The Truth About Chapter 7 Bankruptcy

What Is Chapter 7?

Chapter 7 bankruptcy is defined as Protection from creditors granted to individuals or companies who legally file for bankruptcy, providing for liquidation of certain assets to pay debts.

A bank trustee is assigned and is tasked with gathering and selling your nonexempt assets. They then take the proceeds to pay off your debtors. There is no payment plan, this is a complete liquidation of your assets followed by immediate payment of debts.

Filing for Chapter 7 is for people who cannot afford to pay the minimum payments on their debts. If your income is lower than the median average in Florida, you probably will qualify for Chapter 7. 

John E Mufson is the best bankruptcy attorney in South Florida. He will listen to you carefully and address any concerns. We want to make sure that filing for Chapter 7 is the right choice for you.

 

What Are The Benefits Of Chapter 7?

Making the decision to file for Chapter 7 bankruptcy is a serious choice. Your financial future can hang in the balance. Some benefits can outweigh the negative effects of filing. Below is a list of some benefits to filing for Chapter 7.

  • Most credit card debt is discharged.
  • Most medical bills are also discharged.
  • You get to keep your future income.
  • The process is quick, usually only taking 3-6 months.
  • You will qualify for new credit faster than most other bankruptcy alternatives.
  • You will get a fresh start and be free from most personal liabilities.
  • There is no limit to the amount of debt you have.
  • You will receive credit counseling to help you develop a better financial portfolio.

Chapter 7 bankruptcy is a powerful tool in debt relief. It is a personal decision you should consider in-depth. John E. Mufson is an expert bankruptcy attorney and here to discuss the pros and cons of chapter 7 bankruptcy. We have three locations in South Florida to serve you anytime.

 

What Are The Disadvantages Of Filing For Chapter 7?

If you have had the chance to speak to a bankruptcy attorney, you may have decided that Chapter 7 is the right choice. The consequences should not be as greater than the benefits we listed above. Take the opportunity now to review what the negative aspects are for filing Chapter 7.

 

  • You will need to rebuild your credit
  • A chapter 7 bankruptcy will remain on your credit report for up to 10 years.
  • It can take up to 2 years before you see your credit score start to rise
  • There are some medical and credit card debts that are not excused from debt.
  • You will need to give up any personal luxury items to pay your debtors.
  • You can only file for Chapter 7 once every 8 years.
  • It will not remove any liens on your car or home.
  • You could lose your car or home to pay off existing debts.
  • Your chapter 7 bankruptcy will be a matter of public record.

 

How Do I Decide On A Bankruptcy Attorney?

It can be a very complicated decision about deciding whether or not to file for Chapter 7. You should discuss if Chapter 7 is right for you with an expert on the subject. The process can be complicated if you try it yourself and making the wrong decision can be costly. 

 

John E. Mufson is a member of the Florida Bar, United States District Court for the Southern District of Florida, and the National Association of Consumer Bankruptcy Attorneys. He has over 25 years of experience providing Palm Beach County residents the best in legal advice.

 

Mufson Law Can Help!

John had filed over 2,000 bankruptcy cases in Florida. He is also a member of the National Association of Consumer Bankruptcy Attorneys. He is an expert in Chapter 7 and Chapter 13 bankruptcy codes. If you are looking for a bankruptcy attorney, you have found him. We have offices in Coconut Creek, Delray Beach, and Boynton Beach. Visit our site or call us at (561) 272-1003 day or night to arrange a free consultation.

What’s the Difference Between Chapter 7 and Chapter 13 Bankruptcy?

Deciding whether to file bankruptcy or not can be a big decision. You have to take a look at all of your debt and figure out if it’s something you can tackle. If it does seem like an overwhelming amount that you would carry through the rest of your life, bankruptcy may be a good idea. There’s no shame in filing bankruptcy; people do it all the time.

