Approximately 70% of the bankruptcies filed by debtors in the Middle District of Florida, Orlando Division are filed under Chapter 7. If you have credit card and other debts and limited assets, this is the bankruptcy most individuals probably file. However, to be eligible to file Chapter 7, you must pass the means test .
A Chapter 7 bankruptcy is a liquidation bankruptcy. This means that you do not have the ability to repay your debts and that your non-exempt property, if you have any, may be sold or liquidated and the proceeds used to repay you creditors. You will be allowed to retain your exempt property so it is important for you to properly claim your allowable exemptions. It usually takes about five months to administer a Chapter 7 bankruptcy case.