Furr and Cohen, P.A. Bankruptcy Attorney
 
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   Robert Furr
   Charles I. Cohen
   Alvin S. Goldstein
   Marc P. Barmat
   Alan R. Crane
 
Robert C. Furr
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Bankruptcy Law
   General Information
   Chapter 7
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   Ch. 13 vs. Ch. 7
   Florida Exemptions
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Chapter 7 is often called liquidation bankruptcy. In return for having debts discharged, the debtor must turn over to the Bankruptcy Trustee all property except for certain assets which Florida Law allows the debtor to keep as exempt. Chapter 7 is commonly used by individuals who want to walk away from their debts or by businesses that want to terminate their operations and liquidate their assets. When a debtor files Chapter 7, the bankruptcy court appoints a person to administer the estate. This person is called the Trustee. The Trustee sells the property and distributes the proceeds to the creditors according to priorities established by the law.

Basically, a Chapter 7 case has 5 stages:
  1. Getting the debtor into bankruptcy court;

  2. Collecting the debtor’s property;

  3. Selling this property;

  4. Distributing the proceeds of the sale to creditors; and

  5. Determining whether the debtor is discharged from further liability to these creditors.
The principal advantage of Chapter 7 is that the debtor emerges from bankruptcy without any future obligations on his or her discharged debts.

Disclaimer
To receive more information, you can contact The Florida Bar Association at The Florida Bar, 650 Apalachee Parkway, Tallahassee, Florida, 32399-2300.

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Robert C. Furr
Charles I. Cohen
Alvin S. Goldstein
Marc P. Barmat
Alan R. Crane