 

Whether you just went through an expensive divorce or suffered from a severe medical condition, debt happens. The first step towards figuring out if bankruptcy is right for you is by contacting an attorney. A bankruptcy attorney that has expertise in bankruptcy law like Mufson Law in Delray Beach can point you in the right direction. 

 

The next step is deciding whether you are filing a Chapter 7 or Chapter 13 bankruptcy, keep reading to learn more about their differences.

 

What is Chapter 7 Bankruptcy?

Chapter 7 is a type of bankruptcy that is filed by individuals and small business owners. The main reason for Chapter 7 bankruptcy is to get rid of credit card debt, medical debt, and other unsecured forms of debt. This type of bankruptcy allows the person filing to hold onto many of their necessary assets. Some people get anxious about losing their property or cars amid bankruptcy. However, with Chapter 7, you can hold onto the things that matter most. This type of bankruptcy can get filed every eight years; although, no one wants to go through this more than once.

 

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy; gets filed for the same reasons as Chapter 7. The main difference is that with Chapter 13, you pay some of your debt back. In Chapter 7, you do not have this responsibility. The payback process usually goes on for about 3-5 years and is not a set amount. When you file under Chapter 13, you will undergo an analysis to determine how much you can pay back every month. Some of the things looked at will be your income and monthly expenses, such as bills. In Chapter 7 bankruptcy, you get to hold onto your necessary assets, such as a house and a car, but in Chapter 13, you are restricted to what you can keep. For instance, any jewelry with high value isn’t exactly a necessity. You may have to sell this to pay back some of your debts. But when you decide to make these monthly payments instead, you can hold onto these nonexempt assets.

 

What are the Benefits of Filing Either Form of Bankruptcy?

The term bankruptcy seems to carry a stigma with it. However, many people file for bankruptcy, from young and old to low income and high income. Life is always throwing curveballs, and sometimes people end up needing some extra help. The main benefit of bankruptcy is relieving debt. Debt racks up over time and charges you interest. What might have been 10k owed could quickly turn into 20k over time, making it effortless to drown in debt. 

 

When you file for either form of bankruptcy, you are allowing yourself to press reset. Debt only brings your credit score down, making life a little bit harder. While bankruptcy may scare you from a credit score aspect, what debt is doing is way worse. Another benefit is relief from debt collectors. If you owe money, you are going to get hounded with calls. These people are ruthless and call multiple times and from different phone numbers. The only way to shake them is to pay up or file for bankruptcy. Either way, the relief from harassment is an underrated benefit.

 

Contact Mufson Law Today!

Are you unsure if filing for bankruptcy is right for you? Not knowing whether or not you should or need to is completely normal. Most people choose to tackle their debt for some time before realizing that it’s adding up faster than it’s going down. Whatever you decide to do, it’s never a bad idea to get a professional’s opinion. With the help of a bankruptcy attorney, you can have some insight into bankruptcy law in Delray Beach. This information will allow you to make the best decision for your situation. To get your free consultation, reach out to the Mufson Law team at (561) 272-1003.

Here Are 3 Steps to Take Before Filing for Bankruptcy

Once you decide to file for bankruptcy, you may be wondering what the next steps are. The topic of bankruptcy has quickly become one that is highly stigmatized and deemed taboo in society. And unfortunately, these labels make it difficult to get the real and vital information on it. 

 

The best thing you can do is contact a bankruptcy lawyer for bankruptcy help in Delray Beach. A lawyer can instruct you on what to do and confirm that filing for bankruptcy is a good move in your situation. It never hurts to have an expert’s opinion, especially when it comes to a big decision like filing for bankruptcy. Here at Mufson Law, our team is here to help with all things related to bankruptcy. Whether you need more information or want us to evaluate your case, we have you covered.

