Legal Question in Bankruptcy in Florida

Re: Chapter 7

Whether the debts arising from the lease are extinguished by your Chapter 7 discharge depends on several factors. First, did you affirm or reject the lease on your Statement of Intentions? If you affirmed the lease, then you will be liable for the damages, just as if the bankruptcy had never happened. If you rejected the lease, then the next issue is when did the damage occur. If the damage occurred after the date you filed your bankruptcy petition, then it would be considered post-petition debt and you could still be held liable. Finally, you need to review your Schedules D/F to see if you listed the leaseholder on the schedules. If not, then the leaseholder may not be discharged for debts owed. If the leaseholder is not listed, you will need to amend prior to the entry of your discharge.

As for your credit score, well, I'll just say it, your credit is going to SUCK (that's a legal term, don't use that if you are a layman). The good news is that through aggressive credit management, you can recover a decent credit score within about 24-36 months depending upon what your score was before you filed and what you have reporting on your bureau after the discharge. You can expect that your first car immediately after bankruptcy will probably be a pretty ugly loan (high interest rate), so pick something that is cheap and will last about 2-3 years. Consider it a short term inconvenience for long-term improvement, and tell your friends its because your saving money given the economy.

For more information about credit management, check out our website at www.LaBellaLaw.com.