Chapter 7
What Is Chapter 7 Bankruptcy And Is It Right For Me?
Chapter 7 bankruptcy erases most debts giving the filer a fresh start with his or her credit. It generally lasts about four to five months from the time the case is filed until it is completed. People who have a large amount of unsecured debt, such as credit cards, personal loans, utilities, payday loans, cash advances, monies owing after vehicle repossessions, garnishments and medical bills are typically good candidates for chapter 7 bankruptcy. In the majority of cases, a person can keep their home, car, and other valuables, when he or she files.
Will I Lose My Property If I File For Chapter 7?
Most people who file for chapter 7 bankruptcy do not lose any of their property. Chapter 7 bankruptcy is sometimes referred to as a liquidation bankruptcy because some assets can be sold by the bankruptcy Trustee to pay back the person’s creditors. This rarely occurs, however, because our expert attorneys carefully comb through every detail of your case and check for anything that could be an issue for the trustee. Furthermore, both state and federal bankruptcy laws provide a list of particular items that an individual, couple, or family can keep. These items are called exemptions and they provide protection for a person’s assets. Those assets are considered exempt from the bankruptcy and cannot be touched by creditors or the trustee.
Will Chapter 7 Bankruptcy Get Rid Of All of My Debts And Judgments?
While chapter 7 bankruptcy erases most debts and judgments, some debts cannot be erased in chapter 7. In those cases, chapter 13 is a usually a good alternative. However, there are some debts that usually cannot be erased in any bankruptcy type. Some of these debts include student loans, recently owed income taxes, child support or alimony, fines and fees related to criminal charges and traffic tickets.
Consider Chapter 7 When:
Chapter 7 bankruptcy erases most debts giving the filer a fresh start with his or her credit. It generally lasts about four to five months from the time the case is filed until it is completed. People who have a large amount of unsecured debt, such as credit cards, personal loans, utilities, payday loans, cash advances, monies owing after vehicle repossessions, garnishments and medical bills are typically good candidates for chapter 7 bankruptcy. In the majority of cases, a person can keep their home, car, and other valuables, when he or she files.
Will I Lose My Property If I File For Chapter 7?
Most people who file for chapter 7 bankruptcy do not lose any of their property. Chapter 7 bankruptcy is sometimes referred to as a liquidation bankruptcy because some assets can be sold by the bankruptcy Trustee to pay back the person’s creditors. This rarely occurs, however, because our expert attorneys carefully comb through every detail of your case and check for anything that could be an issue for the trustee. Furthermore, both state and federal bankruptcy laws provide a list of particular items that an individual, couple, or family can keep. These items are called exemptions and they provide protection for a person’s assets. Those assets are considered exempt from the bankruptcy and cannot be touched by creditors or the trustee.
Will Chapter 7 Bankruptcy Get Rid Of All of My Debts And Judgments?
While chapter 7 bankruptcy erases most debts and judgments, some debts cannot be erased in chapter 7. In those cases, chapter 13 is a usually a good alternative. However, there are some debts that usually cannot be erased in any bankruptcy type. Some of these debts include student loans, recently owed income taxes, child support or alimony, fines and fees related to criminal charges and traffic tickets.
Consider Chapter 7 When:
- You cannot pay your monthly credit card bills or can only make the minimum payment.
- Your wages have been garnished or about to be garnished.
- You have been sued or have recently had a judgment entered against you.
- You have mounting medical bills that cannot be paid off.
- You have payday loans.
- Your car has been repossessed or is in danger or repossession
- Your home is going into foreclosure.
- You cannot keep up with your monthly bills and are struggling to keep your head above water.
- You have recently lost your job, had a decrease in income and/or increase in household expenses or have had a change in your family status such as a death, marriage or divorce, or a child and you can no longer afford to pay your bills.