 

Step 1: Evaluate Your Debt

Whether you are 100% confident in filing for bankruptcy or not, you should first evaluate your debt. Debt comes in many forms, student loan debt, medical debt, credit card debt, and the list goes on. We recommend printing all of this information out or having it saved in a secure location. You want to be able to access it all in one spot. Next, double-check what you owe and gameplan. If it seems that you can budget and pay some of it off, maybe bankruptcy is avoidable. Or, on the other hand, if the debt is impossible to pay off, you know that filing for bankruptcy is the next move. You are also going to want all this information in one place if you do file bankruptcy. Your attorney is going to need to see these numbers to get you bankruptcy help in Delray Beach.

 

Step 2: Contact a Bankruptcy Lawyer

Now that all of the numbers are in an easy to access place, you can move on to step 2. During this step, you are going to want to reach out to a bankruptcy lawyer. Our team at Mufson Law can hop on a call with you for a free case evaluation. While on this call, we can discuss your unique situation and talk about the numbers. The more information you can tell us, the better legal advice we can give. If our team finds that bankruptcy can help you and is the best move for you, we can move forward with helping you file. Filing for bankruptcy is quite the process and has many phases to it. No one can do the whole thing alone, and it’s best not to. You want to do it right and avoid cutting any corners. Remember, filing for bankruptcy is for you to get out of debt and secure a stable financial future. If we’re going to do it, we need to do it the right way for your situation.

 

Step 3: Choose Between Chapter 7 and Chapter 13

Now that you are filing for bankruptcy, you need to choose between Chapter 7 and Chapter 13. These two ways of filing are similar but have critical differences. The main difference you want to pay attention to is the asset part of each. In Chapter 7, you are eliminating debt, such as medical debt, credit card debt, and unsecured debt, as an individual or small business owner. You get to keep your necessary assets, such as your home, car, and home necessities such as appliances. However, you may not be able to hold onto everything. In Chapter 13, most things are the same as far as who is filing and what kind of debt they want to eliminate. The main difference is that you will pay some of the debt back. You will have monthly payments based on your income and expenses. This payment plan will likely last between 3 and 5 years. There are more nitty-gritty details to consider, but your bankruptcy lawyer will help with that.

 

We Can Help! Contact Us Today!

For a free consultation and bankruptcy help in Delray Beach, reach out to Mufson Law. When you hop on a phone call with our team, we can help point you in the right direction. Whether you end up filing for bankruptcy or not, our team can give you our expert opinion on your unique case. Reach out to us at (561) 272-1003 for your free consultation.

How Filing for Bankruptcy Changes Your Life

Bankruptcy is one of those topics of conversation that usually don’t come up organically. This is partly due to the stigma that surrounds those who utilize bankruptcy to get out of a bad situation. While we don’t blame people for wanting to keep their financial life private, the topic should not be frowned upon or considered as a negative one. If more people knew about bankruptcy and how it works, it could help those who may be able to benefit from it. While going through bankruptcy should not be glamorized, it most definitely should not be shunned in conversations. Here at The Law Offices of John E. Mufson, we choose to think about bankruptcy as a reset button. It is a chance for someone to start over and rebuild. If you are in a situation that feels like debt has overcome your life, then let our team help you. We can sit down with you and find out if filing for bankruptcy can help your unique situation. In the meantime, keep reading to get an idea of how filing for bankruptcy can change your life.

 

What Happens After Filing for Bankruptcy?

When you file for bankruptcy you are going to face some negative consequences, but once the process is over you will find that the fresh start is exactly what you needed to move forward. It’s important to know that there are also different kinds of bankruptcies you can file. While many will have similar consequences. Some may be better or worse for you depending on your unique situation.

 

Material Losses

After you choose which kind you want to file you are going to more than likely going to face some loss. While the reset button will be happily given to you, you are not going to get it without going through the wringer temporarily. This is why we always suggest speaking with an attorney about this decision before you make it. You want to make sure that the benefits outweigh the consequences before you file. But don’t worry too much, that’s what our team at The Law Offices of John E. Mufson are here for. A potential loss consequence of filing for bankruptcy is the loss of property or material items. You are not going to have debt erased without paying back creditors to an extent. This means that you may have to give up your home or homes, depending on your situation. If not your home, at the very least you will face losing expensive jewelry, vehicles, antique items, and other material possessions.

