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Major Points To Know Before Filing A Chapter 7 Bankruptcy

Major Points To Know Before Filing A Chapter 7 BankruptcyIn this article, you can discover:

  • How bankruptcy will impact ongoing civil cases or private property.
  • The purpose of creditor meetings.
  • The trustee’s role in a Chapter 7 bankruptcy.

Will A Bankruptcy Impact Ongoing Civil Cases?

Any lawsuits filed against someone are automatically frozen when someone files for bankruptcy. This includes cases where a judgment has already been made. The bankruptcy will usually nullify the civil case. In many situations, people file for bankruptcy when they are being sued. This provides a way to stop the process and start fresh, which can be a lifesaver.

Will A Person Lose All Of Their Property If They File For A Chapter 7 Bankruptcy?

Most people can keep their homes and cars when they file for bankruptcy. However, in some cases, people may lose their homes or cars. In Florida, the homestead exemption protects most people’s homes from being taken into bankruptcy. The car exemption protects most people’s cars from being taken into bankruptcy. However, in some cases, people may have to give up their home or car depending on the property’s value and other factors.

The state only allows a $1,000 motor vehicle exemption when filing bankruptcy. There was an attempt to change this to $5,000, but it was vetoed by the governor. This means many people may still lose their cars even though their values are higher than average. Those with equity in their vehicles may be required to buy it back from the court.

Most people who file for bankruptcy can keep their personal belongings, furniture, and electronics. The amount you can keep depends on the value of your assets and how much you have. In some cases, the court may require you to give up some of your assets as part of the bankruptcy process. However, most people are not required to give up much of anything.

What Happens At The Creditors Meeting?

After your bankruptcy case is filed, you will meet with creditors and a trustee about a month later. This meeting is also known as a 341 meeting.

At this meeting, trustees represent creditor interests and try to determine what assets they can claim. To do this, they ask questions about pending lawsuits or windfalls that may occur, like inheritances. This is also where it’s decided how much money you owe to the court.

An experienced attorney can guide you through a 341 meeting and protect your best interests.

At your 341 meeting, you’ll learn what you owe to the court and your creditors and what you need to do to exempt any equity in your car. This is also a chance for creditors to show up and ask questions, though it’s rare for them to do so.

What Is The Trustee’s Role In A Chapter 7 Bankruptcy Case?

A trustee’s role is to protect creditors’ interests. They’ll oversee your filing, ensuring all necessary documents are in order and that you’re providing everything required, such as bank statements and tax returns. From there, the trustee will determine whether or not the filer is eligible for bankruptcy. In most cases, this is a simple matter.

However, there is more to being a trustee than these steps. Their job is to ensure people aren’t taking advantage of bankruptcy laws. That’s why they’ll examine their bank statements closely, checking for any suspicious activity in recent months. By doing so, they can ensure that only those who genuinely need bankruptcy protections can take advantage of them.

With the guidance of a skilled attorney for Bankruptcy Law Cases, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Bankruptcy Law in Florida, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (407) 305-5599 today.

Alec Solomita, Esq.

Call For A Consultation
(407) 305-5599

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