Boca Raton Chapter 7 Bankruptcy Lawyer
Debt often feels like a pit of quicksand that you cannot escape. But if you are facing creditor harassment or imminent collection activity, then bankruptcy may be your best option for escaping your debt pit–and the qualified Boca Raton Chapter 7 bankruptcy lawyers at Nowack & Olson can help. We can review your debt situation and help you decide whether bankruptcy is the right option for you and your family.
What Is Chapter 7 Bankruptcy?
Unlike other types of bankruptcy that focus on reorganizing debt, Chapter 7 is about giving the debtor a fresh start. A Chapter 7 filing is often called a “liquidation,” since it involves liquidating some of the debtor’s assets to repay creditors, and then discharging any remaining debt. A discharge does not technically erase the debt–but it does eliminate your legal obligation to repay it.
The term “liquidation” scares many people away from Chapter 7 because they fear losing what little property they have left. But in reality, many Chapter 7 debtors get to keep most, if not all, of their existing property. This is because federal and state law exempts certain categories of property from the bankruptcy process. For example, your primary residence is generally exempt from bankruptcy, although your property is subject to a size limit that varies depending on where you live.
As long as you make a full and honest disclosure of your assets on your Chapter 7 petition, neither the bankruptcy court nor your creditors can touch any of your exempt assets. But it is also critical to understand that Chapter 7 bankruptcy is subject to a means test. In other words, if you own a large amount of assets–or earn more than the median income for a Florida household–then you cannot file for Chapter 7. You may still be able to file for other types of bankruptcy, however, such as Chapter 13. At Nowack & Olson, we can advise you of which bankruptcy fits your particular financial situation, as well as explain in greater detail the relative benefits and drawbacks of Chapter 7 bankruptcy.
The Chapter 7 Bankruptcy Lawyers at Nowack & Olson Can Help You Rebuild Your Credit
Indeed, Chapter 7 bankruptcy is not without risks. Your credit rating will likely take a severe hit. And if you have assets subject to a secured lien, such as a mortgage, you can still lose that property. But filing for bankruptcy can also protect your remaining assets and enable you to create a plan to rebuild your credit going forward.
It is therefore critical to get your Chapter 7 bankruptcy filing right the first time. Nowack & Olson can help. We will explain your legal rights and obligations under federal bankruptcy law. And we will assist you with every step of the actual bankruptcy process, from filing your petition to appearing in court and–hopefully–receiving your discharge.
Call a Boca Raton Chapter 7 bankruptcy lawyer at Nowack & Olson today at 561-463-2265 to schedule a free, no-obligation consultation.