 

Damaged Credit

You may also face a damaged credit. This may have already been a reality of your life with outstanding debt; however, if your credit was not already damaged, it will be now. Not to say that it will always be like this. You will be able to rebuild it, it will just take some time. Lenders may choose to lend to you with higher interest rates in the future or decide to lend you less than they otherwise would have. However, your fate is not sealed by bad credit. By working with your attorney you can find a “give and take” situation that works best for you. For instance, some people find a way to not give up their home. Thus, they do not have to worry about the bad credit as much as they are not planning on taking out a new mortgage anytime soon. This is why it is so important to work with the best bankruptcy attorneys. Such as our team at The Law Offices of John E. Mufson.

 

Contact Us Today

If you have been struggling with debt and have no way of escaping it, then filing for bankruptcy may be a solution for you. While there are many downsides to filing for bankruptcy, the freedom you will have from your debt will allow you to receive more positives. Such as being debt-free and getting a second chance at rebuilding your credit. Living with debt isn’t easy, and neither is filing for bankruptcy, but we know you can turn things around once you bite the bullet and do it. To learn more about how to file for bankruptcy and if it is right for you, give us a call today at (561) 272-1003.

Trust an Experienced Bankruptcy Attorney in Delray Beach to Protect your Rights

Many people want to know exactly how to file for bankruptcy. Whether you’re filing Chapter 7, 11 or 13, the process can be complicated. That’s why it’s in your best interest to find legal guidance for this matter. You want a Chapter 13 bankruptcy law firm in Delray Beach that has the years of experience and knowledge in understanding all of the ins and outs involved with processing your case through the court system. The exceptional team of attorneys at, The Law Offices of John E.  are here to help you navigate the bankruptcy system and explore your best options.

Which Is The Best Bankruptcy Option for Me? Chapter 7, 11 or Chapter 13? 

All options are available to individuals, but for most, usually Chapter 13 makes the most sense. Let’s break it down here and see why:

• Chapter 7 – If you file this type of bankruptcy you are required to liquidate all of your assets to quickly pay off your debts. No payment plan is needed as all of the liquidated assets will be enough to cover your debt. If you owe far more than you could ever fathom paying back, then you may be a candidate for Chapter 7 bankruptcy. 

• Chapter 11 – This is mainly for businesses, but can also be applied to an individual. Essentially, a repayment plan is created to help reduce your debt. The case must be agreed to by your creditors and confirmed in court. Chapter 11 usually makes sense for individuals or businesses with a very large amount of debt to pay back. 

• Chapter 13 – This type of bankruptcy is most commonly filed by individuals who have under $400,000 or less worth of unsecured debt. In this scenario, you keep your property in exchange for paying creditors your disposable income over a three to five-year repayment plan. Your creditors are required to stop all collection notices and you may even get your debt reduced or even wiped out completely. 

How do I get in touch with the best Chapter 13 bankruptcy attorney?

There is no clear-cut path to negotiating a bankruptcy settlement. In fact, we differ from many of the debt relief companies out there who will try to take advantage of you. That’s because we really try to help our clients get out from underwater without risking the destruction of your credit score for 10 years or more. Our team of exceptional chapter 13 bankruptcy attorneys has the years of experience to negotiate the most effective settlement for you. Rest assured we can help you determine which path may be the best for you to take. Because the bankruptcy choices you are presented with can feel incredibly overwhelming, we provide several options designed to help you get out of debt. 

How do I get started?

