Drowning in debt is no way to live life. You were treading water for a while, but now you finally give up. You can no longer keep up with the mounting bills, late fees and rising interest rates. You finally decide that bankruptcy is the only way to escape this vicious cycle – and the harassing calls from collectors. However, you aren’t sure what happens during the process. If you choose to file under Chapter 7, take a look a what you might expect.
What Does Chapter 7 Bankruptcy Do?
For individuals seeking relief from debt, there are usually two ways to go about getting it: Chapter 13 or Chapter 7. Bankruptcy under either chapter stops all collection activity. Once your chapter 7 lawyer Orlando FL files your petition with the court, a notice goes to all creditors listed in the petition. This immediately puts an end to the harassing activity. A judge will assign a trustee to go through your debts and assets and determine how much you can afford to pay. Once these things are sorted out, the trustee will start negotiating with creditors to pay them.
