Our bankruptcy attorneys support clients and businesses in Fort Lauderdale and Miami who need a powerful solution to their crushing debt. If you have very few assets and an income that is too low to keep up with payments, Chapter 7 may be the right path for you.
Starting the path to financial recovery can be challenging, but filing for Chapter 7 bankruptcy offers a range of benefits that can help you regain control of your finances and move toward a more stable future. Some benefits of filing for Chapter 7 are:
To learn more, call (954) 932-5377 for a free consultation with our Fort Lauderdale Chapter 7 attorneys. Our team at LSS Law has years of experience.
During this process, you will likely need to complete bankruptcy counseling and a financial management course. You will also need to attend the Meeting of Creditors, at which you will explain your situation and why you need to file.
To qualify for Chapter 7, you will need to pass the means test. The means test determines whether you are eligible for Chapter 7 by assessing your monthly income, expenses, and level of debt. If your income is too high, the court will decide you are capable of paying your debt in full or, if necessary, reorganizing it through Chapter 13. Generally, you will pass the means test if your income is less than the median income of your state.
Chapter 7, therefore, may be best for you if you have a very low income. Furthermore, you should either have few non-exempt assets or be willing to lose them through liquidation.
Other requirements for Chapter 7:
Deciding whether Chapter 7 is right for you will be a challenge without years of experience and training. At LSS Law, our team is armed with the knowledge and resources needed to assist you during this trying time. If you are unsure whether bankruptcy is the best option, or you need a dedicated advocate by your side, we are the team for you.
Call (954) 932-5377 to begin with a complimentary consultation with our Chapter 7 attorneys in Fort Lauderdale. LSS Law is ready to help you.
While Chapter 7 bankruptcy can discharge unsecured debts, it does not directly address secured debts like mortgages and car loans. However, it can free up funds by eliminating other debts, making it easier for you to make mortgage or car payments. In some cases, negotiating with your lender or loan servicer may lead to more favorable terms, making it more manageable for you to keep your home or vehicle.
When considering filing for Chapter 7 bankruptcy in Florida, it’s essential to understand the income limits set by the state. These limits are determined through a process known as the “means test chapter 7 Florida,” which evaluates your financial situation to establish whether you qualify for this type of bankruptcy.
The means test consists of two primary components:
1. Comparing your income to the state median:
The first step in the means test is comparing your average monthly income for the six months preceding your bankruptcy filing to the median income for a similar-sized household in Florida. If your income is equal to or less than the state median, you are eligible to file for Chapter 7 bankruptcy.
2. Evaluating your disposable income:
If your income exceeds the state median, you’ll need to proceed to the second part of the means test. This portion involves a more detailed analysis of your income and expenses to determine your disposable income. If your disposable income is insufficient to repay a significant portion of your unsecured debts, you may still qualify for Chapter 7 bankruptcy.
It’s important to note that the Florida median income figures are subject to change periodically. As of 2021, the latest figures for median income per household size in Florida is:
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