The best way to begin is to sit down face-to-face with one of our chapter 13 bankruptcy attorneys in Delray Beach. Rest assured that we will negotiate a fair and manageable plan for you. Filing for any type of bankruptcy, whether it be 7, 13, or 11 if you own a business, it is a complex matter best left to a professional. We can create an actionable debt relief plan for you that will not destroy your credit as some advertised debt relief plans do. We can help you regain your life and be free from debt once again. Don’t you owe it to yourself and your family to make this financial change? You deserve the most aggressive legal assistance, guidance, and representation you can find from a Chapter 13 bankruptcy lawyer in Delray Beach. Our many positive reviews don’t lie; it’s what we do for our clients every day is to help them rebuild their futures. We can do the same for you! To get started, please call us for a free consultation at (561) 272-1003. We are open and ready for business during this challenging time. 

How to Tell if Chapter 7 Bankruptcy is For You: Tips from a Top Chapter 7 Bankruptcy Lawyer in Delray Beach

If you’re thinking about filing for bankruptcy, you may be wondering, “How could this happen to me,” or that it’s something to be embarrassed about. But the truth is that it happens to people from all walks of life. Your grandmother, teacher, the mailman, or your doctor could file for bankruptcy at some time in their life. Sometimes bills pile up and it just becomes impossible to make ends meet. It’s nothing to be ashamed of and the good news is that help is available. At The Law Offices of John E. Mufson, we now it can be hard to manage your bills, credit card debts, medical expenses, and just the daily costs of living. It’s even harder to manage today when so many are out of work due to the COVID-19 pandemic. If you owe far more than you make, if you’re fed up with calls from creditors or if you’re constantly worrying about your bills, call our team of expert chapter 7 bankruptcy lawyers in Delray Beach today. We have a great success record and we’re one of the best bankruptcy law firms in Delray Beach.

How does bankruptcy work exactly?

Filing the paperwork for bankruptcy can be tedious and confusing, which is why it’s essential to call on the legal guidance and support of an experienced bankruptcy law firm like The Law Offices of John E. Mufson We are here to discuss the best options with you when thinking about filing for bankruptcy in Delray beach. 

What are the different types of bankruptcy options in Delray Beach?

There are a few different types of bankruptcy options and one may be a better choice for individuals and another may be a better choice for business owners. Chapter 13 is the best choice for many individuals. If you have the financial ability to pay off some of your debts but not all of your balances, then Chapter 13 may be the right fit for you. This form of bankruptcy involves a debt restructuring plan. Your income, debt, and expenses are analyzed, then your debts are restructured into payment amounts and cycles that match your financial capabilities. This means that with the help of Chapter 13 bankruptcy, you pay back only a small portion of your debt, a portion that won’t cost more than you can handle. The leftover balances after the Chapter 13 payment period can simply be wiped clean in many cases. 

Chapter 7 is another type of bankruptcy that you can file. If you owe far more than you can pay back, then you may be a candidate for Chapter 7 and calling on a chapter 7 bankruptcy lawyer in Delray Beach is your best option. With a Chapter 7, structure bankruptcy assets are exchanged for exemption of debts. Essentially, your credit card debts, medical bills, and other debts are wiped completely clean. You are not required to set up a payment plan, but instead, you exchange nonexempt assets for debt liquidation.  

How can you get started?

At The Law Offices of John E. Mufson, a leading bankruptcy law firm in Delray Beach, we’re here to help you understand how to approach chapter 7 bankruptcy and determine if it’s the right move for a person in your financial situation. We can guide you towards the healthy financial future you deserve, with legal assistance, support, and the best representation in South Florida. To learn more about how we can help with your individual situation, please call (561) 272-1003 for a free consultation and to meet with one of our skilled Chapter 7 bankruptcy lawyers in Delray Beach. 

