Chapter 7 Bankruptcy

Is Chapter 7 bankruptcy right for me?

Chapter 7 bankruptcy is designed to wipe out debts and allow you to get on with your life. It is the fastest and most straightforward type of bankruptcy, making it a popular choice for many Americans. Chapter 7 generally works best if you are burdened with a lot of unsecured debt, like credit cards, medical bills, and personal loans. In most cases, you can keep your assets, like your car, home, and other valuables, when you file. The Court appoints a Chapter 7 Trustee to review your case and this is the person we meet with when we go to court.

Will I lose my property?

Chapter 7 bankruptcy is often called liquidation bankruptcy because some assets may be sold by the Trustee in order to pay back creditors.  However, due to our expertise and guidance, actual liquidation occurs very infrequently.  Both state and federal bankruptcy laws offer a list of specific items that a person, couple, or family may keep.  These are called “exemptions” because they provide protection for assets which are then “exempt” from the bankruptcy and out of the reach of the creditors and the Chapter 7 Trustee.  In the vast majority of cases, people who file Chapter 7 bankruptcy will not lose any of their property.   

Will it get rid of all of my debt and judgements?

Chapter 7 wipes out almost every kind of debt and judgement. Some debts, such as student loans, cannot be treated in a Chapter 7 bankruptcy (but can be treated in a Chapter 13).  Many people mistakenly believe that income tax debt cannot be discharged, but under certain circumstances, a Chapter 7 bankruptcy can even wipe out debts to the IRS.

 

Consider Chapter 7 when:

  • You are making your minimum credit card payments each month but not much more
  • You have one or more payday loans
  • You have medical bills
  • Someone is trying to sue you
  • You are making less money now than you had previously
  • A change in family status (marriage, death in the family) has affected your finances
  • Collectors are calling you and your family
  • You have had a repossession
  • You are being garnished
  • You are stressed or worried about your finances. We offer a free consultation!

 

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