of your individual situation, here are the larger considerations.


It’s Less Expansive Than Chapter 13 – The costs of filing Chapter 7 are generally much less compared to filing under Chapter 13.

Speed of a Chapter 7 Discharge – A no-asset Chapter 7 case is usually completed in under six months after filing the Chapter 7 petition. This means most of your unsecured debts may be eliminated in under 180 days.

You Can Potentially Keep Property – Many people who file a Chapter 7 get to keep all their property, but a Chapter 7 attorney will explain that there are some who do not.

It Stops Debt Collection Lawsuits – Filing Chapter 7 stops the lawsuits of creditors who may be suing you. If the debt is eligible for a discharge, the lawsuit cannot resume, and you get rid of the debt.


Income Requirements – Chapter 7 has specific income requirements to qualify for a bankruptcy discharge under this chapter of bankruptcy. There is a means test, and if your income exceeds the median income for your state, you may not qualify for discharge in Chapter 7.

Non-dischargeable debt – A Chapter 7 attorney can explain that some debts are not dischargeable in bankruptcy, including most student loans and taxes. Child support, marital alimony, some judgments, and most government debts are also not dischargeable in bankruptcy.

Negative Credit Impact – Your credit score may be negatively impacted, and the Chapter 7 remains on the credit report for ten years.

bankruptcy attorney

Questions You Should Ask Your Bankruptcy Attorney

If you’re filing for bankruptcy, then finding the right bankruptcy attorney in Royal Palm Beach, FL, can make a big difference to your case. Many attorneys are willing to provide a free initial consultation to help you determine whether their services are a good fit for your needs. Make sure you take advantage of these meetings by asking the right questions. Here are some critical questions to ask your bankruptcy attorney before you hire him or her.

Do I Pass The Means Test To Qualify For Chapter 7?
The attorney can review your income and your pay stubs at the initial consultation to determine whether you qualify for Chapter 7 bankruptcy. It is important for your bankruptcy attorney to let you know where you will be once you are ready to file, and where you stand in the eyes of the Court.

If Chapter 13 is  Recommended, Why?
Your bankruptcy attorney can explain the five reasons for filing a Chapter 13, and if  Chapter 13 is recommended, then you should ask why. An attorney can collect $2,000.00 more in fees from  Chapter 13 than in a Chapter 7 case, and some firms are known for pushing Chapter 13 cases to generate higher fees.

How Many 707b Objections Have You Handled and Who Prevailed?

Every bankruptcy attorney will eventually encounter an objection to a Chapter 7 case when representing clients in bankruptcy. A 707b objection is typically an objection by the United States Trustee, alleging that the Chapter 7 filer should be in Chapter 13 due to making too much money for Chapter 7.