Bankruptcy is A Growing Epidemic in America

If you’re thinking about filing for bankruptcy, then you are not alone. Millions of Americans file for bankruptcy every year and it’s a serious growing epidemic. If you’re reading this, you’re probably bogged down with a lot of debt from credit cards, school or personal loans that you just can’t handle. If you find yourself wondering, “How could this happen to me,” it’s nothing to be ashamed about. It’s more common than you think. The truth is that it happens to people from all walks of life. Sometimes bills pile up and it just becomes impossible to make ends meet. At The Law Offices of John E. Mufson, we know how tough it can be to manage your bills, credit card debts, medical expenses and just the costs of day-to-day living. If you owe far more than you make in a month, if you’re fed up with calls from creditors or if you’re constantly worrying about your bills, call the experienced bankruptcy law firm in Delray Beach, The Law Offices of John E. Mufson. We have a great success record and we’re one of the best bankruptcy law firms in South Florida.  

How Does Bankruptcy Work Exactly?  

Filing the paperwork for bankruptcy can be complicated, which is why it’s vital to engage the legal guidance and support of an experienced bankruptcy law firm in Delray Beach like The Law Offices of John E. Mufson. We are here to discuss all of your options when it comes to deciding whether to not to file for bankruptcy.   

What Are My Bankruptcy Options?  

There are a few different types of bankruptcies and one may be a better choice for individuals and another may be a better choice for business owners. The two most common types of bankruptcy are:   

Chapter 13 is the best choice for many individuals. If you have the financial ability to pay off some of your debts but not all of your balances, then Chapter 13 may be the right fit for you. This form of bankruptcy involves a debt restructuring plan. Your income, debt, and expenses are analyzed, then your debts are restructured into payment amounts and cycles that match your financial capabilities. This means that with the help of Chapter 13 bankruptcy, you pay back only a small portion of your debt, a portion that won’t cost more than you can handle. The leftover balances after the Chapter 13 payment period can simply be wiped clean in many cases.   

Chapter 7 is another type of bankruptcy that you can file. If you owe far more than you can pay back, then you may be a candidate for Chapter 7 bankruptcy. Here, assets are exchanged for exemption of debts. Essentially, your credit card debts, medical bills, and other debts are wiped completely clean. You are not required to set up a payment plan, but instead, you exchange nonexempt assets for debt liquidation.    

At The Law Offices of John E. Mufson, a leading bankruptcy law firm in Delray Beach, we’re here to help you understand how to approach bankruptcy and determine if it’s the right move for a person in your financial situation. We can guide you towards the healthy financial future you deserve, with legal assistance, support and the best representation in South Florida. To learn more about how we can help with your individual situation, please call (561) 272-1003 for a free consultation and to meet with one of our skilled bankruptcy attorneys. 

Do Millennials Need More Debt Relief Than Previous Generations?

The average person in Florida might be hard-pressed to find a news article that shines a positive light on the millennial generation. Frequently criticized for supposedly taking down the napkin and chain restaurant industries, articles often shine a light on the difficult financial situation that many millennials find themselves in. While it might be true that some of the young adults in this generation are in need of debt relief, many are doing just fine.

Millennials range in age from late 20s to their 30s; and their spending habits reflect their age. That is not necessarily a bad thing, though. According to an expert in personal finance with NerdWallet, millennials are on track to be in the same financial position as baby boomers in a few decades. This seems to contradict what many people love to believe about millennials, which is that they are irresponsible with their finances.

What may come as even more of a surprise is that millennials’ financial priorities are largely the same as those of their baby boomer parents. In a survey that asked adults what they would do with an extra $1,000, the majority of both generations prioritized saving and investing. One surprise was the baby boomer attitude toward traveling. In this survey, 7% said they would spend the money to travel while only 3% of millennials would use the money for that purpose.

While it is good news that adults of all generations have their financial priorities in order, having good spending habits does not necessarily prevent anyone from going into debt. Additionally, millennials are not shielded from needing debt relief just by virtue of being young. Rather than spending years trying to climb out of impossibly steep debts, some young adults in Florida might find a better outcome from pursuing personal bankruptcy.

