Chapter 7 Bankruptcy Lawyers and Attorneys in Melbourne, Palm Bay and Brevard County Florida

Chapter 7 bankruptcy process is enacted via the United States Code (U.S.C) is a collection of Federal Laws in the country. It is a compilation of 51 Titles, each consisting of several Chapters. Chapter 7 of the USC addresses the issue of liquidation which is a part of the bankruptcy laws in the country. This is the prevailing type of bankruptcy in the United States of America. Chapter 7 refers to different things for different entities.

Business Bankruptcy

A business files for bankruptcy under Chapter 7 in the Federal Court when it is largely in debt and is unable to repay its creditors. But it is not the prerogative of the business itself.

Sometimes, it might even be forced by creditors to do so. After filing Chapter 7, the business ceases to operate. This is followed by appointment of a Chapter 7 Trustee, liquidation of the assets and repayment to creditors. This does not always imply the loss of jobs for employees.

Personal Bankruptcy under Chapter 7

Individuals who are permanent residents of the United States can file for bankruptcy under Chapter 7. In case of personal bankruptcy, however, the individual is entitled for exempt property. This means that she/he can keep a certain part of the property from seizure and sale. This includes security interests, property mortgages, etc. Different states allow different values of property to be kept as exempt. Repayment of creditors is done by liquidation of other assets.

Personal bankruptcy is seen by many as an opportunity for a fresh start. Once a badly indebted individual has chalked out a systematic and organized way of paying their creditors, they can start afresh and work on re-establishing credit history

Types Of Debt

    • There are numerous debts which, in accumulation, can lead to bankruptcy:
      • Credit Card
      • Medical
      • Mortgage
      • Student Loans
      • Insurance
      • Car Payments
  • Reasons For Personal Bankruptcy
    • Any kind of debt does not necessarily mean bankruptcy. It is due to mismanagement of finances or other circumstances that an individual may file for bankruptcy. The most common reasons for bankruptcy are:
      • Medical Expenses
      • Job Loss
      • Divorce
      • Avoiding Foreclosure
      • Uncontrolled Spending
      • Unexpected Disaster
  • How To Recover From Personal Bankruptcy?
    • Paying Bills On Time
      • Your bill-payment routine builds up 35% of your credit score. This makes it a deciding factor in having a good credit score. Hence, ensure on-time bill payments.
    • Building A Shield
      • This involves assessing the fundamental reasons why bankruptcy was filed. It will further help you to make amendments in your spending habits. This might include preparing a budget or setting up an emergency savings fund.
    • Updating Credit Reports
      • You need to ensure proper reporting of closed accounts and discharged debts. This may involve calling for free credit reports from an agency.
    • Judicious Use Of New Credit
      • Banks offer services and products to assist in the process of credit rebuilding. Applying for a secured credit card is one option. Using your card every month in a way that uses only a fraction of your credit limit is a great way to show credit worthiness.