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Fort Lauderdale Bankruptcy Law Blog

What could endanger a Chapter 7 debt discharge?

Generally, when a person files for a Chapter 7 bankruptcy and meets the qualification requirements for this type of bankruptcy, one of the things they will receive in the bankruptcy is a discharge of debt. Now, this discharge may not apply to all of a person's debts, as there are certain debts which generally are unable to be discharged in a bankruptcy. Also, there are certain things that could jeopardize a person's ability to receive a discharge altogether. In today's post, we will cover some of the things that could lead to a bankruptcy court deciding to not grant a person a debt discharge in a Chapter 7 case.

One is if the person is found to have committed wrongful conduct, such as lying to the court during bankruptcy proceedings, fraudulently destroying or concealing assets  or committing a fraudulent asset transfer. Thus, during bankruptcy proceedings and when preparing for such proceedings, it can be incredibly important for a person to not engage in conduct that could be considered deceptive or fraudulent.  

When credit card debt outpaces savings

A recent study indicates that many Americans may be in a potentially precarious situation when it comes to their credit card debt as compared to their savings. 

In the study, released by, a survey was conducted in which individuals were asked questions about credit card debt and emergency savings. 

When problems arise with a Chapter 13 repayment plan

Generally, in a Chapter 13 personal bankruptcy, a repayment plan is put in place. Once such a plan is established, it is important for the person who is in the Chapter 13 bankruptcy to know and understand the specific terms of the plan and to very closely follow them.

Now, it is possible that after a repayment plan has been set up, a change in the person's financial situation may make it so the plan is no longer well-suited for the situation and the person is in a position where it is very difficult for them to keep making payments per the plan's terms.

Don't let high debt endanger your retirement

As a person grows older, one thing they may become increasingly concerned about is their retirement. One of the big retirement questions that may run through a person's head is: will I have enough retirement savings to have the type of retirement I want? No one wants to end up in a situation where they run out of money after retiring.

Thus, many people work very hard to build up their retirement savings and develop a solid retirement plan. Sadly though, there are things that can sometimes put a person's retirement savings and retirement plans in danger. One such thing is high debt.

Should all Florida high schoolers take a 'Money Course'?

While bankruptcy can be a very useful debt relief tool, a person generally hopes that they will never end up in a financial situation that would cause them to need to avail themselves of this tool.

There are many different things that can lead to a person being in bad financial situations like having far too much debt. One is a person not really having a good understanding of the financial transactions and interactions they engage in. Thus, one of the things that can sometimes help a person stay out of financial trouble is financial literacy. 

The role of the bankruptcy trustee

We here at Nowack & Olson, P.L.L.C., understand that many people are discouraged from filing for Chapter 7 bankruptcy because they are uncomfortable with having their personal finances and financial difficulties scrutinized. You, like countless other Florida residents, may not be familiar with the role and/or duties of a Chapter 7 panel trustee. That is why it can be helpful to learn more about who Chapter 7 trustees are and what they do before moving forward with bankruptcy proceedings.

The National Association of Bankruptcy Trustees explains that a Chapter 7 panel trustee is a private citizen randomly chosen and appointed by the U. S. Trustee division of the U. S. Department of Justice to handle Chapter 7 bankruptcy cases. It is estimated that around one million Chapter 7 bankruptcies are administered annually by the some 1,000 active panel trustees across the country, and that one trustee is capable of administering hundreds of cases each year.

Will I lose my home in bankruptcy?

Once Miami, Florida, residents are at the point of considering filing for personal bankruptcy they are often already facing the prospect of losing their home to unmanageable debt. If you are a homeowner who is currently weighing your debt relief options, it can be helpful to know what may happen to your house in bankruptcy proceedings.

In order to understand how real estate property is addressed through personal bankruptcy, it’s important to recognize how Chapter 7 and Chapter 13 bankruptcy differ. The Nest explains that filing for Chapter 13 bankruptcy does not involve the liquidation of assets in order to pay creditors. As a result, the equity of your home would not be a factor in your case if you were to file under Chapter 13.

Personal bankruptcy and credit card debt

Credit card debt is a major issue for countless people across the state of Florida and the entire country. And while filing for personal bankruptcy is one option that people often turn to for effective debt relief, it’s important that they understand if and how bankruptcy will address their credit card-related debts and difficulties.

The Nest explains that filing for Chapter 13 or Chapter 7 bankruptcy can affect the way that credit card debt is discharged. For instance, people who file for Chapter 13 may still be required to pay a portion of the credit card debt that they owe, while those who file for Chapter 7 may not be held liable for repaying any of the amount due. Similarly, the effectiveness of bankruptcy in eliminating credit card debt can depend largely on whether or not that debt is considered dischargeable at all.

Are debt collectors really allowed to do that?

Being contacted by a debt collector can be an extremely disturbing experience, as it is often a sign that you are facing serious financial challenges. And while having any kind of contact with collection agencies can be uncomfortable, you as a consumer can actually find yourself subject to illegal collections practices. That is why it is so important to be able to recognize improper debt collector conduct when it occurs.

Chapter 13 bankruptcy considerations

Having served the residents of Florida for more than 15 years, we here at Nowack & Olson PLLC understand how difficult it can be to choose the most appropriate form of debt relief for your unique situation. Chapter 13 bankruptcy is known to be one effective personal bankruptcy option, and is distinguished from Chapter 7 bankruptcy by several key factors.

Both Chapter 7 and Chapter 13 bankruptcy are capable of discharging unsecured debts, such as credit card debt and other personal loans. However, filing for Chapter 13 can allow you to maintain ownership of certain kinds of property, while still lowering the amount that you owe on those loans. For instance, you may be able to keep your car and/or house once those loans are adjusted through bankruptcy to lower your monthly payments.

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