With student loans becoming an increasingly hot button topic as a pressing financial concern and burden for the financial livelihood of millennials, more people are seeking ways to find a debt solution in Delray Beach.

It is important that if you are a young person—or of any age—seeking debt plan or debt program in Delray Beach, that you contact a professional. The Law Office of John E. Mufson has been helping people in South Florida get debt relief for more than 25 years. Call us today at (561) 272-1003 for a free consultation.

What Debt Does Bankruptcy Not Discharge?

When filing for bankruptcy, one of the most common things people look forward to having is the majority of their unmanageable debt dismissed or discharged. Sadly, this isn’t a reality for every person who experiences bankruptcy.

Not at all debt is qualified for discharge during bankruptcy. Regardless of which chapter of bankruptcy you file for, there are some types of debt which will not be cleared or covered by the acquittal of your case. Knowing these in advance can help prepare you for the best possible outcome during the bankruptcy process—and prevent unpleasant surprises later!

What Debt Does Bankruptcy Not Cover?

Some debts cannot ever be discharged during bankruptcy, regardless of any other circumstances. These are consistent from state to state and include legal obligations such as child support and alimony. Other types of debts that can never be dismissed by a bankruptcy discharge include restitution owed for legal infractions (penalties owed for breaking the law), wrongful death penalty costs, and certain types of tax debt.

If you owe condo, coop, or HOA fees—or have retirement-related debt—you will continue to be responsible for these payments during and after a bankruptcy. Likewise, if you refuse to list or ‘schedule’ a debt as part of your bankruptcy filing, there is no way that it can be dismissed as part of a bankruptcy discharge unless that creditor had prior and specific knowledge of your bankruptcy filing and is willing to release your debt as part of it.

Other types of debts are simply difficult to discharge. Student loan debt is famous for being difficult to discharge. Proving long-term and ongoing financial hardship that will make repaying this debt impossible or improbable is typically the only way to get this type of debt released—and this is a difficult task, even for an experienced legal professional. More lenient policies are making it easier to get student debt discharged than it has been in the past, but it remains a tricky proposition in regard to bankruptcy.

In some cases, creditors can even appeal the automatic stay process that keeps them from pursuing compensation of debts owed during your bankruptcy. This means that the protection that bankruptcy would typically afford you would be compromised at the order of the court, and these creditors would be allowed to pursue repayment of your debt regardless of your active bankruptcy case. This can leave you and your creditor stuck in a seemingly endless loop of appealing to the courts to explain why you deserve relief from the other’s actions. This makes determining what debt does bankruptcy not cover nearly impossible—and the process of bankruptcy itself far more stressful than it needs to be!

Debts Worth Arguing Over

Some debts are discharged unless the creditor successfully argues that they should not be. Being informed of these can help prepare you for the chance that your creditors will pursue payment of these debts. These debts may include:

  • Debts belonging to creditors not listed on your bankruptcy paperwork
  • Fraud-related debts
  • Debts related to willful or malicious acts
  • Debt incurred from larceny, embezzlement, breach of fiduciary duty, etc.
  • These guidelines also apply to debts incurred from the purchase of luxury items or services, with specific regulations. For purchases of more than $725, they must have been made within 90 days of filing. Cash advances of over $1000 taken out within 70 days of filing also fall under these guidelines.

No Absolute Right to Discharge

What debt does bankruptcy not cover? If you don’t follow the rules, the answer could be all of it. After all, there is no absolute right to discharge of a bankruptcy. Too many people enter the bankruptcy process believing that they can behave any way they see fit and receive a discharge and walk out of court with all of their debts left behind.

Failing to follow the rules of your state and the national bankruptcy law can result in an objection on the part of the bankruptcy trustee to discharge your debt. How can you stay within the lines and play by the rules? It helps to know them.

