West Palm Beach Bankruptcy Lawyer
Helping Clients Obtain Freedom from Debt
Under the United State Bankruptcy Code, personal bankruptcy may be filed by either filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Chapter 7 Bankruptcy is a liquidation of non-exempt assets which are distributed among your creditors to pay off your debt, while Chapter 13 Bankruptcy is payment plan made up of disposable income over a period of 3 to 5 years. If you are considering filing for bankruptcy, let Asghar Law help. Our team has the experience to help you get through the proceedings with confidence.
Dial (561) 609-0032 now and schedule your 60-minute consultation with the West Palm Beach bankruptcy lawyer at Asghar Law. You can also contact us online.
The Limitations of Bankruptcy
Not everyone qualifies for Chapter 7 Bankruptcy. In order to do so, an individual must make less than the state median income or qualify under the "means test." An individual who qualifies can file for Chapter 7 Bankruptcy and receive relief for eight years from the date of the debt’s discharge.
Chapter 13 Bankruptcy may only be filed if the individual has less than $307,675 in unsecured debt and less than $922,975 in secured debt. Chapter 13 discharge won’t be granted if debtor received discharge in Chapter 7, 11, or 12 four years earlier or more or a previous Chapter 13 discharge two years before.
Eliminate Your Debt
Chapter 7 Bankruptcy eliminates many kinds of debt, providing you with much-needed relief and peace of mind. However, there are some debts which cannot be resolved through Chapter 7 Bankruptcy.
Debts which cannot be forgiven include:
- Student loans
- Support obligations
This will take place immediately upon discharge by the bankruptcy court. Chapter 13 Bankruptcy is similar to Chapter 7 Bankruptcy in that all debt is discharged except for student loans, support obligations, and taxes. However unlike Chapter 7 Bankruptcy, an individual is considered liable to their creditors in a Chapter 13 Bankruptcy until the payment plan is completed in 3 to 5 years.
Effect on Credit Score
The incidence of Chapter 7 Bankruptcy will remain on a person’s credit score for up to 10 years from the date of the filing. A Chapter 13 Bankruptcy may also appear up to 10 years on your credit report, however some creditors may report it only for 7 years.
If you are interested in having a bankruptcy consultation, please call (561) 609-0032 today.