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.