Here’s what to do if you’re hoping for an uncomplicated discharge:

  • Provide all request documentation, including tax documents in a timely manner
  • Do not hide, transfer, or destroy assets, records, books, documents, or otherwise try to commit fraud or hinder any investigation into your finances related to your bankruptcy case
  • Ensure that all of your assets can be accounted for
  • Show up for all requested or required court appearances and be honest and forthcoming with those you speak with regarding your bankruptcy
  • Complete a financial management course during your bankruptcy to ensure mastery of financial concepts and a better outlook for your financial future
  • Be sure that you don’t file for bankruptcy too soon after previously doing so, as this may cause your case to be rejected for discharge automatically.
  • In some cases, you can follow all the rules to the letter and still find out that there are perfectly legal reasons why your creditors are capable of standing in the way of your discharge. When this happens it can be devastating. However, with the right counsel and some research on your side, you can expect to move through a bankruptcy with relatively little stress.

It is important to always discuss the details of your case with a local legal professional who specializes in bankruptcy and related issues. Bankruptcy law firms in Delray Beach can be upfront with you about your options for debt relief. If filing for bankruptcy is the plan best for you, our legal team at The Law Office of John E. Mufson will take the time to fully explain your options so that you’re truly confident in the decisions you’re making. Call us today at (561) 272-1003 for a free consultation.

How Can I Get Out of Debt Without Losing Everything I Own?

If you’re thinking about filing for bankruptcy, it’s nothing to be ashamed about. In fact, the average American has about $38,000 on average in personal debt excluding home mortgages. The truth is that it happens to people from all walks of life. Sometimes bills pile up and it just becomes impossible to make ends meet. At The Law Office of John E. Mufson, we know how tough it can be to manage your bills, credit card debt, student loans, medical expenses and just the daily cost of living in our materialistic society. If you owe far more than you make, if you’re fed up with calls from creditors or if you’re constantly worrying about your medical bills and inability to pay back your student loans, don’t despair, help is available. Call on a professional bankruptcy law firm in Delray Beach like The Law Office of John E. Mufson. We have a great success record and we’re considered one of the best bankruptcy law firms in Delray Beach.

How does bankruptcy work exactly?

Filing the paperwork for bankruptcy can be tedious and complicated, which is why it’s vital to engage the legal guidance and support of an experienced bankruptcy law firm in Delray Beach. The skilled bankruptcy attorneys at the Law Office of John E. Mufson can discuss all of your options when it comes to filing for bankruptcy and the best options to choose from.  

What are my bankruptcy options?

There are a few different types of bankruptcies and one may be a better choice for individuals and another may be a better choice for business owners. These are considered the most sensible bankruptcy options: 

Chapter 7 is a type of bankruptcy that an individual can file. If you owe far more than you can pay back, then you may be a candidate for Chapter 7 bankruptcy. Here, assets are exchanged for exemption of debts. Essentially your credit card debts, medical bills, and other debts are wiped completely clean. You are not required to set up a payment plan, but instead, you exchange nonexempt assets for debt liquidation.  

Chapter 13 is the best choice for many individuals. If you have the financial ability to pay off some of your debts but not all of your balances, then Chapter 13 may be the right fit for you. This form of bankruptcy involves a debt restructuring plan. Your income, debt, and expenses are analyzed, then your debts are restructured into payment amounts and cycles that match your financial capabilities. This means that with the help of Chapter 13 bankruptcy, you pay back only a small portion of your debt, a portion that won’t cost more than you can handle. The leftover balances after the Chapter 13 payment period can simply be wiped clean in many cases. 

Our bankruptcy law firm in Delray Beach is prepared to help you understand what filing for bankruptcy means and to determine your best options. Let the expert bankruptcy lawyers at The Law Office of John E. Mufson help you get rid of your debt and guide you towards the financial future you deserve. To learn more about how we can help with your individual situation, please call for a free consultation with one of our skilled bankruptcy attorneys in Delray Beach at (561) 272-1003.