The same applies if all your income comes from Social Security, and all your property is exempt under the Florida bankruptcy laws. Individuals who own valuable assets can expect creditors to collect some of it for debt repayment. Florida laws may allow creditors special collection rights, and individuals may have to liquidate some of their property to pay tax debts, student loans, and child support.
Unsecured creditors like those with utility balances, medical debts, and credit card balances need to sue you in court to obtain a judgment before they can begin collection procedures. For such creditors, common collection procedures would include seizure of personal property and wage garnishment.
It is important that you consult a Florida bankruptcy attorney once you’re served with a lawsuit by your creditor. Whenever the creditor receives a judgment before you file for Chapter 7 bankruptcy, liens will be placed on your property. It is important to note that liens don’t always go away in Chapter 7 bankruptcy, and your creditor gains a permanent right to your property. However, filing for Chapter 7 may still offer much-needed relief even if a judgment has already been made against you.