Chapter 7 Bankruptcy

The current state of the U.S. and World economy has left many people with large amounts of unmanageable debt caused by a faltering personal business, a reduction of work hours and/or pay, or even worse, unemployment. If this sounds familiar, a Chapter 7 bankruptcy is one option you may want to consider. A Chapter 7 bankruptcy is the perfect choice for those who have few assets accompanied by large amounts of unsecured debt. A Chapter 7 bankruptcy eliminates your debt and provides you with a fresh start, eliminating a lifetime worth of bills.

What does a Chapter 7 Bankruptcy do for me?
In a Chapter 7 bankruptcy, we show the court that you are unable to sustain payments on the debt which you have accrued. Under this plan, most unsecured debt is dischargeable, such as: credit card debt, overdue utility bills, medical bills, personal loans, some tax debt, and any remaining debt on repossessed vehicles. Secured debt can also be dischargeable if you are willing to surrender the property securing the debt. There is, however, some personal property which is exempt from this and cannot be collected as repayment of debt. This includes certain amounts on the following: tools of the trade (anything necessary for your livelihood), personal clothing, retirement accounts, firearms, household goods and furnishings, bank accounts, tax returns, automobiles, and, depending on your age and marital status, a certain amount of equity in your home.

How do I file for a Chapter 7 Bankruptcy?
One of our attorneys will talk with you to review your income, employment history, the amount and types of debt you possess, as well as your household living expenses. If you are eligible, and it appears that a Chapter 7 bankruptcy would best suit your situation, we will prepare your paperwork, set your appointment where you will talk with an approved credit counseling service and sign the bankruptcy paperwork. After your case has been filed, your attorney will accompany you to your court hearing (generally 30 to 40 days after your case was filed).

Approximately 60 to 90 days after your court hearing and barring any creditor disputes, the bankruptcy court will issue a discharge order, releasing you from the claimed debt, allowing you to make your “fresh start.” It’s that simple.

Take a moment to also learn about Chapter 13 Bankruptcy, also referred to as "restructuring."