FLORIDA BANKRUPTCY CHAPTER 7

Bankruptcy Chapter 7 in Foreclosure Defense

A chapter 7 bankruptcy is a complete liquidation of non-exempt assets to pay off creditors. This type of bankruptcy is called a "fresh start" because it wipes out all the debt that is permitted by the Bankruptcy Code. In most cases, back taxes and student loans are the type of debts that will not be eliminated through any bankruptcy filing.

A Chapter 7 bankruptcy does not involve the filing of a plan of repayment as in chapter 13. The Bankruptcy Code allows the debtor to keep certain "exempt" property - which may include your car or personal property if it fits the guidelines of the bankruptcy code; but a trustee will liquidate the debtor's remaining assets to pay the creditors. Accordingly, debtors should realize that the filing of a chapter 7 can and will likely result in the loss of property, so long as it is not an "exempt" property.

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